FINAL BILL REPORT

HB 2485

                                  C 209 L 90

BYRepresentatives Rector, Vekich, Prentice, Leonard, Jones and Dellwo

Qualifying as a self-insurer of industrial insurance.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Qualified employers are allowed to self-insure their workers' compensation programs.  To obtain certification as a self-insurer, an employer must establish to the director of the Department of Labor and Industries' satisfaction that the employer has sufficient financial resources to meet all present and future obligations under the industrial insurance law. The department may also require a self-insurer to supplement its financial ability by depositing cash, securities, or a surety bond in an escrow account.

Information contained in industrial insurance claim files is confidential.  Specific exemptions to the confidentiality requirement are provided for treating physicians, the worker's employer, and department personnel.  The injured worker may receive information from the file only through an authorized representative.

SUMMARY:

Beginning January 1, 1991, qualified self-insurers may choose the option of depositing an irrevocable letter of credit to guarantee their future ability to meet industrial insurance obligations.  The issuer of the letter of credit must be a state or federally chartered bank authorized to do business in Washington.  To qualify for the letter of credit option, self-insurers must have a net worth of not less than $500 million and meet any requirements adopted by the Department of Labor and Industries.  The option is not available to self-insurers who are public employers.

Injured workers may review their claim files if the director determines, pursuant to criteria in department rules, that the review is in the claimant's interest.

VOTES ON FINAL PASSAGE:

      House 98   0

      Senate    46     0

EFFECTIVE:June 7, 1990

            January 1, 1991 (Section 1)