What happens if the defaulting self-insurers surety is exhausted?
When surety is exhausted, the insolvency trust (all self-insurers except school districts, cities and counties) will be assessed quarterly to cover the claim costs paid on behalf of the defaulted self-insurer. (4) Who is on the insolvency trust board? The insolvency trust board consists of the director or designee, three representatives of self-insured employers and one representative of workers. Representatives are nominated by the self-insured and labor communities and are appointed by the director for overlapping two year terms. (5) What does the insolvency trust board do? The board advises the department on insolvency trust matters. The department makes all final decisions. (6) What annual report is provided on the insolvency trust fund? The department provides an annual written status report on the insolvency trust fund as of the end of the previous calendar year to the workers’ compensation advisory committee. The report is presented at the committee’s first quarterly meeting no
