Section R. 408.43f - Group self-insurance; same industry requirement; approval; review; certificateRule 13f.
(1) After considering an application for group self-insurance and all supportive data, the agency shall either grant approval or advise the trustees of the selfinsurers' group of the requirements to be met before approval is granted. In determining whether private employers are in the same industry, the agency may use the standard industrial classification codes assigned to each employer applying for membership in the group. The agency shall also consider all information available on the nature of the business of each private employer and may require the group fund to present additional evidence, either oral or written, to verify that all employers applying for membership in the group fund meet the statutory requirement of being in the same industry. The group has 30 days from the receipt of the agency's notice to comply with the requirements of the agency. The self-insured authority may not become effective until the agency has received proof that all requirements of the agency for selfinsured approval have been met.(2) The group may, at the discretion of the director, be granted additional time to meet the requirements for the self-insured program. A request for an extension of time must be made in writing by the group within the 30-day compliance period. If the agency does not receive proof that all requirements for the self-insured program have been met within the time prescribed, the application is considered withdrawn.(3) On new and renewal applications, the agency may require evidence that the proposed rate for each payroll classification is adequate to cover expected losses for that payroll classification and evidence that the experience rating formula will be actuarially sound. The agency shall take all of the following factors into account before granting approval for a group self-insurance program: (a) Past and anticipated losses.(b) Proper reserves for reported and unreported losses.(c) Past surplus and expected increase in benefit levels.(d) Administrative costs. The agency may contract with a consulting actuary, at the expense of the group fund, to determine if the proposed group self-insurance program will be actuarially sound.
(4) Upon meeting the requirements of the agency, the group shall receive a formal certificate approving its status as a self-insurer. The certificate expires 12 months after the effective date of approval.Mich. Admin. Code R. 408.43f
1980 AACS; 1984 AACS; 1996 AACS; 2021 MR 23, Eff. 12/10/2021