In pursuant to A.S.C.A. §32.0530(a)(2), any employer applying for self-Insurance must first acquired official authorization of the Workmen's Compensation Commission. For authorization consideration, the employer is mandated to furnish and provide a satisfactory proof to the Commissioner of its financial ability and capacity to pay and maintain compensation coverage on its own.

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The Commissioner may deny any application for self-insurance if the employer fails to prove its financial ability to meet and pay workmen’s compensation directly for its employees. The Commissioner may as a condition to such authorization require an employer to deposit in a depository designated by the Commissioner either an indemnity bond or securities at the option of the employer an amount determined by the Commissioner. This depository amount shall also be subjected under other conditions as the Commissioner may prescribe such as the authorization to the Commissioner in case of default to sell such securities or bond to either pay any compensation awards, bring suit upon such bonds, or to procure prompt payment or compensation on claims. 

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QUALIFICATIONS FOR SELF-INSURANCE:

To qualify for self-insurance, an employer must meet the following criteria:

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(1) Operating within the Territory for 15 years or more;

(2) Employing at least 100 or more employees;

(3) In good financial standing; and

(4) Meeting the total security or indemnity bond determined by the Commission. In no event shall the security or bond be less than $200,000.00.

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APPLICATION FOR SELF-INSURANCE

To apply for authorization to be self-insurer, an employer must submit and file a FORM INS-01 with the Commission's Office. An application will be denied if the employer fails or refuses to furnish and provide all of the documentations as required by the application form during submission.

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