12 CRR-NY 317.3NY-CRR
12 CRR-NY 317.3
12 CRR-NY 317.3
317.3 Qualification to operate as a group self-insurer.
To qualify as a group self-insurer and to maintain authorization to operate as a group self-insurer, the following requirements must be satisfied.
(a) The group must include two or more employers that perform related activities in a given industry and that have been in business for a period of time which is acceptable to the chair. With the exception of groups consisting of municipal corporations, a group self-insurer must demonstrate the related nature of the group members' business activities, to the satisfaction of the chair, by one or more of the following methods:
(1) all group members must be classified within the same or a related standard industrial classification code (SIC code) division structure as published in the United States Department of Commerce's Standard Industrial Classification Code Manual, or must share a predominant payroll classification;
(2) all group members must be members in good standing in an industry-specific trade association, which shall not have been established for the primary purpose of obtaining group self-insurance status and shall have been in existence for at least five years prior to applying for such status; or
(3) through the furnishing of such other information as may be required by the chair in order to demonstrate the related nature of the participating employers' business activities.
(b) With the exception of groups consisting of municipal corporations, the group must have and maintain an aggregate net worth of members which is at least $1,000,000, unless otherwise authorized by the chair. The net worth of any related or subsidiary companies which are not signatories to the trust agreement shall not be included in the calculation of aggregate net worth.
(c) With the exception of groups consisting of municipal corporations, the group must have and maintain a combined annual payroll of group members which, when multiplied by the current manual rates promulgated by the New York compensation insurance rating board, is at least $500,000, unless otherwise authorized by the chair. Such payroll shall only include amounts paid to workers in New York State who are covered by the self-insured group.
(d) With the exception of groups consisting of municipal corporations, the group must demonstrate:
(1) sufficient aggregate financial strength and liquidity as described in the capitalization requirements set forth in section 317.6 of this Part;
(2) adequate security, as described in section 317.5 of this Part; and
(3) adequate excess insurance, as described in section 317.10 of this Part, to guarantee the payment and administration of all obligations arising under the Workers' Compensation Law.
(e) A group self-insurer that fails to satisfy the requirements set forth in this Subpart to maintain authorization to operate as a group may be subject to dissolution at the direction of the chair.
12 CRR-NY 317.3
Current through June 30, 2021
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