Section 386. Method of Assessment

   (a) (1) The Board of trustees shall, commencing January 1, 1991, assess each participant in accordance with paragraph (2) of this subsection. Upon reaching a funded level of $10 million, all annual assessments against participants who have paid at least three prior assessments shall cease except as specifically provided in paragraph (4) of this subsection.

   (2) Assessment for each new participant in the first calendar year of participation shall be $8,000.00. Thereafter, assessments shall be in accordance with paragraphs (3) and (4) of this subsection.

   (3) After the first calendar year of participation, the assessment of each participant shall be made on the basis of a percentage of the total of indemnity benefits paid by, or on behalf of, the participant during the previous calendar year. Except as provided in paragraph (2) of this subsection for the first calendar year of participation and paragraph (4) of this subsection, a participant will be assessed 1.5 percent of the indemnity benefits paid by that participant during the previous calendar year or $2,000.00, whichever is greater. The maximum amount of annual assessments, not including those special assessments provided for in paragraph (4) of this subsection, in any calendar year against any one participant shall be $8,000.00.

   (4) If the fund is reduced to an amount below $5 million net of all liabilities as the result of the payment of claims, the administration of claims, or the costs of administration of the Fund, the Board of trustees may levy a special assessment against participants in an amount sufficient to increase the funded level of $5 million net of all liabilities; provided however, that such assessment in any calendar year against any one participant shall not exceed $8,000.00.

   (5) Funds obtained by such assessment shall be used only for the purposes set forth in this article and shall be deposited upon receipt by the Board of trustees into the fund. If payment of any assessment made under this article is not made within 30 days of the sending of the notice to the participant, the Board of trustees is authorized to do any or all of the following:

      (A) Levy fines or penalties;

      (B) Proceed in court for judgment against the participant, including the amount of the assessment, fines, penalties, the costs of suit, interest, and reasonable attorneys' fees;

      (C) Proceed directly against the security pledged by the participant for the collection of same; or

      (D) Seek revocation of the participant's insured status.

(b) (1) The Fund shall be liable for claims arising out of injuries occurring after January 1, 1991; provided, however, no claim may be asserted against the Fund until the funding level has reached $1.5 million.

   (2) All participants shall be required to maintain surety bonds or the Board of trustees may, in its discretion, accept any irrevocable letter of credit or other acceptable forms of security in the amount of no less than $250,000.00. In addition, each active participant shall be required to purchase excess insurance for statutory limits with a self-insured retention specified by the Board, and the excess policy shall include the bankruptcy endorsement required by the board and Board of trustees. For participants who are no longer active, security in an amount commensurate with their remaining exposure, as determined by the board, shall be required until all self-insured claims have been closed and all applicable statutes of limitations have run.

(c) A participant who ceases to be a self-insurer shall be liable for any and all assessments made pursuant to this code section for so long as indemnity or medical benefits are paid for claims which originated when the participant was a self-insurer. Assessments of such a participant shall be based on the indemnity benefits paid by the participant during the previous calendar year.

(d) Upon refusal to pay assessments, penalties, or fines to the Fund or upon refusal to comply with a board order increasing security, the Fund may treat the self-insurer as being in default with this Chapter and the self-insurer shall be subject to revocation of its Board authorization to self-insure and forfeiture of its security.