If an employer currently or formerly exempted from the duty to insure by written order of the department under s. 102.28 (2) (b), Stats., is unable to pay any award and if judgement is rendered in accordance with s. 102.20, Stats., against that employer and returned unsatisfied in whole or in part, the department shall determine payment into the fund established by s. 102.28 (8), Stats., as follows:

1. (1) The department shall prepare an estimate of the payments that should be made by the insolvent exempt employer due for the period up to the date of the order from the department and for one year following the date of the order. If the department elects to retain an insurance carrier or insurance service organization under s. 102.28 (7) (c), Stats., the department will prepare an estimate of the charges that will be made by such carrier or organization to process, investigate and pay such claims for the same period. The sum of these 2 amounts shall be prorated on the basis of the gross payroll for this state of each exempt employer as reported to the department for the previous calendar year for unemployment insurance purposes under ch. 108, Stats., or, if an exempt employer is not covered under ch. 108, on the basis of the comparable gross payroll for the exempt employer as determined by the department.
2. (2) The department shall assess and order payment within 30 days by each exempt employer the amount determined under sub. (1) to the state treasurer for deposit in the fund created by s. 102.28 (8), Stats.
3. (3) The department shall prepare an estimate of the total remaining liability of the insolvent exempt employer and an estimate of the amount that may be recovered from that employer, its receiver or trustee in bankruptcy. Such estimates shall be communicated to all exempt employers.
4. (4) For any further assessment following the initial order the department shall estimate the amount due and payable during the following year and the charges expected from any insurance carrier or insurance service organization for such year and assess and order payment by each such exempt employer as provided by s. 102.28 (7) (b), Stats.
5. (5) At the time orders are issued under sub. (4) the department shall prepare an estimate of the remaining liability of the insolvent exempt employer and the amount that may reasonably be expected to be recovered from such employer, its receiver or trustee in bankruptcy. Such estimates will be communicated to all exempt employers.
6. (6) All money due and payable to injured employees which remain unpaid shall be considered money payable for making future estimates.
7. (7) All money recovered by the attorney general and paid into the fund shall be used in the payment of unpaid claims and shall be taken into account in making estimates and assessments.
8. (8) The department may not require the state or any local governmental unit that has independent taxing authority that elected to be self-insured under s. 102.28 (2) (bm), Stats., to make any payments into the fund established under s. 102.28 (8), Stats., or for that fund to make any payments for the liability of the state or any local governmental unit that has independent taxing authority under ch. 102, Stats.

History

History: Cr. Register, September, 1986, No. 369, eff. 10-1-86; CR 25-005: am. (intro.), (1), (4), (6), cr. (8) Register July 2025 No. 835, eff. 8-1-25.