Sec. 38a-1007. 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 workers' 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 member'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 Workers' 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 member's expense, unless the
group is notified sooner by the Workers' Compensation Commission that the cancelled
or terminated member has procured workers' compensation insurance, has become an
approved self-insurer or has become a member of another group.
(c) The group shall pay all workers' 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 workers'
compensation obligations of the group and its members which were incurred during the
cancelled or terminated member's period of membership.
(d) A group member shall not be relieved of its workers' compensation liabilities
incurred during its period of membership except through payment by the group or the
member of required workers' 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 workers' compensation benefits incurred during the insolvent or bankrupt member's period of membership.
(P.A. 96-267, S. 8.)