(1) An employer group which has been self-insured for at least one year may add employers with the approval of the department, and the concurrence of the guaranty fund. New members may only be added on January 1, April 1, July 1 and October 1. The employer group shall provide the following information about the new employer at least 90 days prior to the requested date of addition to the employer group:

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

(b) resolution designating authorized signatures for participation in the program;

(c) a copy of a signed agreement showing:

(i) agreement to accept joint and several liability for all workers' compensation benefits and occupational disease obligations incurred by the employer group;

(ii) provision for power of attorney between the new applicant and the employer group; and

(iii) agreement to be bound by the by-laws and by the employer group's decisions;

(d) copies of additional years audited or reviewed financial statements may be required from each new applicant by the department or the guaranty fund. Upon request of the applicant, and when approved by the department and the guaranty fund, the submission of these financial statements may be to an independent certified public accountant. The department will advise the CPA of the nature and format of the information to be provided to the department. The applicant shall pay the cost of such a submission and review;

(e) the employer group may accept a new applicant who provides reviewed financial statements, provided the total premiums payable to the group from individual members having reviewed financial statements, including the new applicant, shall not exceed 25% of the employer group's total normal premium for the year the applicant joins the employer group;

(f) a claims summary from insurance carriers who provided coverage for claims incurred in Montana during the preceding 3 years;

(g) evidence that the applicant has been accepted for coverage by the employer group's excess insurance carrier; and

(h) evidence that the private employer has been in business for a period of not less than 3 years; however, a new entity created from the reorganization of one or more self-nsured entities may elect to self-insure individually or as a member of a employer group even though the new entity has not been in existence for a period of 3 years. Such election shall be made on the effective date of the new employer entity.