(1) Any employer or employer group, except state agencies specified in 39-71-403 , MCA, may elect to apply to be bound as a self-insurer under plan no. 1, if in accordance with 39-71-2102 , MCA, and ARM 24.29.609, the employer or employer group submits, on forms provided by the department, satisfactory proof of ability to pay the compensation benefits which are reasonably likely to be incurred under the Workers' Compensation and Occupational Disease Acts during the year or the portion of the year for which election under this plan is effective. Approval to be bound as a self-insurer under plan no. 1 will be granted by the department with the concurrence of the guaranty fund.