Subsidiaries
Each subsidiary or affiliate company of a private applicant must file a separate application to become self-insured. They may apply with the parent company or individually, and the same application form is completed by the subsidiary/affiliate.
Group self insurance by non-affiliated companies is permitted under California regulation, for both private and public sector employers. During 2002, group self-insurers began forming in the private sector for the first time.
Current regulations permit existing private self-insurers of net worth over $10 million to add new subsidiary or affiliate companies with an application for an interim certificate. This provides immediate self-insurance for the new subsidiary/affiliate company and is valid for 180 days. During the 180-day period, a three-page application for a permanent certificate must be filed and approved prior to the expiration of the interim certificate.