What factors does the Bureau of Workers’ Compensation consider in determining whether an applicant has the financial ability to self-insure?
A. In determining whether an applicant has the financial ability to self-insure, the Bureau first considers whether an applicant has the financial resources and capacity to liquidate easily the liability it could incur as a self-insurer, including the liability resulting from a catastrophe. The Bureau analyzes the applicant’s liquid assets, exposure to large losses, and excess insurance protection in making this determination. A successful applicant for self-insurance must also show that its current long-term financial condition and solvency indicates that it will be available and able to liquidate in the future the liability incurred as a self-insurer. The Bureau performs an analysis of an applicant’s audited financial statements and reviews other financial information in its consideration of an applicant’s financial health.
Related Questions
- Are any other factors about general business practices considered by the Department in determining the qualifications of an applicant agency?
- How much money is required to be in a financial institution that will establish proof of financial ability to operate for the applicant ?
- What factors are considered when determining the Additional Compensation Grant?
