R 408.43g Group self-insurers' admission of new members; termination of individual members; notice; records.

Rule 13g. (1) After the inception date of the fund, prospective new members of the fund shall submit an application for membership to the board of trustees, or its designated representative, on a form approved by the agency. The board of trustees or its designated representative may approve the application for membership pursuant to the bylaws of the group self-insurers' fund. A copy of the original signed application for membership must then be filed with the agency in Lansing. Membership takes effect after approval by the agency. (2) After a group fund has completed 1 year of operation, application may be made to the director to authorize the group fund to accept new members without prior agency approval. The application must be submitted on forms provided by the agency and shall define all businesses that will be accepted in the same industry within the group. The application must define the financial standards that will be applied by the group in accepting new members. (3) If approved, the group shall submit confirmation of membership to the agency on form WC-650, or its electronic equivalent, group self-insurance fund notice of acceptance of membership, together with a copy of the individual membership application and the financial report provided by the member. If the employer is a partnership, the notice must state the names and addresses of all the partners. If the employer is doing business under an assumed name, the notice must state the assumed name and each Michigan location covered. If the employer is a corporation doing business through a number of divisions, the notice must state the names of all the divisions of the corporation. The agency must be notified when any group fund receives a change of address of a member. (4) Individual members may elect to terminate their participation in a group self- insurers' program or be subject to cancellation by the group pursuant to the bylaws of the group fund. However, termination or cancellation may occur not less than 20 days after the agency has received notice of the termination or cancellation from the group fund reported to the agency on form WC-651, or its electronic equivalent, group self-insurance fund notice of termination of membership. If the employer is a partnership, the notice must state the names and addresses of all the partners. If the employer is doing business under an assumed name, the notice must state the assumed name and the names of all parties doing business under the assumed name. If the employer is a corporation doing business under a number of divisions, the notice must state the names of all the divisions of the corporation. If a business changes names, notice must be given stating both the new and former names. (5) The chairman of the board of trustees or, at the chairman's designation, the administrator shall be responsible for maintaining all records of the fund. The fund shall maintain all of the following documents, or their electronic equivalents, with respect to records: (a) Forms WC-100, 101, 102, WC-701, and WC-107. (b) Redemption papers. (c) Excess workers' compensation policies. (d) Spreadsheets containing premium audit summaries. (e) Contracts with the group's claims service and administrator. (f) A complete set of claim loss runs as of the end of each fiscal year. (g) Certified audit reports. (h) Minutes of trustee and annual meetings. (i) Group renewal applications and related documents. (j) Individual membership applications containing signed indemnity agreements. The records must be retained for not less than 30 years and the administrator or board of trustees shall know the location of the records at all times. All records of the fund are the property of the fund. If the records are held by the funds service company, the records must immediately be surrendered to the fund upon the fund's request.