Current through Register Vol. XLI, No. 50, December 13, 2024
Section 85-19-9 - Guaranty Pool Funding9.1. Beginning July 1, 2006, and in order to fund the Guaranty Pool, the Commissioner shall, except with respect to those self-insured employers and former self-insured employers required to make payments in accordance with subdivision b. of this subsection and section 10. of this rule, respectively, assess self-insured employers, as follows: a. The annual assessment shall be equal to two percent (2%) of the self-insured employer's preceding fiscal year's annual claims indemnity payments [excluding payments to settle claims on a full and final basis] or a minimum of five thousand dollars ($5,000), whichever is greater. For example, a self-insured employer has paid one million dollars ($1,000,000.00) in indemnity payments in the preceding fiscal year. Of the one million dollars ($1,000,000.00), two hundred thousand dollars ($200,000.00) has been paid to settle claims on a full and final basis. The self-insured employer would be assessed two percent (2%) of eight hundred thousand dollars ($800,000.00), which yields sixteen thousand dollars ($16,000.00) as an assessment to the self-insured employer; andb. Any employer who becomes self-insured on or after July 1, 2004, will be assessed an amount equal to five percent (5%) of the preceding year's premium, or a minimum of five thousand dollars ($5,000), whichever is greater, for a period of 3 years, beginning with the quarter in which self-insured status was made effective and regardless of whether such employer becomes an insured employer within such 3-year period: Thereafter, assessments shall be made in accordance with the same methodology utilized for other self-insured employers, as set forth in subdivision a. of this subsection. An employer's liability for the assessments imposed pursuant to this subsection is not subject to suspension under subsection 9.2. of this section.c. Payments made under this section and section 10. of this rule shall be pro-rated and made on a quarterly basis.9.2. Whenever it is determined by the Commissioner that the Guaranty Pool contains more than the sum necessary to maintain the solvency of the Pool, the Commissioner shall suspend the obligation of self-insured employers to pay the assessment under subdivision a., subsection 9.1. of this section and of any former self-insured employer to pay the assessment under section 10. of this rule: Provided, That as of July 1, 2006, ten million dollars ($10,000,000) is deemed to be an adequate level of funding to maintain the solvency of the Guaranty Pool.9.3. The Commissioner shall propose different assessment methodologies and/or a different level of minimum funding of the Pool whenever he or she determines that such a change or changes are necessary to maintain the solvency of the Pool: Provided, That any changes to the assessment methodologies, as prescribed in subdivision a. and/or b., subsection 9.1. of this section, or to the level of funding deemed necessary to maintain solvency of the Pool, as prescribed in subsection 9.2. of this section, shall be made by amendment to this rule.