Connecticut General Statutes as amended to January 1, 2019
Requirements for an employer to join group after its approval. Termination of membership. Insolvency or bankruptcy of member.
Sec. 38a-1007. Requirements for an employer to join group after its approval. Termination of membership. Insolvency or bankruptcy of member. (a) An employer joining a workersâ€™ compensation self-insurance group after the group has been issued a certificate of approval shall: (1) Submit an application for membership to the board of trustees or its administrator; and (2) enter into the indemnity agreement required by subparagraph (B) of subdivision (5) of subsection (b) of section 38a-1003. Membership takes effect no earlier than each memberâ€™s date of approval. The application for membership and its approval shall be maintained as permanent records of the board of trustees.
(b) Individual members of a group shall be subject to cancellation by the group pursuant to the bylaws of the group. In addition, individual members may elect to terminate their participation in the group. The group shall notify the Commissioner and chairman of the Workersâ€™ Compensation Commission of a termination or cancellation of a member within ten days and shall maintain coverage of each cancelled or terminated member for thirty days after notice, at the terminating memberâ€™s expense, unless the group is notified sooner by the Workersâ€™ Compensation Commission that the cancelled or terminated member has procured workersâ€™ compensation insurance, has become an approved self-insurer or has become a member of another group.
(c) The group shall pay all workersâ€™ compensation benefits for which each member incurs liability during its period of membership. A member who elects to terminate its membership or is cancelled by a group remains jointly and severely liable for workersâ€™ compensation obligations of the group and its members which were incurred during the cancelled or terminated memberâ€™s period of membership.
(d) A group member shall not be relieved of its workersâ€™ compensation liabilities incurred during its period of membership except through payment by the group or the member of required workersâ€™ compensation benefits.
(e) The insolvency or bankruptcy of a member shall not relieve the group or any other member of liability for the payment of any workersâ€™ compensation benefits incurred during the insolvent or bankrupt memberâ€™s period of membership.
(P.A. 96-267, S. 8.)