Section 317.20 Insolvent; assessments; termination and dissolution of the group.
- Definition. "Insolvent", in the context of a determination by the Chair, or his or her designee, to levy an assessment pursuant to the provisions of Workers' Compensation Law section 50(5)(g), shall mean the inability of a private group self–insurer, to pay its outstanding lawful obligations under the Workers' Compensation Law as they mature in the regular course of business, as may be shown by: i) the self–insurer being underfunded as defined in Workers' Compensation Law section 50 (3–a); and ii) the sum of the self–insurer's assets, as defined by section 317.2(n) of this Part, plus the available security deposit held by the Chair pursuant to Workers' Compensation Law section 50(3–a) and section 317.5 of this Part, being less than the total cost of all of the self–insurers anticipated workers' compensation liabilities, as defined by section 317.2(o) of this Part, that will accrue within the succeeding six months.
- The Chair shall levy an assessment against all private group self–insurers, pursuant to Workers' Compensation Law section 50(5)(g), whenever he or she, or his or her designee, determines that workers' compensation benefits may be unpaid by reason of the default of an insolvent private group self–insurer as defined in subdivision (a).
- Termination and dissolution of the group. The group shall continue for such time as may be necessary to accomplish the purpose for which it was created, and so long as all requirements to maintain authorization as set forth in this Part continue to be met. Upon termination of the group's status as a group self–insurer, the group will continue to administer the workers' compensation liabilities incurred by the group. Upon failure on the part of the group to properly administer such liabilities, the Chair shall assume the administration and final distribution of the group's assets and liabilities.