(a) A group self-insurer's termination of a member shall not be effective until at least 10 days after notice of such termination, on a prescribed form, has either been filed in the office of the chair or sent by certified or registered letter, return receipt requested, and also served in like manner upon the employer.

(b) A group member shall not be eligible to withdraw from the group self-insurer and fulfill its future workers' compensation obligations through alternative coverage until it shall have provided the current group self-insurer with at least 30 days notice of its intent to terminate participation. Notice of termination shall also be provided to the chair by the group in accordance with subdivision (a) of this section.

(c) If the termination or withdrawal of a member causes the group self-insurer to fail to satisfy the qualification requirements set forth in section 317.3 of this Part, related to net worth of group self-insurer and combined payroll, the group's board of trustees and/or group administrator shall, within 30 days of the notice of withdrawal or decision to terminate, advise the chair of its plan to bring the group self-insurer into compliance with the financial and other requirements in a timely and appropriate manner. If the group self-insurer fails to devise a plan which will bring it into compliance with the financial and other requirements in a timely and appropriate manner, the chair may revoke its group self insurance status.

(d) The group self-insurer shall make a good faith effort to maintain records on the whereabouts of group members which have been terminated or which have withdrawn from participation in the group.