(1) Employers or employer groups electing to be selfinsured shall demonstrate ability to pay by providing audited financial statements, evidence of excess insurance, if required, and a security deposit, if required, that upon analysis indicate ability to pay, as determined by the department, with the concurrence of the guaranty fund.

(2) An employer electing to self-insure that does not have audited 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 for audited financial statements if the employer furnishes an increased security deposit.

(3) The department will analyze the information provided by the employer or employer group. The analysis will include review of excess insurance, security deposit and financial conditions, current and historical, related to their ability to pay compensation benefits.