Employers to provide security instrument

The organization may require an employer to provide a bond, letter of credit, cash deposit, or other security instrument approved by the organization to guarantee payment of workers' compensation premium. The required security instrument is in addition to any other required installment payment obligations. 1. A security instrument or cash deposit may be required when: a. The employer does not have a permanent place of business in this state; b. The employer is not a resident of this state; c. The employer does not have a payment history or previously underwritten account with the organization; or d. The employer has a previous delinquency with the organization. 2. The security required by an employer may be the amount of premium calculated for the applicable premium year. The security amount may be adjusted by the organization based on changes in premium and anticipated payroll. The organization may consider all aspects of an employer's account, including premium, rate classifications, and premium and assessment delinquencies to determine the security required. 3. Failure to provide a security instrument as required by the organization results in the employer being deemed uninsured and in default. 4. The organization may permit withdrawal of the security if the employer has made all premium and assessment payments timely for two policy periods and complied with all requirements of the organization. 5. Once an employer account is in a closed status, and any balance due on the account is paid, the security instrument will be released.