PURPOSE: This rule outlines the requirements for employers that choose to self-insure their Workers’ Compensation claims on a group basis. 20 CSR 500-6

1. (1) This rule is intended to implement section 287.280, RSMo governing employers’ group self-insurance of Workers’ Compensation. The payroll, the experience and the premium of individual employers within a group are so diverse that they require the calculation of the premium applicable to individual employers within a group in order to determine the individual employer’s tax and Second Injury Fund surcharge liability.
2. (2) Employers that choose to self-insure as a group and qualify to do so shall be liable, either individually or as a group, for the payment of the Workers’ Compensation selfinsurance premium tax and Second Injury Fund surcharge certified by the director of the Missouri Department of Insurance (MDI).
3. (3) Qualified employers that choose to selfinsure as a group shall be responsible, either individually or as a group, for maintaining and reporting to the director of the Department of Insurance employer payroll records, medical and compensation paid and losses incurred, including reserves to or on behalf of injured employees.
4. (4) Qualified employers, either individually or as a group, shall compile, compute and submit premium tax and Second Injury Fund surcharge information in a prescribed manner on forms furnished by the director of the MDI.
5. (5) All records, reports, premium tax base and Second Injury Fund surcharge computations shall be submitted to the director of insurance by duly appointed administrators or elected officers who shall sign these records.
6. (6) The self-insurer shall collect and timely transfer to the director of revenue the surcharge required for the Second Injury Fund. The calculation for the Second Injury Fund surcharge shall be based upon premiums adjusted for experience modification, if any.
7. (7) An insurer may issue excess Workers’ Compensation insurance to self-insured employers upon such terms, conditions, benefits and premiums as permitted by law. Any insurer issuing such insurance may give the self-insured employer a credit against the premiums payable to such insurer to the extent of any premium taxes paid by the self-insured employer with respect to premium imputed for losses covered under the excess insurance.
8. (8) All payroll records, loss records, insurance rating and premium computations, and reserves are pertinent to the tax liability and Second Injury Fund surcharge liability of qualified self-insured employers. Consequently, they shall be subject to audit and examination by the director of insurance or his/her duly appointed representative.
9. (9) The reasonable expense for auditing the self-insurer’s records shall be charged to the self-insurer being audited; however, the selfinsurer shall be entitled to credit for these charges against the self-insurer’s compensation premium tax, provided that no credit shall be allowed if the self-insurer’s tax liability and Second Injury Fund surcharge liability have not been determined.

AUTHORITY: sections 287.280 and 374.045, RSMo Supp. 1997.* This rule was previously filed as 4 CSR 190-18.030. Original rule filed March 9, 1982, effective Aug. 12, 1982. Amended: Filed July 2, 1990, effective Dec. 31, 1990. Amended: Filed Sept. 11, 1997, effective March 30, 1998.

*Original authority: 287.280, RSMo 1939, amended 1957, 1965, 1974, 1980, 1981, 1993, 1995 and 374.045, RSMo 1967, amended 1993, 1995.