(1) A current or former self-insurer or group may transfer existing workers' compensation claim liabilities to another entity upon authorization from the department and concurrence of the Montana self-insurers guaranty fund by:
(a) submitting an application on a form designated by the department;
(b) completing an agreement of assumption and guarantee of workers' compensation liabilities;
(c) submitting a loss portfolio transfer agreement; and
(d) posting a security deposit.
(2) If the assuming entity fails to meet the terms of the transfer agreement, liability reverts to the original self-insurer.
(3) The entity assuming liability for a claim shall comply with all reporting requirements set by the department.
(4) The department shall adopt rules to implement this section.