Queensland Consolidated Acts

WORKERS' COMPENSATION AND REHABILITATION ACT 2003 - SECT 84

84 Security

(1) A self-insurer must lodge a security with the Regulator before the issue or renewal of a licence.

(2) The security must be—

(a) in favour of WorkCover; and

(b) 150% of the self-insurer’s estimated claims liability.

(3) Also, if the security is a bank guarantee or financial guarantee, the security—

(a) must be irrevocable and unconditional, including not being conditional on—

(i) another right or obligation contained in another document; or

(ii) WorkCover proving that a demand has been made; and

(b) must be payable immediately on demand; and

(c) must not be given by an entity that is a related body corporate to the self-insurer; and

(d) must be satisfactory to the Regulator.

(4) The estimated claims liability—

(a) must be assessed annually by an actuary approved by the Regulator; and

(b) must be calculated in the way prescribed under a regulation.

(5) The security must remain in force or, if it is a cash deposit, the Regulator must hold the cash deposit—

(a) at all times during the period of the licence; and

(b) after cancellation of the licence, as required by section 102 .

(6) The security is not liable to be attached or levied on or made the subject of any debts or claims against the self-insurer by a person other than WorkCover.

(7) If a self-insurer lodges a financial guarantee under subsection (1) and the insurance company that gave the guarantee stops being an approved security provider, the self-insurer must—

(a) notify the Regulator of the matter without delay; and

(b) lodge another security under this section within 20 business days after the date of the notice given under paragraph (a) .

(8) In this section—

"approved security provider" means an approved security provider as defined under the Financial and Performance Management Standard 2009 , section 36 .

"bank guarantee" means a guarantee given by a bank or the Queensland Treasury Corporation.

"estimated claims liability" means the actuarial estimate of—

(a) the liability for—

(i) claims expected to arise in the 12 months after the assessment; and

(ii) existing claims incurred for which a self-insurer is liable under section 68C or 87 ; less

(b) the total amount expected to be paid in the 12 months after the assessment.

"financial guarantee" means a security given by an insurance company that is an approved security provider.

"security" means—

(a) a bank guarantee; or

(b) a financial guarantee; or

(c) a cash deposit.