(1) An employer initially electing to be bound as a self-insurer shall provide the following:

(a) a completed application on forms provided by the department;

(b) audited financial statements for the last two years, or, an employer that does not have audited financial statements prepared as a normal business practice may, with the prior approval of the department and the concurrence of the guaranty fund, substitute reviewed financial statements if the employer furnishes an increased security deposit approved by the department with the concurrence of the guaranty fund;

(c) proof that it has been in business for a period of not less than three years; however, at the discretion of the department, with the concurrence of the guaranty fund:

(i) a new employer created from the reorganization of a self-insured employer may elect to self-insure even though it has not been in existence for a period of three years. Such election must be made on the effective date of creation of the new employer;

(ii) an employer in business less than three years may be considered if its liability is guaranteed by a parent corporation which has been in business for a period of not less than three years. The department, with the concurrence of the guaranty fund, may accept a guarantee from an employer in lieu of a parental guarantee;

(iii) an employer whose liability is guaranteed by a parent corporation or an employer shall provide a resolution and an agreement of assumption and guarantee of workers' compensation liabilities on forms prescribed by the department and submit two years of audited financial statements demonstrating the ability to pay compensation benefits;

(d) evidence that it has obtained an insurance policy of specific excess and if required, aggregate excess insurance with policy limits, nature of coverage, and retention amounts acceptable to the department, with the concurrence of the guaranty fund, as required in ARM 24.29.616;

(e) a claims summary of claims incurred in Montana from insurance companies who provided coverage for the preceding three years;

(f) evidence that its internal or contracted claims adjustment service is in compliance with ARM 24.29.804;

(g) evidence that it has a written safety and loss control program;

(h) a security deposit in an amount required by the department with the concurrence of the guaranty fund;

(i) certification that the self-insurance plan is not funded by a regulated or unregulated insurance company;

(j) evidence that internal policies and procedures are satisfactory to administer a self-insurance program; and

(k) evidence of permission to self-insure in other states, if applicable.