SECTIONS 11690-11703

11690.  For purposes of this article: (a) "Compensable workers' compensation claim" means a claim wherethe claimant is entitled to benefits under the workers' compensationlaw of the state. (b) "Delinquency proceeding" means any proceeding commencedagainst an insurer for the purpose of liquidating, rehabilitating,reorganizing, or conserving that insurer, where there has not been acourt order finding the insurer insolvent. (c) "Receiver" means liquidator, rehabilitator, or conservator, asappropriate.11691.  (a) In order to provide protection to the workers of thisstate in the event that the insurers issuing workers' compensationinsurance to employers fail to pay compensable workers' compensationclaims when due, except in the case of the State CompensationInsurance Fund, every insurer desiring admission to transact workers'compensation insurance, or workers' compensation reinsurancebusiness, or desiring to reinsure the injury, disablement, or deathportions of policies of workers' compensation insurance under theclass of disability insurance shall, as a prerequisite to admission,or ability to reinsure the injury, disablement, or death portion ofpolicies of workers' compensation insurance under the class ofdisability insurance, deposit cash instruments or approvedinterest-bearing securities or approved stocks readily convertibleinto cash, investment certificates, or share accounts issued by asavings and loan association doing business in this state and insuredby the Federal Deposit Insurance Corporation, certificates ofdeposit or savings deposits in a bank licensed to do business in thisstate, or approved letters of credit that perform in materialrespects as any other security allowable as a form of deposit forpurposes of a workers' compensation deposit and that meet thestandard set forth in Section 922.5, or approved securitiesregistered with a qualified depository located in a reciprocal stateas defined in Section 1104.9, with that deposit to be in an amountand subject to any exceptions as set forth in this article. Thedeposit shall be made from time to time as demanded by thecommissioner and may be made with the Treasurer, or a bank or savingsand loan association authorized to engage in the trust businesspursuant to Division 1 (commencing with Section 99) or Division 2(commencing with Section 5000) of the Financial Code, or a trustcompany. A deposit of securities registered with a qualifieddepository located in a reciprocal state as defined in Section 1104.9may only be made in a bank or savings and loan associationauthorized to engage in the trust business pursuant to Division 1(commencing with Section 99) or Division 2 (commencing with Section5000) of the Financial Code, or a trust company, licensed to dobusiness and located in this state that is a qualified custodian asdefined in paragraph (1) of subdivision (a) of Section 1104.9 andthat maintains deposits of at least seven hundred fifty milliondollars ($750,000,000). The deposit shall be made subject to theapproval of the commissioner under those rules and regulations thathe or she shall promulgate. The deposit shall be maintained at adeposit value specified by the commissioner, but in any event no lessthan one hundred thousand dollars ($100,000), nor less than thereserves required of the insurer to be maintained under any of theprovisions of Article 1 (commencing with Section 11550) of Chapter 1of Part 3 of Division 2, relating to loss reserves on workers'compensation business of the insurer in this state, nor less than thesum of the amounts specified in subdivision (a) of Section 11693,whichever is greater. The deposit shall be for the purpose of payingcompensable workers' compensation claims under policies issued by theinsurer or reinsured by the admitted reinsurer and expenses asprovided in Section 11698.02, in the event the insurer or reinsurerfails to pay those claims when they come due. If the insurerproviding the deposit is domiciled in a state where a state statute,regulation, or court decision provides that, with respect to coveredclaims within the deductible amount that are paid by a guaranteeassociation after the entry of an order of liquidation under largedeductible workers' compensation policies, any part of thereimbursement proceeds, other than the reasonable expenses of thereceiver related to treatment of deductible policy arrangements ofinsurance companies in liquidation, owed by insureds on thosedeductible amounts, whether paid directly or through a draw ofcollateral, are general assets of the estate, then the amount of theinsurer's deposit pursuant to this article shall be calculated basedon the gross amount of that insurer's liabilities for loss and lossadjustment expenses under those policies without regard to thedeductible, and those reserves shall not be reduced by any collateralor reimbursement obligations insureds were required to provide underthose policies. Nothing in this section shall require that the deposit becalculated based on gross amounts of liabilities described above ifthe domiciliary state does not have an existing statute, regulation,or court decision providing that the reimbursement proceeds describedabove are general assets of the estate. (b) Each insurer or reinsurer desiring to have the ability toreinsure the injury, disablement, or death portions of policies ofworkers' compensation under the class of disability insurance shallprovide prior notice to the commissioner, in the manner and formprescribed by the commissioner of its intent to reinsure thatinsurance. In the event of late notice, a late filing fee shall beimposed on the reinsurer pursuant to Section 924 for failure tonotify the commissioner of its intent to reinsure workers'compensation insurance. (c) If the deposit required by this section is not made with theTreasurer, then the depositor shall execute a trust agreement in aform approved by the commissioner between the insurer, theinstitution in which the deposit is made or, where applicable, thequalified custodian of the deposit, and the commissioner, that grantsto the commissioner the authority to withdraw the deposit as setforth in Sections 11691.2, 11696, 11698, and 11698.3. The insurershall also execute and deliver in duplicate to the commissioner apower of attorney in favor of the commissioner for the purposesspecified herein, supported by a resolution of the depositor's boardof directors. The power of attorney and director's resolution shallbe on forms approved by the commissioner, shall provide that thepower of attorney cannot be revoked or withdrawn without the consentof the commissioner, and shall be acknowledged as required by law. (d) (1) The commissioner shall require payment in advance of feesfor the initial filing of a trust agreement with a bank, savings andloan association, or trust company on deposits made pursuant tosubdivision (a); for each amendment, supplement, or other change tothe deposit agreement; for receiving and processing deposit schedulespursuant to this section; and for each withdrawal, substitution, orany other change in the deposit. The fees shall be set forth in thedepartment's Schedule of Fees and Charges. (2) The commissioner shall require payment in advance of a fee forthe initial filing of each letter of credit utilized pursuant tosubdivision (a). In addition, the commissioner shall require paymentin advance of a fee for each amendment of a letter of credit. Thefees shall be set forth in the department's Schedule of Fees andCharges. (e) Any workers' compensation insurer that deposits cash or cashequivalents pursuant to this section shall be entitled to a promptrefund of those deposits in excess of the amount determined by thecommissioner pursuant to subdivision (a). The commissioner shallcause to be refunded any deposits determined by the commissioner tobe in excess of the amount required by subdivision (a) within 30 daysof that determination. In the alternative, an insurer may use anyexcess deposit funds to offset a demand by the commissioner toincrease its deposit due to the failure of a reinsurer to make adeposit pursuant to this section. (f) (1) As of January 1, 2003, an admitted insurer reinsuringbusiness covered in this article (hereafter referred to as reinsurer)shall identify to the commissioner, in a form prescribed by thecommissioner, amounts deposited for credit in the name of each cedinginsurer. (2) Beginning January 1, 2005, all reinsurance agreements coveringclaims and obligations under business covered by this article, andallowable for purposes of granting a ceding carrier a deposit credit,shall include a provision granting the commissioner, in the event ofa delinquency proceeding, receivership, or insolvency of a cedinginsurer, any sums from a reinsurer's deposit that are necessary forthe commissioner to pay those reinsured claims and obligations, or toensure their payment by the California Insurance GuaranteeAssociation, deemed by the commissioner due under the reinsuranceagreement, upon failure of the reinsurer for any reason to makepayments under the policy of reinsurance. The commissioner shall give30 days' notice prior to drawing upon these funds of an intent to doso. Notwithstanding the commissioner's right to draw on these funds,the reinsurer shall otherwise retain its right to determine thevalidity of those claims and obligations and to contest their paymentunder the reinsurance agreement. Prior to a reinsurer's depositbeing drawn upon, in whole or in part, by the department, thedepartment shall provide a reinsurer with an explanation ofprocedures that a reinsurer may use to explain to the department whythe use of the reinsurer's deposit may not be appropriate under thereinsurance agreement. (3) No reinsurer entering into a contract identified in paragraph(2), beginning on or after January 1, 2005, may cede claims orobligations assumed from a ceding insurer unless the deposit securingthe ceded claims or obligations is governed by paragraph (2) or,upon approval of the commissioner, would secure the ceded claims orobligations in all material respects and in the same manner as adeposit identified in paragraph (2) above. (4) All sums received from the reinsurer by the commissioner forthose claims paid by the California Insurance Guarantee Associationshall be held separate and apart from and not included in the generalassets of the insolvent insurer, and shall be transferred to theCalifornia Insurance Guarantee Association upon receipt by thecommissioner. In the event of a final judgment or settlement adverseto the drawing of funds by the commissioner pursuant to paragraph (2)or (3), the California Insurance Guarantee Association shall repayfunds it obtained to pay covered claims and shall, if necessary,either levy a surcharge as needed or seek legislative approval tolevy the surcharge if the California Insurance Guarantee Associationis already levying the maximum surcharge permissible under law. (g) If a reinsurer has not maintained deposits as required bysubdivision (a) in amounts equal to the amounts of deposit creditsclaimed by its ceding insurers, the commissioner, after notifying thereinsurer and its ceding insurers of the deposit shortfall andallowing 15 days from the date of the notice for the depositshortfall to be corrected, may disallow all or a portion of thereserve credits claimed by the ceding insurers. A ceding insurerdisallowed a reserve credit pursuant to this provision shallimmediately make the deposit required by this section. (h) For interest-bearing securities that are debt securities andinclude principal payment features prior to maturity that areutilized pursuant to subdivision (a), all principal payments receivedmust be retained as part of the deposit. (i) Withdrawal of any amount of the deposit required undersubdivision (a) that results in a reduction of the required amount ofthe deposit may only occur with the prior written consent of thecommissioner.11691.1.  The fees for filing a schedule of securities with theTreasurer, and making a deposit of the same, and for each withdrawal,substitution, or any other change in the securities comprising thisdeposit with the Treasurer, shall be paid to the commissioner for thecosts of review and approval of deposits, and shall be the same asare prescribed by Article 11 (commencing with Section 939) of Chapter1 of Part 2 of Division 1. All other reasonable charges made by the Treasurer for servicingsecurities deposited with him or her shall be paid to the Treasurerby the insurer that has deposited the security, and shall not becharged to the commissioner.11691.2.  The deposit required pursuant to Section 11691 shall besecurity for the payment of the insurer's obligations on worker'scompensation insurance transacted in this state. The deposit shallnot be withdrawn except upon the written order of the commissioner touse the proceeds thereof in payment of compensable worker'scompensation claims and expenses as provided in Section 11698.02, oras otherwise provided in this article, but shall be forthwith payableto the commissioner or at the direction of the commissioner by theTreasurer or the bank, savings and loan association, or trust companyapproved by the commissioner upon that order. No deposit so placedwith a bank, savings and loan association, or trust company shall besubject to any lien or claim asserted by it or be subject to anydisposition obligation, demand, liability, cause of action, judgment,or other claim, or cost or expense attendant thereon, other than asis permitted by the commissioner. Notwithstanding any otherprovisions of this code, the deposit shall be retained by theTreasurer or the bank, savings and loan association, or trust companyapproved by the commissioner and only released in accordance withthe provisions of this article or pursuant to regulations or awritten order of the commissioner.11691.3.  The commissioner shall establish a list of all insurers orreinsurers authorized to reinsure the injury, disablement, or deathportions of policies of workers' compensation insurance under theclass of disability insurance. An insurer or reinsurer shall beauthorized to reinsure the injury, disablement, or death portions ofpolicies of workers' compensation insurance under the class ofdisability insurance if it has complied with Section 11691. Thecommissioner shall publish a master list of those insurers orreinsurers at least semiannually. Any insurer or reinsurer providingthe notification and deposit required by Section 11691, shall beadded by addendum to the list at the time of approval, and shall beincorporated into the master list at the next date of publication.The list and addenda required by this section shall be published sothat they are readily accessible to insurers and producers. The listand addenda required by this section shall also contain a notice thatif an insurer enters into a contract of reinsurance with an insureror reinsurer reinsuring the injury, disablement, or death portions ofpolicies of workers' compensation insurance under the class ofdisability insurance that is not authorized pursuant to this section,the ceding insurer may not be able to claim that reinsurance forreserve credit.11692.  A certificate of authority to transact workers' compensationinsurance in this state shall not be issued nor renewed to anyinsurer until the deposit required pursuant to Section 11691 isapproved by the commissioner.11692.5. On and after the effective date of this article, thecommissioner shall collect a late filing fee from any admittedinsurer or reinsurer that fails to deposit the securities whenrequired by this code in the following amount: (a) If the deposit shortfall is outstanding for less than 31 days,0.5 percent of the deposit shortfall, but in no event not less thansix hundred dollars ($600). (b) If the deposit shortfall is outstanding for more than 30 daysbut less than 61 days, an additional late filing fee in the amount of1 percent of the deposit shortfall, but in no event not less thanone thousand two hundred dollars ($1,200) shall be due. (c) If the deposit shortfall is outstanding for 61 days orgreater, an additional late filing fee of 1.5 percent of the depositshortfall for every 30-day period thereafter, or fraction thereof,but in no event shall this portion of the late filing fee for eachadditional 30-day period or fraction thereof be less than threethousand dollars ($3,000). The late filing fees provided herein arein addition to all other rights and remedies granted the commissionerby this article.11693.  The deposit required pursuant to Section 11691 shall beadjusted on or prior to March 31 of each year in an amount asfollows: (a) Not less than the sum of the following amounts computed, lesscredits and deductions allowable with respect to reinsurance inadmitted insurers, as provided under Section 11691, as of the closeof the last preceding December 31 or as of any calendar quarter endas directed by the commissioner pursuant to Section 11694 in respectto workers' compensation insurance written subject to the workers'compensation laws of this state: (1) The aggregate of the present values at 6 percent interest, orat the rate of the company's investment yield as determined by theNAIC Insurance Regulatory Information System Ratio Number 5 forProperty and Casualty Companies, whichever is lower, of thedetermined and estimated future payments upon compensation claims notincluded in paragraph (2), including in those claims both benefitsand loss expenses. (2) The aggregate of the amounts computed as follows: For each of the preceding three years, 65 percent of the earnedcompensation premiums for that year less all loss and loss expensepayments made upon claims incurred in the corresponding year fromthat 65 percent; except that the amount for each year shall not beless than the present value at 6 percent interest of the determinedand the estimated unpaid claims incurred in that year, including bothbenefits and loss expenses. (b) Not less than one hundred thousand dollars ($100,000). (c) If the aggregate amount computed under subdivision (a) exceedsfifty thousand dollars ($50,000), not more than double the aggregateamount. (d) The commissioner may utilize securities valuation softwareprograms or services to validate the value of securities held inworkers' compensation deposits of insurers authorized to transactworkers' compensation insurance in California as direct writers orreinsurers, or reinsurers of workers' compensation under the class ofdisability.11694.  After the first annual statement to the commissionercovering business of the insurer for a full year in this state, thedeposit required pursuant to Section 11691 shall be computed from thefigures shown in the last preceding report of business as ofDecember 31, filed with the commissioner, and shall be reported tothe commissioner on or before March 1 of each year in a form andmanner prescribed by the commissioner. Notwithstanding anything tothe contrary in this article, should the commissioner determine thatthere has been a material change in the insurer's ultimate liabilityfor future payments upon compensable workers' compensation claims inthis state, at the commissioner's discretion, the amount of thedeposit shall then be fixed by the commissioner at the amount that heor she deems sufficient to secure the payment of the insurer'sultimate obligations on its workers' compensation insurancetransacted in this state, and upon notification from the commissionerthe insurer shall immediately, but in no event less than 30 daysafter notification, increase the deposit as directed.11694.5.  On or before March 1 and May 15 of each year, the insurersor reinsurers subject to Section 11694 shall file a report in theform and manner prescribed by the commissioner that valuates anddetails the deposit as of December 31 of the preceding year and March31 of the current year. The commissioner may require additionalreporting by any insurer or reinsurer when it is deemed necessary.11695.  Where an admitted insurer has voluntarily ceased to do inthis state the business for which a deposit is required pursuant toSection 11691, the deposit shall be fixed by the commissioner at theamount that he or she deems sufficient for the protection of thebeneficiaries of the policies of that insurer.11696.  In the event an insurer not in a delinquency proceedingfails to pay any compensable workers' compensation claim against it,or fails to pay, to the extent of its liability as a reinsurer, anycompensable workers' compensation claim covered by a policy wholly orpartly reinsured by it, the commissioner shall use the proceeds ofthe deposit required pursuant to Section 11691 to pay all thosecompensable workers' compensation claims and related expenses asdescribed in Section 11698.02.11697.  The payment of a workers' compensation claim by thecommissioner shall constitute a satisfaction of the claim to theextent of the payment made. In the event any judgment is entered onthe claim, the commissioner shall file a proportionate satisfactionthereof in the office of the clerk of the court wherein the judgmentis entered.11698.  (a) In the event any one of the eventualities described inparagraph (1), (2), (3), or (4), transpires, the commissioner shallimmediately take control or possession of the deposit requiredpursuant to Section 11691 and may use the deposit to pay or procurethe payment of those compensable workers' compensation claims againstthe insurer, and those expenses described in Section 11698.02. Theproceeds of the deposit shall in that event inure to the commissioneras a trust to be held separate and apart from all other assets ofthe insurer held by the commissioner. They shall be used only for thepurposes set forth and in accordance with the procedures establishedin this article. Once it is determined that there are no remainingundischarged liabilities for compensable workers' compensation claimsor it is actuarially demonstrated that the deposit exceeds thoseliabilities, the commissioner shall transfer the remaining amount ofthe deposit to the general assets of the estate. (1) If the commissioner is named conservator of that insurerpursuant to Article 14 (commencing with Section 1011) of Chapter 1 ofPart 2 of Division 1. (2) The proper court has appointed the commissioner ancillaryreceiver of the insurer or reinsurer. (3) A delinquency proceeding has been instituted by the propercourt against the insurer or reinsurer. (4) If it appears to the commissioner that any of the conditionsset forth in Section 1011 exist or that irreparable loss and injuryto the property and business of the insurer or reinsurer has occurredor may occur unless the commissioner acts immediately without noticeand before applying to the court for any order. (b) If the commissioner has proceeded under subdivision (a) orSection 11696 or 11698.3 and a deposit of securities registered witha qualified depository located in a reciprocal state and in thecustody of a qualified custodian pursuant to Section 1104.9 cannot bereleased to the commissioner according to the terms of the agreemententered into pursuant to Section 11691 or the requirements ofSection 11691.2 because of a delinquency proceeding initiated in thereciprocal state in which the qualified depository is located, or, ifthe deposit of securities registered with a qualified depository hasbeen executed upon at any time by any creditor of an insurer andthat execution has been affirmed by a written opinion of a court ofcompetent federal appellate jurisdiction, the commissioner may, aftera public hearing and upon a finding that deposits of securitiesregistered with that depository do not allow the commissioner todischarge his or her responsibilities as set forth in this chapter,require workers' compensation insurers authorized to transactinsurance in this state to cease and desist making any furtherdeposits authorized by Section 11691 in approved securitiesregistered with that depository. For the purposes of thissubdivision, the term "delinquency proceeding" shall have the samemeaning as contained in subdivision (b) of Section 1064.1.11698.01.  When the commissioner is authorized to proceed underSection 11698 he or she may do either of the following: (a) Subject to Sections 11698.2, 11698.21, and 11698.22, enterinto reinsurance and assumption agreements with one or more admittedsolvent workers' compensation insurers by the terms of whichliability for all those obligations is reinsured and assumed by suchinsurer. (b) Use the deposit required pursuant to Section 11691 to pay orprocure payment of the insurer's compensable workers' compensationclaims and those expenses authorized in Section 11698.02.11698.02.  The proceeds of the deposit required pursuant to Section11691 shall be used solely to pay compensable workers' compensationclaims under the insured or reinsured policies, allocated claimsexpense necessary to pay those claims, and the expenses connectedwith all proceedings or actions permitted or required by this articlein furtherance of the payment of those claims, or should thecommissioner pursuant to subdivision (a) of Section 11698.01 enterinto reinsurance and assumption agreements with one or morereinsurers, the proceeds of the deposit shall be used to reimbursethose reinsurers.11698.1.  From time to time and in any event at or prior to the timeof the filing of his or her petition for discharge as receiver, thecommissioner shall do the following: (a) File with the Workers' Compensation Appeals Board anaccounting of all trust funds received and used from the proceeds ofthe deposit required pursuant to Section 11691. (b) File with the court an accounting of all funds received andused as expenses from the general funds of the insurer.11698.2.  If the commissioner enters into a reinsurance andassumption agreement as provided in subdivision (a) of Section11698.01, that agreement shall provide for all of the following: (a) The reinsurance and assumption of all those obligations by thereinsuring and assuming insurers. (b) If there is more than one reinsurer the proportion of allthose obligations assumed by each reinsurer and a method for theactual processing and payment of those obligations by the reinsurersor their representatives. (c) The reimbursement of the reinsuring and assuming insurers fromthe deposit of the insurer in the delinquency proceeding. Theprovision shall conform with Section 11698.21 and shall not beeffective unless approved by the Workers' Compensation Appeals Board. (d) The amounts, if any, to be paid the reinsurers from thegeneral funds of the insurer. If the agreement provides that amountsfrom the general funds of the insurer are to be paid to thereinsurers, those payments shall be approved by the court where thedelinquency proceedings are pending. (e) Any other matters as are necessary and proper to achieve thepurposes of the reinsurance and assumption agreement.11698.21.  (a) The reimbursement provision referred to insubdivision (c) of Section 11698.2 shall provide for the transfer ofthe securities in the deposit to the deposits of the reinsurers.Thereafter, except as provided in subdivision (b), the deposit of thereinsuring and assuming insurers shall be security for the paymentof all of those obligations assumed by the agreement as well as thoseobligations on workers' compensation insurance transacted in thisstate by the reinsurer, provided, however, that in determining theamount which shall remain on deposit as security for thoseobligations that are reinsured and assumed, the method prescribed byparagraph (1) of subdivision (a) of Section 11693 shall be usedwithout any limitation as to time. In providing for the transfer ofthe securities the agreement may provide for their direct transfer tothe deposit account of the reinsurers, or, if the securitiesdeposited are in denominations or units as to make the equitabletransfer to more than one reinsurer impossible, it may provide eitherfor a formula under which the transfers may be made and differencesin value reconciled by payments or credits among the reinsurers orfor the sale of those securities by the commissioner and thereinvestment of the proceeds in other securities in amounts that canbe so equitably transferred. (b) The agreement shall provide that if it appears that the marketvalue of the securities on deposit will exceed the obligationsassumed by the reinsurers, the commissioner may withhold the transferof a portion of the deposit and may after a two-year period enterinto a final settlement with the reinsurers with respect thereto atwhich time any excess in that deposit shall be transferred to thegeneral assets of the insurer in the delinquency proceeding.11698.22.  The commissioner shall not enter into an agreement withan insurer if its reinsurance and assumption of liability will impairits solvency or render its further transaction of business hazardousunder subdivision (d) of Section 1011.11698.3.  (a) If the insurer is a member insurer of the CaliforniaInsurance Guarantee Association (the association) and has been thesubject of an order of liquidation or receivership with a finding ofinsolvency which has been entered by a court of competentjurisdiction the association then becomes obligated to paycompensable workers' compensation claims arising under the insurer'spolicies, which are otherwise "covered claims" as defined in Article14.2 (commencing with Section 1063) of Chapter 1 of Part 2 ofDivision 2. The commissioner shall immediately take control orpossession of the deposit required pursuant to Section 11691 andshall transfer the deposit to the association. (b) The association shall use the proceeds of the deposit and anyinterest earned thereon, for the payment of compensable workers'compensation claims arising under the insolvent insurer's policiesand which are otherwise covered claims, as defined in Article 14.2(commencing with Section 1063) of Chapter 1 of Part 2 of Division 2,and all expenses related thereto. (c) The association shall make a full report and accounting of thedisposition of the deposit on or in the form and at the times as thecommissioner shall request, including a report of all interestincome earned on the deposit. (d) At the time all of the insolvent insurer's California workers'compensation claims liabilities are discharged, or at the time it isactuarially determined that the remaining proceeds, and any interestearned thereon, exceed those liabilities, the association shallreturn the surplus to the insolvent insurer's estate.11699.  Unless the deposit required pursuant to Section 11691 iswithdrawn by the commissioner pursuant to the authority granted himor her by this article, it, or any remainder thereof, may be repaidto the insurer either upon satisfactory showing to the commissionerthat every liability to pay compensable workers' compensation claimshas been assumed and reinsured with a solvent admitted insurer orfully paid and discharged. In the event the insurer remains admittedfor workers' compensation insurance, or desires to reinsure theinjury, disablement, or death portions of policies of workers'compensation under the class of disability insurance, then it mustmaintain at least the minimum deposit required by Section 11691.11700.  The deposit required pursuant to Section 11691, unlesswithdrawn by the commissioner, shall be used only for the payment ofcompensable workers' compensation claims and expenses as provided inSection 11698.02 as long as there remains unpaid any claim or anypart thereof.11701.  The commissioner may revoke the certificate of authority totransact workers' compensation insurance or to reinsure the injury,disablement, or death portions of policies of workers' compensationunder the class of disability insurance in this state of any insurerfailing to comply with the requirements of this article. The powervested in the commissioner by this section is additional to any andall other powers and remedies vested in the commissioner by law.Failure to make the deposit required by this article within therequired time shall be deemed to constitute a condition of hazard asset forth in Section 1011.11702.  The provisions of this article shall not apply to workers'compensation insurance covering those persons defined as employees bysubdivision (d) of Section 3351 of the Labor Code.11703.  An insurer desiring to write workers' compensation insuranceshall maintain or provide occupational safety and health losscontrol consultation services pursuant to Section 6354.5 of the LaborCode.