for a public entity's self insurance program.
(1) How does the department determine the
required surety level for a public entity? The required surety
level for a public entity will be its estimated claim costs for all
claims during the upcoming fiscal year. The minimum surety amount will
be determined annually by the department.
(2) How does a
public entity provide surety? By July 1 of each year, each public
entity must submit its public entity surety certification. A public
entity's surety certification must demonstrate that it has sufficient
revenues in its next budget to meet its estimated claim costs for the
next fiscal year by documenting:
(a) The estimated claim
(b) Source of revenues, detailing accounts
identified for self insurance obligations; and
(c) How the
cumulative reserve (twenty-five percent of the required surety) is
funded. Show the account balance.
(3) What type of
surety may a public entity use for its cumulative reserve? A public
entity may provide surety for its cumulative reserve using any of the
surety types listed in WAC 296-15-221.
[Statutory Authority: RCW 51.14.077,
. 99-23-107, § 296-15-151, filed 11/17/99, effective 12/27/99.]