by a self-insurer.
(1) What is a
default? A default occurs when a self-insured employer no longer
provides benefits to its injured workers in accordance with Title 51 of
the Revised Code of Washington. A default can be a voluntary action of
the self-insured employer, or an action brought on by the employer's
inability to pay the obligation.
(2) What happens when the
department first learns a self-insured employer has defaulted on its
obligation? The department first corresponds with the self-insured
employer to determine if the self-insurer will resume the provision of
benefits. If the self-insurer does not respond to the department and
resume the provision of benefits within ten days, the self-insured
employer is determined to have defaulted.
(3) What happens
when the department confirms that a self-insurer has defaulted on its
obligation? There are two actions that the department takes when a
default by a self-insured employer is confirmed:
the department assumes jurisdiction of the claims of the defaulting
self-insurer and begins to provide benefits to those injured workers.
(b) Second, the department makes demand upon the surety provided
by that self-insurer for the full amount of the surety. The proceeds of
the surety are deposited with the department and accrue interest, which
will be used to supplement the surety in providing benefits to those
(4) What happens to a self-insured
employer's certification when it defaults? The employer surrenders its
self-insurance certification when it defaults. Any remaining employment
in the state would need industrial insurance coverage through the state
fund effective with the default by the employer.
[Statutory Authority: RCW 51.04.020,
06-07-141, § 296-15-125, filed 3/21/06, effective 5/1/06.]