(a)

1. (1) Pursuant to the provisions of Arkansas Code § 11-9-408(d), as added by Acts 1993, No. 796, § 12, and Arkansas Code § 23-67-211, as added by Acts 1993, No. 1269, § 1, the plan administrator shall develop and administer a plan for the issuance of multiple coordinated policies of workers' compensation and employers' liability insurance subject to the approval of the Insurance Commissioner.
2. (2) Such multiple coordinated or group policies may only be issued to cover groups containing no fewer than five (5) separate employers who shall not be affiliated with one another in terms of ownership, control, or right to participate in the profits of an affiliated enterprise.
3. (3) The sponsor or administrator of such policies must either be a general contractor meeting the financial capacity and continuity guidelines as shall be set forth in the rating plan and approved by the commissioner or a recognized industry association that is incorporated or organized as a not-for-profit corporation or association and that has been in existence for no fewer than three (3) years prior to application for approval as a sponsor.

4. (4) Further:

   1. (A) Each employer within the association or group must be engaged in the same general business activity as determined by the plan administrator and within the principles and guidelines of the Scopes of Basic Manual Classifications as published from time to time by the National Council on Compensation Insurance, Inc., or some such similar classification system as may be chosen by the commissioner, such as the Standard Industrial Classifications Manual;
   2. (B) The sponsor assumes joint responsibility with each of the employers for the payment of all required premium, including deposit, and agrees in writing to subject itself to audit and review of all of his or her records and practices relating to the business to which the association or multiple coordinated policies shall pertain; and
   3. (C)

(i) The sponsor provides the plan administrator with such additional security in the way of cash deposit, marketable securities, or a letter of credit from a national banking association unaffiliated with the sponsor as the plan administrator reasonably deems necessary.

1. (ii) The plan administrator may adjust the amount of the required additional deposit from time to time depending upon the claim experience of the association groups and the audited and collected premium.

(b)

1. (1) Multiple coordinated policies shall be issued in the name of each employer but delivered to the sponsor, and all premiums shall be calculated upon the wages paid to or received by the employers in accordance with plan rules.
2. (2) All claims experience shall be identified to each employer and records maintained relative thereto by the plan administrator, including experience modifiers as appropriate.