1. (a) An employer may apply for authorization to self-insure the employer's obligations under the Act if the employer has

   1. (1) been in business within this state for at least the five years immediately preceding the filing of the present application for self-insurance authorization;
   2. (2) safety and loss control programs;
   3. (3) in combination with the employer's parent company or subsidiary companies of the employer, a minimum of 100 employees either in this state or in another state or states; and
   4. (4) a tangible net worth of at least $10,000,000.

2. (b) An employer that meets the application requirements may qualify to self-insure the employer's obligations under the Act if the employer provides satisfactory proof to the board that the employer has

   1. (1) the financial ability to meet current and future obligations under the Act;
   2. (2) available claims facilities through the employer's staffed adjusting facilities located within this state through independent, licensed, resident adjusters with power to effect settlement within the state; for purposes of this paragraph, insurance companies with a certificate of authority from the division of insurance, Department of Commerce, Community, and Economic Development, and with staff adjusters in this state, are considered independent, licensed, resident adjusters; and
   3. (3) agreed to post any security deposit required.

3. (c) The board may waive the requirement in (a)(1) of this section if the employer

   1. (1) has self-insured the employer's workers' compensation obligations in another jurisdiction for at least the five years immediately preceding the filing of the present application for self-insurance authorization; or
   2. (2) is a wholly-owned subsidiary and the employer's parent company has been in business for at least the five years preceding the filing of the present application for self-insurance authorization and guarantees the subsidiary's obligations under the Act.
4. (d) An employer that is a majority or wholly-owned subsidiary must have the employer's obligations under the Act guaranteed by the employer's parent company.

(Eff. 11/20/83, Register 88; am 6/20/2010, Register 194)

Authority: AS 23.30.005, AS 23.30.075, AS 23.30.090, AS 44.31.020