§ 125.11. Specific excess insurance and aggregate excess insurance.

 (a)  A self-insured private employer with quick assets of less than the Statewide average weekly wage multiplied by 200,000 or with cash and cash equivalents of less than the Statewide average weekly wage multiplied by 100,000 or a self-insured public employer with general fund quick assets of less than the Statewide average weekly wage multiplied by 50,000 shall obtain specific excess insurance with a liability limit acceptable to the Bureau and a retention amount or cash flow protection amount which is less than 10% of its quick assets. The Bureau may waive this requirement upon written request if the self-insurer demonstrates that it has sufficient financial strength and liquidity to assure that all obligations under the act and the Occupational Disease Act will be promptly met without the protection of an excess insurance policy.

 (b)  Aggregate excess insurance may be obtained by a self-insurer. The Bureau will not recognize a contract or policy of aggregate excess insurance in considering the ability of an applicant to fulfill its financial obligations under the act and the Occupational Disease Act unless the contract or policy complies with subsection (c).

 (c)  The contract or policy of aggregate excess insurance or specific excess insurance, or both, shall comply with the following:

   (1)  It shall be issued by an excess insurer which possesses an A. M. Best Rating of B+ or better or a Standard and Poor’s rating of claims paying ability of A or better.

   (2)  It shall state that it is not cancelable or nonrenewable unless written notice by registered or certified mail is given to the other party to the policy and to the Bureau at least 45 days before termination by the party desiring to cancel or not renew the policy.

   (3)  It shall state that if a self-insurer is unable to make benefit payments under the act and the Occupational Disease Act due to insolvency or bankruptcy, the excess carrier shall make payments to other parties involved in the paying of the self-insurer’s liability, as directed by the Bureau, subject to the policy’s retentions and limits.

   (4)  It shall state that the following apply toward reaching the retention amount in the excess contract:

     (i)   Payments made by the employer.

     (ii)   Payments made on behalf of the employer under a surety bond or other forms of security as required under this subchapter.

     (iii)   Payments made by the Self-Insurance Guaranty Fund.

   (5)  It shall state that it applies to any losses of a self-insurer under the act and the Occupational Disease Act; it may not exclude coverage for any categories of injuries or diseases compensable under the act and the Occupational Disease Act.

 (d)  A certificate of the excess insurance obtained by the self-insurer shall be filed with the Bureau together with a certification that the policy fully complies with subsection (c).

   This section cited in 34 Pa. Code §  125.5 (relating to minimum requirements).