Oregon Revised Statutes Chapter 656 § 656.430 — Certification of self-insured employer; employer groups; insurance policy

Certification of self-insured employer; employer groups; insurance policy requirements; revocation of certification; rules. (1) Upon determining that an employer has qualified as a self-insured employer under ORS 656.407, the Director of the Department of Consumer and Business Services shall issue a certificate to that effect to the employer. (2) Coverage of a self-insured employer is effective on the date of certification unless a later date is specified in the certificate. (3) Two or more entities may not be included in the certification of one employer unless in each entity the same person, or group of persons, or corporation owns a majority interest. If an entity owns a majority interest in another entity which in turn owns the majority interest in another entity, all entities so related may be combined regardless of the number of entities in succession. If more than one entity is included in the certification of one employer, each entity included is jointly and severally liable for any compensation and other amounts due the Department of Consumer and Business Services under this chapter by any entity included in the certification. (4) In the term “majority interest,” as used in this section, “majority” means more than 50 percent. (5) If an entity other than a partnership: (a) Has issued voting stock, “majority interest” means a majority of the issued voting stock; (b) Has not issued voting stock, “majority interest” means a majority of the members; or (c) Has not issued voting stock and has no members, “majority interest” means a majority of the board of directors or comparable governing body. (6) If the entity is a partnership, majority interest must be determined in accordance with the participation of each general partner in the profits of the partnership. (7)(a) Notwithstanding any other provision of this section, the director may certify five or more subject employers as a self-insured employer group, which is an employer for purposes of this chapter, if: (A) The director finds that the employers as a group meet the requirements of ORS 656.407 (1)(b), (2) and (3); (B) The director determines that the employers as a group meet the insurance coverage retention and combined net worth requirements adopted by the director by rule; (C) The director finds that the grouping is likely to improve accident prevention and claims handling for the employer; (D) Each employer executes and files with the designated entity a written agreement, in such form as the director may prescribe, in which: (i) The employer agrees to be jointly and severally liable for the payment of any compensation and other amounts due to the Department of Consumer and Business Services under this chapter incurred by a member of the group; or (ii) The employer, if a city, county, special district described and listed in ORS 198.010 or 198.180, translator district formed under ORS 354.605 to 354.715, weed control district organized under ORS 569.350 to 569.445, intergovernmental agency created under ORS 225.050, school district as defined in ORS 255.005, public housing authority created under ORS chapter 456 or regional council of governments created under ORS chapter 190, agrees to be individually liable for the payment of any compensation and other amounts due to the department under this chapter incurred by the employer during the period of group self-insurance; (E) The director finds that the employer group is organized as a corporation or cooperative pursuant to ORS chapter 60, 62 or 65, is an intergovernmental entity created under ORS 190.003 to 190.130 or is a self-insurance program under ORS 30.282 (3), and the bylaws of the employer group require the employer group to obtain fidelity bonds; (F) The director finds that the employer group has designated an entity responsible for: (i) Centralized claims processing in accordance with paragraph (b) of this subsection; and (ii) Payroll records, safety requirements, recording and submitting assessments and contributions and making such other reports as the director may require; and (G) The employer has presented a method approved by the director to notify the department of: (i) The commencement or termination of membership by employers in the group, and the effect thereof on the net worth of the employers in the group; and (ii) Whether an employer who terminates membership in the group continues to be a subject employer; and (b) Except for employer groups composed of cities, counties, special districts created under ORS 198.010, intergovernmental agencies created under ORS 225.050, school districts as defined in ORS 255.005, public housing authorities created under ORS chapter 456 and regional councils of governments created under ORS chapter 190, a group administrator may not be a group member or a member of the board of the group. (8) A self-insured employer must have excess insurance coverage appropriate for the emplo