(1) The State Fund may offer an employer, or a group, a retrospective rating plan for coverage under the Workers' Compensation Act.
(2) The board shall establish employer retrospective rating plans for each fiscal year utilizing the methods and formulas published by the National Council on Compensation Insurance Retrospective Rating Manual, 2009 edition. The board shall determine the factors, multipliers, ratios, or other formula components for the plan. The board may establish a group retrospective rating plan utilizing the methods, formulas, factors, multipliers, ratios, or other formula components as determined by the board.
(3) To qualify for participation in a plan the employer or group shall:
(a) be selected by the State Fund pursuant to criteria established by the board, and be provided a written proposal for a State Fund retrospective rating plan;
(b) execute an agreement with the State Fund; and
(c) have an annual estimated employer or group earned premium that equals or exceeds an amount determined by the board.
(4) The employer, group, or group member may be disqualified from participation in a plan because of a poor payment history with the State Fund, as a result of a credit investigation or review of relevant financial information which demonstrates the employer, group, or group member is not sufficiently financially stable to be responsible for the payment of any retrospective rating adjustment. As a condition of approval the State Fund may require security including, but not limited to, surety bond, cash deposit or guarantee sufficient to meet the reasonably anticipated obligations of the employer for the policy year.
(5) The plan shall provide for penalty for early termination of the plan by an employer. The plan may provide for penalty for early termination of the plan by a group.