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Rule Title: RENEWAL REQUIRED
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Department: LABOR AND INDUSTRY
Chapter: WORKERS' COMPENSATION AND OCCUPATIONAL DISEASE
Subchapter: Plan 1 Self-Insurance
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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24.29.623    RENEWAL REQUIRED

(1) An employer who has been self-insured may renew the election each ensuing year, by meeting all the requirements of these rules, except that the claims summary required in ARM 24.29.617(1)(e) must be a claims summary for the preceding year(s) for claims incurred as a self-insurer in Montana. Application for renewal must be made 60 days prior to the renewal date, or on such other date as determined by the department and the guaranty fund.

(a) In addition to the other information required in ARM 24.29.617, except as provided by (1)(b), the employer shall submit an independent actuarial analysis for the preceding year, completed by a qualified actuary as defined by the American Academy of Actuaries. The analysis must include, but is not limited to, a reserve analysis that includes all self-insured periods in Montana, through the most recent calendar year. Except as provided by (1)(c), the results of the analysis must be summarized at the low level, middle (or expected) level, and high level, with the corresponding confidence level expressly stated for each.

(b) The department may waive the requirement of (1)(a) with the concurrence of the guaranty fund.

(c) If the self-insurer believes a different actuarial methodology other than that of confidence level is better for its business needs, the self-insurer in association with its independent actuary must present facts to the department that substantiate its position before it receives approval from the department, with the concurrence of the guaranty fund, to use that different methodology.

(2) An employer group which has elected to be bound by plan no. 1 may renew the election for each ensuing year by meeting all the requirements of these rules, except ARM 24.29.618(1)(c), (1)(d), (1)(e), (1)(f), (1)(g), (1)(l), (1)(m), (1)(q), (1)(r), (1)(s), (1)(t), (1)(u), and (1)(v). Application for renewal must be made at least 60 days prior to the renewal date or on such other date as determined by the department and the guaranty fund. In addition to the information required in ARM 24.29.618, the employer group shall submit:

(a) a copy of the preceding year's audited financial statements for the self-insured group;

(b) a claims summary for the preceding years for claims incurred as a self-insurer in Montana; and

(c) an independent actuarial analysis for the preceding year, completed by a qualified actuary, as defined by the American Academy of Actuaries. Except as provided by (2)(d), the results of the analysis must be summarized at the low level, middle (or expected) level, and high level, with the corresponding confidence level expressly stated for each. The analysis must include, but is not limited to:

(i) a reserve analysis that includes all self-insured periods in Montana, through the most recent calendar year; and

(ii) a premium/rate analysis that projects the total premium need and average rate for the upcoming year which is adequate to cover:

(A) all expected workers' compensation liability costs, whether past, present, or future, with respect to claims previously incurred or claims expected to be incurred in the upcoming year; and

(B) administrative expenses.

(d) If the self-insured group believes a different actuarial methodology other than that of confidence level is better for its business needs, the self-insured group in association with its independent actuary must present facts to the department that substantiate its position before it receives approval from the department, with the concurrence of the guaranty fund, to use that different methodology.

(3) If a self-insurer does not renew its election, the employer(s) shall elect to be bound by compensation plan no. 1, plan no. 2, or plan no. 3 on the effective date of the termination of permission to self-insure.

History: 39-71-203, MCA; IMP, 39-71-403, 39-71-2104, MCA; NEW, 1996 MAR p. 1151, Eff. 5/1/96; AMD, 2012 MAR p. 1666, Eff. 8/24/12.


 

 
MAR Notices Effective From Effective To History Notes
24-29-263 8/24/2012 Current History: 39-71-203, MCA; IMP, 39-71-403, 39-71-2104, MCA; NEW, 1996 MAR p. 1151, Eff. 5/1/96; AMD, 2012 MAR p. 1666, Eff. 8/24/12.
5/1/1996 8/24/2012 History: 39-71-203 MCA; IMP, 39-71-403 and 39-71-2104 MCA; NEW, 1996 MAR p. 1151, Eff. 5/1/96.
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