Glossary Check: Wash. 'Joint Venture'

Certification Requirements

Explanations

The name of a sponsoring party

The sponsoring party must be a certified self-insurer in good standing and have a majority financial interest in the assets and profits of the joint venture.

A list of named participants

Each named participant must also:

1. Demonstrate that it has at least twenty percent interest in the joint venture.
2. Submit three years' worth of audited financial statements prepared by certified independent accountants.

A written acknowledgement from each named participant of its joint and several liability for continuing compensation if any participant of the joint venture defaults

This responsibility continues until the department grants a written release to the joint venture or the remaining participant(s) of the joint venture.

A written release from the department is granted only after the contract has been completed and a final settlement of the joint venture account has been made.

A written description of the obligations of each participant for the industrial insurance program of the joint venture

A written acknowledgement of the sponsoring party's responsibilities for the management of all claims and payment of all compensation incurred during the period of the joint venture's self-insurance certification and after the joint venture is dissolved

This acknowledgement must include the sponsor's continuation of benefits if the joint venture or any of the other parties of the joint venture defaults.