§ 28-36-1. Insurance or filing of bond required.
(a) Every employer subject to or who or that has elected to become subject to chapters
29 — 38 of this title as provided in §â€‚28-29-8 shall secure in one of the following ways the compensation for which the employer
is or may become liable under those chapters:
(1) By insuring and keeping insured against liability to pay the compensation in any stock
or mutual company, or association, authorized and qualified to do business in this
state and to take those risks in this state;
(2)(i) By furnishing to the director of labor and training satisfactory proof of his or her
financial ability to pay directly to injured employees or their dependents the compensation,
and by furnishing security, indemnity, or a bond in kind and in amount satisfactory
to the director. The bond shall run to the director for the benefit of the employees
and their dependents and with the indemnity or security shall be deposited with him
or her;
(ii) Should the self-insured employer be unable to pay claims then the director shall call
on the security, indemnity, or bond in kind. If these funds are deposited in a state
account, the account shall be an interest-bearing account and all accrued interest
shall only be for the benefit of employees and dependents of the self-insured employer;
(3)(i) By a combination of subsections (a)(1) and (a)(2) of this section, the employer may
self-insure for a sum certain by furnishing security, indemnity, or a bond in kind
and amount equal to the sum certain, together with insurance for loss in excess of
the sum certain.
(ii) The provisions of subsections (a)(2) and (a)(3) of this section shall apply upon compliance
with the reasonable criteria and rules and regulations as established by the director
to qualify and safeguard the underlying amounts of self-insurance; or
(4) By becoming a member of an authorized group self-insurance fund pursuant to chapter
47 of this title.
(b)(1) All employers who or that apply for approval to self-insure for all or part of their
liability, pursuant to subsections (a)(2) and (a)(3) of this section, shall pay an
application fee based upon the number of employees located at the employer's place(s)
of business in Rhode Island. The fees for new applications are set in accordance with
the following schedule:
| Number of Employees |
Fee |
| 1-249 |
$300 |
| 250-499 |
$350 |
| 500-749 |
$400 |
| 750-999 |
$450 |
| 1,000 or more |
$500 |
(2) There is established a restricted-receipt account within the department of labor and
training into which shall be deposited the application fees set forth in subsection
(b)(1) of this section and the revenue derived from the assessment set forth in subsection
(b)(3) of this section. This account shall be used solely for the payment of the expenses
of the department of labor and training in performing its duties under this section
and § 28-36-2. If an employer receives approval to self-insure from the director for all or part
of its liability pursuant to subsection (a)(2) or (a)(3) of this section, the application
fee paid by that employer shall be applied as a credit to reduce the amount of the
assessment apportioned to that employer pursuant to subsection (b)(3) of this section.
(3) The director of labor and training and the department of administration, annually,
as soon as practicable prior to the start of the fiscal year, in each succeeding year,
shall ascertain the total amount of expenses, including in addition to the direct
costs of personal services: (i) The cost of maintenance and operation; (ii) The cost
of retirement contributions made and workers' compensation premiums to be paid by
the state for or on account of personnel; (iii) Rentals for space to be occupied in
state-owned or state-leased buildings; and (iv) All other direct or indirect costs
to be incurred by the department of labor in the next fiscal year in carrying out
its responsibilities under this section and § 28-36-2. Those expenses shall be assessed against all employers who or that self-insure for
all or part of their liability under chapters 29 — 38 of this title. The basis of
apportionment of the assessment against each employer shall be that proportion of
those expenses that the penal sum of the surety bond, indemnity, or security of each
employer at the close of the preceding fiscal year bears to the total of the penal
sum of all bonds, indemnity, or security for all employers.
(4)(i) In addition to current classified positions in the department of labor and training
self-insurance unit, consisting of administrator, hearing officer, supervising trainer,
and senior clerk stenographer, there shall be funded as unclassified positions:
(A) Two (2) administrative aide positions; and
(B) Two (2) financial evaluator analysts.
(ii) This staff's and/or any consultant's studies on feasibility and/or audits, as assessed
by the administrator according to the rules of the department at the expense of any
self-insured or proposed self-insured entity, shall be reported to the director of
the department in the course of the department operations on the administration of
the self-insurance unit. All funds are from the restricted receipt account of the
department as collected by the self-insurance unit pursuant to subsections (b)(1)
— (b)(3) of this section.