CHAPTER 165. WORKERS’ COMPENSATION SECURITY FUND

 The purpose of this chapter is to:

   (1)  Establish how contributions are made to the Fund.

 The Fund may secure, using Commonwealth procurement standards:

   (1)  A third party administrator to perform claim assessment and handling, and administrative duties and responsibilities.

   (2)  Actuarial services to provide an annual liability report and to do the analysis described in §  165.6 (relating to amount of fund) to determine the assessment.

 (a)  A minimum balance of $500 million shall be maintained in the Fund.

 (b)  If, due to the payment of liabilities or claims, the balance of the Fund is reduced below $500 million, the Department, in order to return the Fund to the $500 million level, will require contributions sufficient to fund:

   (1)  The current shortage below $500 million.

   (2)  Plus the expected payment of liabilities for the next calendar year.

   (3)  Plus expenses to administer the Fund for the next calendar year.

   (4)  Less expected investment earnings on the Fund balance during the next calendar year.

 (a)  The amount of an assessment will be determined by using the actuarial services described in §  165.5 (relating to administration).

 (b)  Every carrier, doing the business of workers’ compensation insurance in this Commonwealth, will be assessed, based on a prorata share of the total amount of net-written premiums of workers’ compensation insurance reported as written in the previous calendar year’s annual statement.

 (c)  The assessment, when necessary, will be billed by December 31 of the year that the actuarial study is completed. (Example: Data from the 2002 calendar year is used, the actuarial study is completed in 2003, then the assessment will be made by December 31, 2003.)

 (a)  If a carrier fails to file a return, or make any payment required by the act, or in case the Commissioner has cause to believe that a return or other statement filed is false or inaccurate in any particular, or that a payment made is incorrect, the Commissioner has full authority to examine all the books and records of the carrier for the purpose of ascertaining the facts and determine the correct amount to be paid. The Commissioner may proceed in any court of competent jurisdiction to recover for the benefit of the Fund any sums shown to be due upon the examination and determination.

 (b)  A carrier that fails to make a statement as required by the act, or to pay any contribution when due, thereby forfeits to the Fund a penalty of 5% of the amount of unpaid contribution determined to be due, as provided by the act, plus 1% of the amount for each month of delay or fraction thereof after the expiration of the first month of the delay.

 (c)  The Commissioner will revoke the certificate of authority to do business in this Commonwealth of a carrier which fails to comply with the act or to pay a penalty imposed in accordance with the act.