Michigan Laws 418.501a – Liability of self-insurer’s security fund; termination on January 1, 2020; responsibility of PEGSISF on and after January 1, 2020; assessment
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Terms Used In Michigan Laws 418.501a
- director: means the director of the bureau or his or her duly authorized representative. See Michigan Laws 418.201
- PEGSISF: means the fund created in subsection (4). See Michigan Laws 418.501
- Self-insurer: means either of the following:
(i) An individual employer authorized to carry its own risk. See Michigan Laws 418.601
(1) The liability of the self-insurers’ security fund under this act for any payment of claims made against a self-insured member of a private employer group self-insurer terminates on January 1, 2020. The PEGSISF is responsible for payment of eligible claims made against the PEGSISF on and after January 1, 2020, and for claims against a private employer group self-insurer for which the self-insurers’ security fund was formerly liable under this act.
(2) If the director determines that a trust established under R 408.43s(2) of the Michigan administrative code is reasonably likely to be insufficient to fulfill the liability for claims made against the self-insured members of a private employer group self-insurer before January 1, 2020, the director may assess all private employer group self-insurers based on the proportion of the total paid losses, as defined in section 551(3)(b), of each private employer group self-insurer paid in the prior year to cover the cost of benefits incurred. An assessment made under this subsection is payable to the trust to satisfy liability for those claims.