Current through Register Vol. XLI, No. 50, December 13, 2024
Section 85-19-6 - Surety Requirements6.1. All employers who participate in the Security Pool are required to fully secure their claims liabilities for all claims with dates of injury prior to July 1, 2004. a. All employers who are fully secured for their claims liabilities as of the effective date of this rule shall maintain and increase their security as necessary to remain fully secured for their claims liabilities.b. The failure by an employer to fully secure and maintain security on their claims liabilities in accordance with this rule may result in revocation of self-insurance status pursuant to the provisions of W. Va. Code St. R. § 85-18-1 et seq. An employer who receives a notification of a recommendation by the Commissioner of revocation of self-insured status for failure to fully secure or maintain security on their claims liability may file a petition with the Industrial Council to be granted a six (6) month grace period to obtain security. 1. The employer shall file its petition for grace period with the Commissioner who will distribute the petition to the Industrial Council.2. The Industrial Council shall consider the petition for grace period at such time as is convenient to the Industrial Council. The Industrial Council shall consider the petition in an executive session. The Industrial Council may consider the written petition only or request the employer, the Commissioner or both to make an oral presentation. The Industrial Council shall make any decision regarding the petition for grace period in an open meeting.3. The Industrial Council shall only grant a petition for grace period upon a unanimous vote of the Industrial Council.4. An employer may only be granted one grace period.6.2. The Commissioner shall perform an annual surety review based upon the Commissioner's actuarial calculations to determine the required surety level for periods prior to July 1, 2004. Existing surety using old bond language will be credited to the employer at the estimated actual value of the bond as determined by the Commissioner.6.3. Self insured employers shall not be required to provide surety, other than through Guaranty Pool assessments, for liabilities attributable to claims with dates of injury or last exposure on or after July 1, 2004. The Commissioner may require additional surety for claims with dates of injury on or after July 1, 2004, if it is determined that an employer's financial condition has deteriorated compared to the previous year's financial analysis by the Commissioner. The employer's financial condition will be analyzed using objective benchmarks to determine a deteriorating financial condition as provided in W. Va. Code St. R. § 85-18-1 et seq.