§ 28-47-2 - Adoption of plan of group self-insurance.
SECTION 28-47-2
§ 28-47-2 Adoption of plan of groupself-insurance. – Any group consisting exclusively of employers may adopt a plan for groupself-insurance, as a group, for the payment of compensation under this chapterto their employees. Under that plan the group shall assume the liability of allthe employers within the group and pay all compensation for which thoseemployers are liable under this chapter. Notwithstanding the previousprovisions, the members of a group self-insurer shall be jointly and severallyliable for all of the obligations of the group self-insurer incurred during theperiod of membership. Where that plan is adopted the group shall furnishsatisfactory proof to the director of its financial ability to pay thatcompensation for the employers in the industry covered by it, its revenues,their source, and assurance of continuance. The director shall require thefiling of a bond of a surety company authorized to transact business in thestate, trust fund, or other adequate security, in an amount to be determined bythe director to secure its liability to pay the compensation of each employeras above provided in accordance with the provisions of § 28-47-10. Thatsurety bond, trust fund, or security must be approved as to form by thedirector. The director may also require that any and all agreements, contracts,and other pertinent documents relating to the organization of the employers inthe group be filed with him or her at the time the application for groupself-insurance is made. That application shall be on a form prescribed by thedirector. The director shall have the authority to deny the application of thegroup to pay the compensation or to revoke his or her consent furnished underthis section at any time for good cause shown. The director shall have theauthority to deny the application of the group or to revoke his or her consentfurnished under this section at any time if he or she is not satisfied that thegroup can provide adequate claims and loss prevention services to each employerin the group either by the staff of the group or through contractualarrangements with a service company competent to provide that claim and lossprevention services. The group qualifying under this section shall be known asa group self-insurer.