S.C. Code Regs. § § 67-1505

Current through Register Vol. 48, No. 10, October 25, 2024

Section 67-1505 - Proof of Compliance, Surety Bond

A. File a Form 8, Proof of Compliance, Surety Bond, with the Self-Insurance Division within the time provided in R.67-1502B. The amount of the bond is determined by the Commission based on an analysis of the total self-insurance program including but not limited to an analysis of the applicant's excess insurance, loss history, and financial condition.

B. The minimum bond amount is two hundred and fifty thousand dollars.

C. The following provisions shall apply to a bond.

(1) The bonding company must be licensed by the South Carolina Department of Insurance.

(2) The bond shall be deemed continuous beginning with the date of contingent approval of the self-insurance program and continuing until sixty days after a written notice of cancellation is reviewed by the Self-Insurance Division.

(3) When the Self-Insurance Division receives a bond cancellation notice, the self-insured is notified to replace the bond before the expiration of the original bond. The Commission shall institute revocation proceedings upon the failure to renew or replace the bond as described in R.67-1513.

D. When a self-insurer loses or withdraws its privilege of self-insurance, the bond remains with the Commission to guarantee payment of any claims occurring during the self-insured period.

(1) The Commission may release the bond, or any part thereof, when the Commission determines that all contingent liability arising during the period of self-insurance has expired.

(2) The employer or fund may request the release of a bond, or any part thereof, by writing to the Self-Insurance Division. The Self-Insurance Division shall notify the employer or fund of its administrative determination. If the employer or fund disagrees with the administrative determination, the employer or fund may request a hearing by filing a motion for a hearing according to R.67-215. The parties shall proceed according to Article 6.

S.C. Code Regs. § 67-1505

Amended by State Register Volume 30, Issue No. 5, eff May 26, 2006.