Workers' Compensation?General.? Workers who, in the course of employment, are injured or disabled from an occupational disease are entitled to workers' compensation benefits, which may include medical, temporary time-loss, vocational rehabilitation benefits, and permanent disability benefits.? The Department of Labor and Industries (L&I) administers the state's workers' compensation system.? In Washington, all employers must provide workers? compensation coverage for their employees either by:
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Self-Insured Employers.? Self-insurance is a program in which the employer covers all costs associated with an on-the-job injury or occupational disease. ?Self-insured employers administer their own claims, and must maintain records of all payments and disputes. Self-insured employers may contract with certain third-party administrator to administer claims.
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An employer may qualify as a self-insurer by establishing to L&I's satisfaction that the employer has sufficient financial ability to make certain the prompt payment of all workers' compensation benefits and all assessments which may become due from the employer. ?A self-insurer may be required by the L&I director (Director) to supplement existing financial ability by an escrow deposit, or a surety bond, or provide an irrevocable letter of credit.? The Director may issue a certification to an employer qualified as a self-insurer.? The certification remains in effect until withdrawn by the?Director or surrendered by the employer with the?Director?s approval.
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State law authorizes certain public employers to form self-insurance groups. There are three categories of self-insurance groups: (1) school districts or educational service districts, (2) public hospital districts or hospitals, and (3) private hospitals. ?A self-insurance group is considered to be the employer for purpose of workers' compensation, and must comply with certain L&I requirements.
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Decertification.? Certification of a self-insurer must be withdrawn when the self-insurer:
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The?Director may delay withdrawing the certification of the self-insured municipal employer while the employer has an enforceable contract with a licensed third-party administrator that may not be legally terminated. However, the self-insured municipal employer may not renew or extend the contract.
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Claims After Decertification. ?Self-insured employers have a long-term obligation to pay benefits during the lifetime of their claims. ?This obligation remains the employer's responsibility whether the self-insurance certification continues to be in effect or is surrendered or terminated. Whenever workers? compensation is not paid because of a self-insurer?s uncorrected default, the compensation is paid from the medical aid and accidents funds, and any moneys obtained from the bonds or other security are deposited to the funds for the payment of compensation and administrative costs, including attorneys' fees.?
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A self-insurers' insolvency trust provides for the unsecured benefits paid to the injured workers of self-insurers for insolvent or defaulting self-insurers and for L&I's associated administrative costs. ?The insolvency trust is funded by an insolvency assessment levied on a post-insolvency basis and after the defaulting self-insured employer's security deposit, assets, and reinsurance have been exhausted. Insolvency assessments are imposed on all self-insurers, except school districts, cities, and counties.?
If a self-insurance group or self-insured county, city, or other municipal employer has its self-insurer status terminated, L&I must fulfill the self-insurer?s obligations, including paying compensation. The decertified group or municipal employer remains liable to L&I and must reimburse L&I for all payments made through quarterly charges.
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L&I must adopt rules for these requirements, including the continuing obligations of decertified self-insurers and methods of how the self-insurers must meet the financial obligations.