§ 125.4. Application for affiliates and subsidiaries.

 (a)  An affiliate or subsidiary may be included under an application submitted by another affiliate or its parent company if the parent company or affiliate is incorporated under the laws of a state of the United States. The related entities will be included under one consolidated permit if the application is approved. A request shall be made on a form prescribed by the Bureau to add or delete an affiliate or a subsidiary to or from a consolidated permit after its issuance.

 (b)  An applicant shall provide a written agreement adopted by its board of directors on a form prescribed by the Bureau which states that the applicant guarantees the payment of all claims incurred by the affiliates or subsidiaries. The applicant shall further assume liability for the payment of an affiliate’s or subsidiary’s claims incurred during its period of self-insurance upon termination of the affiliate or parent-subsidiary relationship unless the applicant is relieved of this liability by the Bureau. In determining whether to relieve an applicant of a subsidiary’s or affiliate’s liability, the Bureau will consider, among other things, the financial ability of the new owner of the subsidiary or affiliate to pay the liabilities, the new owner’s credit worthiness and the adequacy of security held by the Bureau covering the liability.

 (c)  The guarantor may not terminate the agreement under any circumstances without first giving the Bureau and the affected affiliate or subsidiary 45 days written notice. The affiliate’s or subsidiary’s self-insurance status automatically terminates upon expiration of the 45-day notice period.

 (d)  If an affiliate or subsidiary not included under a consolidated application as outlined in subsection (a) wishes to self-insure, it shall submit an application in its own name and provide its own audit reports in the manner indicated in §  125.3 (relating to application). The Bureau may require the parent company to furnish appropriate financial information within a reasonable time according to the extent and nature of the requested information.

   This section cited in 34 Pa. Code §  125.3 (relating to application); 34 Pa. Code §  125.6 (relating to decision on application); and 34 Pa. Code §  125.15 (relating to workers’ compensation liability).