Self-Insurance Regulation Changes

 Several changes were recently made to Self-Insurance Regulation 67-1500 to reduce the regulatory requirements on self-insured employers and self-insured funds. The changes eliminate the necessity of three (3) forms.  Form 8C, Proof of Compliance, Excess Insurance, was eliminated, allowing self-insurers to provide the Commission a certificate of insurance from their excess insurance carrier as proof of coverage.  Form 8A, Proof of Compliance, Securities Pledge, was eliminated, allowing self-insured funds who pledge securities to the Commission to provide a bank safekeeping receipt as proof of compliance. Form11A, Self-Insured Fund Annual Financial Report was eliminated since self-insured funds are already required by regulation to provide the Commission a copy of their annual audited financial report.

 The changes further allow a self-insurer to provide the Commission a copy of their excess insurance policy within 45 days of their self-insurance privileges becoming effective, instead of the previously required 30 days. In addition, the changes will allow an additional 15 days for individual self-insured employers and an additional 45 days for self-insured funds to provide the Commission with their annual audited financial report.  The changes further enable the Commission to employ outside independent auditors to assist Commission staff on audits of self-insurers, when necessary.

 Changes to Regulation 67-803 include several grammatical changes and allow approval of an Agreement and Final Release by one (1) commissioner if both parties are represented by counsel.  Previously, the signature of four (4) commissioners was required.

 The revisions to the regulations were submitted to the General Assembly in 2005.  If no legislation is introduced to disapprove the regulations or enacted to approve them before the expiration of the 125 day review period, the regulations are approved on the 125th day and are effective upon publication in the State Register.  The 125 day approval period ends for these regulations on April 22, 2006.  They become effective upon publication in the State Register which will be May 26, 2006.