Section 62-5-10 - Surety for performance required for self-insurers--Irrevocable trust.
62-5-10. Surety for performance required for self-insurers--Irrevocable trust. An employer seeking permission to be a self-insurer, or seeking renewal of its permission to be a self-insurer, shall furnish to the department, on a form required by the department, a bond, written by a surety company authorized by the division of insurance to write surety bonds, or cash, or a certificate of deposit, or approved government securities, or an irrevocable letter of credit, or an irrevocable trust, alone or in any combination, in a total amount equal to the greater of:
(1) Two hundred fifty thousand dollars; or
(2) Twice the amount of compensation and medical claims paid by the employer during the preceding calendar year; or
(3) The amount designated by the employer as a reserve for workers' compensation and medical claims.
The irrevocable trust as used in this section must be with a bank or trust company authorized to exercise trust powers under the laws of this state or the United States. The trust shall authorize distribution solely to the department if the employer defaults on its obligations under Title 62, or to the employer if the employer is no longer self-insured under the provisions of Title 62 to the extent the department determines that the security is not necessary, or to the employer if the employer complies with another method authorized by this section.
Source: SL 1989, ch 453, § 1; SL 1994, ch 400.