H-1437              _______________________________________________

                                                    HOUSE BILL NO. 935

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Lux, Appelwick, Jacobsen, Cole and Gallagher

Read first time 2/16/87 and referred to Committee on Commerce & Labor.

AN ACT Relating to self-insurers' claims administration; and amending RCW 51.14.030.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 28, chapter 289, Laws of 1971 ex. sess. as amended by section 10, chapter 323, Laws of 1977 ex. sess. and RCW 51.14.030 are each amended to read as follows:

          The director may issue a certification that an employer is qualified as a self-insurer when such employer meets the following requirements:

          (1) He or she has fulfilled the requirements of RCW 51.14.020.

          (2) He or she has submitted to the department a payroll report for the preceding consecutive twelve month period.

          (3) He or she has submitted to the department a sworn itemized statement accompanied by an independent audit of the employer's books demonstrating to the director's satisfaction that the employer has sufficient liquid assets to meet his or her estimated liabilities as a self-insurer.

          (4) He or she has demonstrated to the department the existence of the safety organization maintained by him or her within his or her establishment that indicates a  record of accident prevention.

          (5) He or she has submitted to the department a description of the administrative organization to be maintained by him or her within the employer's business to manage industrial insurance matters including:

          (a) The reporting of injuries;

          (b) The authorization of medical care;

          (c) The payment of compensation;

          (d) The handling of claims for compensation;

          (e) The name and location of each business location of the employer; and

          (f) The qualifications of the personnel of the employer to perform this service.

          Such certification shall remain in effect until withdrawn by the director or surrendered by the employer with the approval of the director.  An employer's qualification as a self-insurer shall become effective on the date of certification or any date specified in the certificate after the date of certification.