287.860. Guaranty association, created, all self-insured to be members--powers--withdrawing member, duties. - Missouri Statutes

Guaranty association, created, all self-insured to bemembers--powers--withdrawing member, duties.

287.860. 1. There is hereby created a not-for-profit corporation to beknown as the "Missouri Private Sector Individual Self-Insurers GuarantyCorporation", hereinafter referred to as "the corporation" whose domicile andvenue for service shall be Cole County, Missouri. Upon incorporation andadoption of bylaws, all individual self-insurers, as defined in section287.280, other than individual public sector self-insurers and individual andpublic group self-insurers, as defined in section 287.280 and section 537.620,RSMo, shall be and remain members of the corporation as a condition of theirauthority to individually self-insure in this state. The corporation shallperform its functions under a plan of operation as established and approved insection 287.870 and shall exercise its powers and duties through a board ofdirectors as established in section 287.862. The corporation shall have thosepowers granted or permitted general not-for-profit corporations, as providedfor in chapter 355, RSMo.

2. A member may voluntarily withdraw from the corporation when themember voluntarily terminates the self-insurance privilege and pays allassessments due to the date of such termination. However, the withdrawingmember shall continue to be bound by the provisions of sections 287.860 to287.885 relating to the period of its membership and any claims chargedpursuant thereto. The withdrawing member, who is or shall become a member onor after the incorporation, shall also be required to provide to the divisionof workers' compensation, hereinafter referred to as "the division" uponwithdrawal, and at twelve-month intervals thereafter, satisfactory proof thatit continues to meet the standards of section 287.280 or the rules promulgatedby the division under chapter 287 in relation to claims incurred while thewithdrawing member exercised the privilege of self-insurance. Such reportingshall continue until the withdrawing member satisfies the division that thereis no remaining value to claims incurred while the withdrawing member wasself-insured. If, during this reporting period, the withdrawing member failsto meet the standards of section 287.280 or the rules promulgated by thedivision under chapter 287, the withdrawing member who is a member on or afterthe incorporation, may at six-month intervals or other agreed upon intervalsthereafter be required by the division or by the corporation to provide to thedivision and to the corporation the certified opinion of an independentactuary who is a member of the American Society of Actuaries of the actuarialpresent value of the determined and estimated future compensation payments ofthe members for claims incurred while the member was a self-insurer. Witheach such opinion, the withdrawing member shall deposit with the divisionsecurity in an amount equal to the value certified by the actuary and of atype that is acceptable for qualifying security deposits under section287.280. The withdrawing member shall continue to provide such opinions andto provide such security until such time as the latest opinion shows noremaining value of claims. The corporation has a cause of action against awithdrawing member, and against any successor of a withdrawing member, whofails to timely provide the required opinion or who fails to maintain therequired deposit with the division. The corporation shall be entitled torecover a judgment in the amount of the actuarial present value of thedetermined and estimated future compensation payments of the withdrawingmember for claims incurred during the time that the withdrawing memberexercised the privilege of self-insurance, together with reasonable attorney'sfees and all costs pertaining thereto. For purposes of sections 287.860 to287.885, the "successor of a withdrawing member" means any person, businessentity, or group of persons or business entities, which holds or acquireslegal or beneficial title to the majority of the assets or the majority of theshares of the withdrawing member.

(L. 1992 H.B. 975)