For the purposes of ARM Title 24, chapter 29, subchapter 6, the following definitions apply:

(1) "Ability to pay" means sufficient financial strength and stability to:

(a) pay debts as they mature;

(b) pay compensation benefits and all liabilities which are likely to be incurred under the Workers' Compensation and Occupational Disease Acts; and

(c) have sufficient cash or cash equivalents, security deposit, and excess insurance to make benefit and compensation payments as they come due.

(2) "Applicant" means an employer or employer group that makes an election to self-insure under compensation plan no. 1, regardless of whether the election is a new election or a renewal of a prior election.

(3) "Audited financial statements" means a set of documents that includes the applicant's: income statement, balance sheet, statement of cash flow, notes to the financial statements, and a signed, dated independent certified public accountant's independent audit report.

(4) "Claims summary" means a compilation of information relating to prior and existing claims made under the Workers' Compensation and Occupational Disease Acts of Montana, showing by policy year, the total number of medical and indemnity claims, total compensation benefits paid and the total amount reserved for future liabilities.

(5) "Compensation benefits" means wage loss, legal, medical, rehabilitation and all other benefits that are payable under the Montana Workers' Compensation and Occupational Disease Acts, including assessments or financial obligations.

(6) "Department" means the Montana department of labor and industry.

(7) "Employer" means an "employer" as defined in 39-71-117 (1) , MCA, except those state agencies that are excluded from the definition pursuant to 39-71-403 , MCA.

(8) "Employer group" means employers engaged in the same trades, businesses, occupations or professions who are members of an association which was formed for purposes other than becoming a self-insurer and has existed for a period of at least two years.

(9) "Guaranty fund" means the Montana self-insurers guaranty fund, established pursuant to 39-71-2609 , MCA.

(10) "Public employer" means a city, county, city and county, school district, irrigation district, all other districts established by law, and all public corporations and quasi-public corporations and public agencies therein.

(11) "Reviewed financial statements" means a set of documents that includes the applicant's: income statement, balance sheet, statement of cash flow, notes to the financial statements, and a signed, dated statement from an independent certified public accountant expressing limited assurance that there are no material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles.