Assessment-Deposit Procedures for Individual Self-Insured Workers Compensation

All individual licensed self-insurers are required to participate in the Association Aggregate Security System (AASS) unless excluded by the Board of Directors of the Self-Insurance Security Association (SISA) pursuant to NCGS §97-185 (a1). Under the AASS, each self-insured member must pay an annual assessment into the system determined on the credit rating of the self-insurer and undiscounted claims liability. The credit rating utilized may be one that is publicly available or in the case of a non-rated self-insurer, one that is developed from a proprietary model utilized by the SISA. The credit rating is converted into an equivalent assessment rate and multiplied by the self-insurer’s undiscounted claims liability to derive the assessment amount.

Any self-insurer excluded from participation in the AASS, shall deposit with the Commissioner an amount not less than 100% of the individual self-insurer’s total undiscounted claims liability per the most recent report from a qualified actuary, but not less than $500,000. An exemption from the 100% requirement may be considered upon submission of evidence of a credit rating qualifying under statute, but in no instance below 25% of the individual self-insurer’s total undiscounted claims liability per the most recent report from a qualified actuary or $500,000, whichever is greater. In addition, for any given year that the AASS is not in effect, the deposit process will revert to the procedure previously stated.

Deposit Options

Questions

If you have any questions please contact Mike McKinney at 919-807-6628 (mike.mckinney@ncdoi.gov).

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