the benefits of an insolvent self-insurer.
What happens when a self-insurer defaults on (stops paying) workers'
compensation benefits and assessments?When a self-insurer stops
paying workers' compensation benefits or assessments, and the default is
not due to a claims administration decision, the department will take
over its surety and claims.
(2) If a defaulting
self-insurer has multiple types of surety, who determines the order in
which surety will be used? The department has the sole authority to
determine the order in which surety types will be used.
(3) What happens if the defaulting self-insurer's surety is
exhausted? When surety is exhausted, the insolvency trust (all
self-insurers except school districts, cities and counties) will be
assessed quarterly to cover the claim costs paid on behalf of the
(4) Who is on the insolvency
trust board? The insolvency trust board consists of the director or
designee, three representatives of self-insured employers and one
representative of workers. Representatives are nominated by the
self-insured and labor communities and are appointed by the director for
overlapping two year terms.
(5) What does the
insolvency trust board do? The board advises the department on
insolvency trust matters. The department makes all final decisions.
(6) What annual report is provided on the insolvency trust
fund? The department provides an annual written status report on
the insolvency trust fund as of the end of the previous calendar year to
the workers' compensation advisory committee. The report is presented
at the committee's first quarterly meeting no later than March 31.
[Statutory Authority: RCW 51.04.020,
06-06-066, § 296-15-181, filed 2/28/06, effective 4/1/06. Statutory
Authority: RCW 51.14.077,
99-23-107, § 296-15-181, filed 11/17/99, effective 12/27/99.]