HomeMy WebLinkAboutResolutions 2006 (22) RESOLUTION AUTHORIZING CONTINUANCE OF SELF - INSURED WORKER'S
COMPENSATION PROGRAM
Resolution No. as (aOCR
St. Croix County, Wisconsin
WHEREAS, the Wisconsin Worker's Compensation Act (Act) provides that an
employer covered by the Act either insure its liability with a worker's compensation
insurance carrier authorized to do business in Wisconsin, or be exempted from insuring
liabilities with a carrier and assume the responsibility for its own worker's compensation
risk and payment (self- insure); and
WHEREAS, St. Croix County is an employer covered by the Act; and
WHEREAS, the State and its political subdivisions may self- insure worker's
compensation without a special order from the Department of Workforce Development
(Department) if they agree to report faithfully all compensible injuries and agree to
comply with the Act and rules of the Department (Wisconsin Administrative Code sec.
DWD 80.60(3)); and
WHEREAS, the Finance Committee recommends the continuation of the County's
self- insured worker's compensation program.
THEREFORE, be it resolved by the St. Croix County Board of Supervisors as
follows:
1) That St. Croix County will continue the self- insured worker's compensation
program that is currently in effect.
I
2) A certified copy of this resolution will be forwarded to the Worker's
Compensation Division, Wisconsin Department of Workforce Development.
Offered by the Finance Committee.
NEGATIVE AFFIR TIVE
V
Reviewed by Corporation Counsel on
Greg merman, Corporation Counsel
This Resolution was adopted by the St. Croix County Board of Supervisors on April 18, 2006
Cindy Camp ell, County Clerk
DWD 80.49 WISCONSIN ADMINISTRATIVE CODE 16
Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.
timely, good- faith, written offer of an alternative retraining pro- DWD 80.52 Payment of permanent disability where
gram without reasonable cause. the degree of permanent is disputed. Where in' is
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(11) SPECIALIST'S SERVICES. (a) A specialist shall develop an conceded, but the employer or the employer's insurer disputes the
individualized written rehabilitation program for a retraining pro- extent of permanent disability, payment of permanent disability
gram for the employee, and may amend it to achieve suitable shall begin with the later of sub. (1) or (2):
employment. (1) Within 30 days of a report that provides the permanent dis -
(b) A specialist shall make periodic written reports at reason- ability rating, in the amount of the permanency set forth in the
able intervals to the employee, employer and insurance carrier report; or
describing vocational rehabilitation activities which have (2) Within 30 days after the employer or insurer receives a
occurred during that interval. report from an examination performed under s. 102.13 (1) (a),
(c) Within a reasonable period of time after receiving a written Stats., in the amount of the permanent disability found as a result
request from an employee, employer, worker's compensation of that medical examination, if any. If such an examination had not
insurance carrier or department or their representatives, a special- previously been performed, the employer or employer's insurer
ist shall provide that person with any information or written mate- must give notice of a request for such an examination within 30
rial reasonably related to the specialist's services to the employee days of receiving a report that establishes the permanent disability
undertaken as a result of any injury for which the employee claims under sub. (1). If a report from the examination is not available
compensation. within 90 days of the request for the examination, the employer
History: Cr. Register, September, 1982, No. 321, eff. 10 -1 -82; emerg. arr. (2), r. and insurer shall begin payment of the permanent disability set
(3), renum. (4) to be (3), cr. (4) to (11), eff. 11 -7-94, am. (2), r. (3), renum. (3) to be forth in the report under sub. (1).
(4) and am., cc (4) to (11), Register, April, 1995, No. 472, eff. 5 -1-95• corrections History: CR 03 -125: cr. Register June 2004 No. 582, eff. 7 -1 -04.
in (2) and (5) (a) 2. made under s. 13.93 (2m) (b) 7., Stats., Register, July, 1996, No.
487; eff. 8 -1 -96; corrections made under s. 13.93 (2m) (b) 6., Stats., Register,
December, 1997, No. 504. DWD 80.60 Exemption from duty to insure (self -in-
surance). (1) DEFINITIONS. In this section:
DWD 80.50 Computation of permanent disabilities. (a) "Applicant" means a business entity applying for self -in-
(1) In computing permanent partial disabilities, the number of surance.
weeks attributable to more distal disabilities shall be deducted (b) "Divided- insurance" means consent to the issuance of 2 or
from the number of weeks in the schedule for more proximal dis- more policies, as provided in s. 102.31 (1), Slats.
abilities before applying the percentage of disability for the more
proximal injury, except that: (c) "Employer" means a business entity or its parent guaran-
(a) Such a deduction shall not include multiple injury factors teeing payments.
under s. 102.53, Stats.; and (d) "Excess insurance" means catastrophic insurance for
(b) Such a deduction shall include preexisting disabilities. employers granted self - insurance, and is not full- insurance, self -
insurance, partial- insurance or divided- insurance.
(2) The number of weeks attributable to scheduled disabilities
shall be deducted from 1,000 weeks before computing the number (e) "Full- insurance" means the insurance of all liability by one of weeks due for a non - scheduled disability
resulting from the policy, as required in s. 102.31 (1) (a), Slats.
same injury. This deduction shall not include multiple injury fac- (0 "Partial- insurance" means self - insurance of a part of the
tors under s. 102.53, Stars. liability and consent to the issuance of one or more policies on the
(3) Multiple injury factors under s. 102.53, Stats., do not apply remainder of the liability, as provided in ss. 102.28 (2) (b) and
to compensation for disfigurement under s. 102.56, Stats. 102.31 (1), Stats.
History: Cr. Register, August, 1981, No. 308, eff. 9 -1 -81; r. and recr. Register, (g) "Self- insurance" means exemption from the duty to insure,
September, 1982, No. 321, ea: 10 -1 -82. as provided in s. 102.28 (2) (b), Stats.
(2) ExCESS INSURANCE. Excess insurance may be carried with -
DWD 80.51 Computation of weekly wage. Pursuant to out further order of the department or may be required by order of
s. 102. 11, Stats. the department as set forth in sub. (4) (d) 3. and 7.
(1) In determining daily earnings, if the number of hours a (3) REQUIREMENTS FOR THE STATE AND ITS POLITICAL SUBDIVI-
full -time employee worked had been either decreased or SIONS. (a) The state and its political subdivisions may self - insure
increased for a period of at least 90 total days prior to the injury, without farther order of the department, if they are not partially -
then this revised schedule worked during those 90 days shall be insured or fully - insured, or to the extent they are not partially -in-
considered to be normal full -time employment. cured by written order under s. 102.31 (1), Stats., under one or
(2) When an employee furnishes his or her truck to the more policies, and if they agree to report faithfully all compensa-
employer and is paid by the employer in gross to include operating ble injuries and agree to comply with ch. 102, Stats., and the rules
expenses, one -third of that gross sum is considered as wages of the department. However, any such employer desiring partial -
except as a showing is made to the contrary. insurance or divided - insurance must submit an application to the
(3) Prisoners injured in prison industries are considered to be department and be given special consent as described in s. DWD
earning the maximum average weekly earnings under the provi- 80.61.
sions of s. 102.11, Stats., except as a showing is made to the con- (b) 1. Any political subdivision or taxing authority of the state
trary. electing to self - insure shall notify the department in writing of the
(4) The 30 hour minimum workweek under s. 102.11 (1) (f), election before undertaking self - insurance, every 3 years after the
Stats., does not apply to a part-time employee unless the initial notice, and 30 days before withdrawing from the self- insur-
employee is a member of a regularly scheduled class of part-time ance program.
employees. In all other cases part-time employment is on the basis 2. The notice of election to self - insure shall be accompanied
of normal full -time employment in such job. However, this sub- by a resolution, adopted by the governing body and signed by the
section does not apply to part -time employees defined in s. 102.11 elected or appointed chief executive of the applying political sub -
(1) (f), Stats., who restrict availability on the labor market. As to division or taxing authority, stating its intent and agreement by the
the employees so defined, those wages will be expanded to the governing body to self - insure its worker's compensation liability
normal part-time or full -time wages unless the employer or insur- and an agreement to faithfully report all compensable injuries and
ance company complies with s. DWD 80.02 (2) (a). to comply with ch. 102, Stars., and the rules of the department in
History: Cr. Register, September, 1982, No. 321, eff. 10 -1 -82. accordance with s. 102.28 (2) (b) and (c), Stats.
Register, September, 2005, No. 597
s
17 DEPARTMENT OF WORKFORCE DEVELOPMENT DWD 80.60
Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.
(c) Self— insurance granted under par. (a) is subject to revoca- (b) The minimum requirements necessary for initial consider-
tion under s. 102.28 (2) (c), Stats. Once the privilege of self — insur- ation for self— insurance are set forth in this paragraph. References
ance is revoked, further self — insurance may be authorized only in this paragraph to "board of directors" and "stockholders of the
under the procedures set forth in sub. (4). corporation" apply only to corporations but an equivalent require -
(4) REQUIREMENTS FOR OTHER EMPLOYERS. (a) Employers ment as determined by the department shall be applied to sole pro -
other than those specified in sub. (3), but including those specified prietorships, partnerships and other forms of business ownership.
in sub. (3) (c), desiring self — insurance shall submit an application 1. The applicant, when submitting an initial request for self —
on a form available from the department. A non — refundable fee, insurance, shall submit audited financial statements (which
determined by the department as described in par. (ag), per includes the opinion of a certified public accountant) for a mini -
employer, shall accompany the initial application. If the applica- mum of the latest five. Except as authorized by the department,
tion is approved, the department shall permit self — insurance by employers self — insured under this subsection shall submit to the
written order. Every 3 years, a self — insured employer shall submit department audited or unaudited financial statements each quarter
an application to renew self — insurance at least 60 days before the and audited financial statements each year.
expiration date specified in the department's order. Each quarter, 2. If the employer is a corporation or a partnership which is
or more often if requested by the department, a self — insured a majority or wholly owned subsidiary, it shall submit to the
employer shall submit the most current financial statements to the department a guaranty of payments by the ultimate or top parent
department. Each year, a self — insured employer shall report company on a department form and a certified copy of the resolu-
work —injury claims payments to the department and other infor- tion adopted by the board of directors of the parent corporation.
mation related to worker's compensation liability requested by the 3. If the employer is a corporation, it shall submit a certified
department. A self — insured employer shall immediately report copy of the resolution adopted by the board of directors autho-
to the department in writing any change in organizational struc- rizing the execution of the initial application:
ture that differs from the information provided in the annual report
submitted to the department, including mergers, acquisitions, Applications by organizations other than corporations shall
company name changes, consolidation, sale, or divestiture of si gned one or more persons possessing authority to execute
such
divisions or subsidiaries. After a change in organizational struc- such appliccaa tion.
ture, the department may revoke or modify the exemption from b. Partnerships must submit a consent by all the partners that
the duty to insure by providing reasonable written notice to the all individuals executing the application have the authority to act
self — insured employer. If these changes result in the creation of for the applicant partnership.
a new parent or subsidiary, the department may waive or modify 4. Corporations, limited partnerships and limited liability
the requirement in par. (b) 1. to submit 5 years of audited financial companies shall be registered in the office of the department of
statements. A fee of $200, per employer, and the assessment gur- financial institutions.
charge described in par. (am) may be billed by the department at 5. The employer shall submit a copy of its current safety and
the same time as the annual assessment under s. 102.75 (1), Stats. loss control plan.
Self — insurance shall expire on the day specified by the department (c) The following criteria may be considered by the depart-
in its order. Unless the context indicates otherwise, all informa- ment in evaluating the qualifications of an applicant for the initial
lion submitted to the department to comply with this section shall application or renewal of self — insurance status:
be submitted on the latest version of a department approved form.
Note: For information regarding forms contact the worker's compensation divi- 1. The financial strength and liquidity of the employer to
lion, bureau of insurance programs, 201 East Washington Avenue, P.O. Box 7901, include: profit and loss history; financial and performance ratios;
Madison, Wisconsin 53707. characteristics and trends for the employer or the consolidated
(ag) In addition to any fee — for — service costs under par. (ax), group of employers to which the employer belongs; characteris-
the department shall charge each initial applicant for self — insur- tics and trends for other employers of the same or the most similar
ance a flat fee which the department estimates is the average cost industry in which the employer or the employer's consolidated
for department employees to review the application for self —in- group is involved;
surance, including employee salary and fringe benefits, supplies 2. The employer's organizational structure, management
services and administrative costs, and information technology background, kind of business, length of time in business, and any
charges. The department shall review and, if necessary, modify intended or newly implemented reorganization including but not
the fee at least every 2 years. limited to merger, consolidation, acquisition of new business,
(am) In addition to any fee — for — service costs under par. (ax), divesting or spinning off of assets or other changes;
each year the department shall assess each self — insured employer 3. The nature and extent of the employer's business opera -
except those specified in sub. (3), but including those specified in tions and assets in the state of Wisconsin;
sub. (3) (c), a $200 fee and a proportionate share of the depart- 4. The employer's bond or other business ratings;
ment's remaining costs to administer the self — insurance program
after deducting the total amount estimated to be collected from the 5. The number of employer's employees, payroll and hours
worked in Wisconsin;
$200 fees and the fees charged under par. (ag) for initial applica-
tions. The department shall determine the assessment amount 6. The employer's performance indicators under ch. 102,
under this paragraph in the same manner as costs and expenses are Stats., including, but not limited to, promptness or time taken in
apportioned in s. 102.75 (1), Stats. making first indemnity payments, promptness or time taken in
(ax) To assist the department in evaluating an initial applica- submitting first reports, and injury and illness incidence and
tion or a renewal application for self — insurance, the department severity rates;
may contract for financial, loss control or other fee — for - service 7. The existing or proposed claims administration, occupa-
expertise or it may direct the applicant to provide the necessary tional health, safety, and loss control programs to be maintained
information. The department shall charge the applicant for self— by the employer. The department may require certification of the
insurance the full cost of any fee — for — service expenses which the occupational safety and health program by state or independently
department incurs in evaluating the application for self— insur- qualified specialists;
ance. If these charges are related to an application for renewal of 8. The worker's compensation loss history, experience modi-
self— insurance, the department may bill the employer at the same fication factor, reported losses, loss reserves and worker's com-
time as the annual assessment under s. 102.75 (1), Stats. pensation premium of the employer; and
Register, September, 2005, No. 597