Wash. Rev. Code » Title 51 · Chapter 51.14
Revised Code of Washington

Wash. Rev. Code § 51.14.060 (2026)

✓ current as of May 2026
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*** CHANGE IN 2026 *** (SEE 6039-S.SL) ***
(1) The director may, in cases of default upon any obligation under this title by the self-insurer, after ten days notice by certified mail to the defaulting self-insurer of the intention to do so, bring suit upon such bond or collect the interest and principal of any of the securities as they may become due or sell the securities or any of them as may be required or apply the money deposited, all in order to pay compensation and discharge the obligations of the defaulting self-insurer under this title.
(2) The director shall be authorized to fulfill the defaulting self-insured employer's obligations under this title from the defaulting self-insured employer's deposit or from other funds provided under this title for the satisfaction of claims against the defaulting self-insured employer. The defaulting self-insured employer is liable to and shall reimburse the director for the amounts necessary to fulfill the obligations of the defaulting self-insured employer that are in excess of the amounts received by the director from any bond filed, or securities or money deposited, by the defaulting self-insured employer pursuant to chapter 51.14 RCW. The amounts to be reimbursed shall include all amounts paid or payable as compensation under this title together with administrative costs, including attorneys' fees, and shall be considered taxes due the state of Washington.
(3) The department shall transfer the balance of any defaulted self-insured employer's deposit as required by RCW 51.14.020 into the insolvency trust fund when the following have occurred:
(a) All claims against the defaulted self-insured employer are closed; and
(b) The self-insured employer has been in default for ten years.
[ 2010 c 213 s 2; 1986 c 57 s 2; 1971 ex.s. c 289 s 31.]

Notes:

Intent—1986 c 57: See note following RCW 51.14.077.
Notes of Decisions
Cited in 3 cases, 1980–2014 · leading case: Johnson v. Tradewell Stores, Inc., 630 P.2d 441 (Wash. 1981).
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Johnson v. Tradewell Stores, Inc., 630 P.2d 441 (Wash. 1981). · cites it 2× “RCW 51.14.060 and.070. Accordingly, as long as a self-insured employer promptly pays awarded benefits, or increases thereto, the escrow account is not affected.”
Dellen Wood Prods., Inc. v. Dep't of Labor & Indus., 319 P.3d 847 (Wash. Ct. App. 2014). · cites it 5× “As an alternative to defaulting under RCW 51.14.060, an employer may “terminate” its self-insured status under RCW 51.”
Maxwell v. Dep't of Labor & Indus., 607 P.2d 310 (Wash. Ct. App. 1980). “In the second place, it is clear from the statutory scheme that the "escrow account" is subject to invasion only when and if the self-insured employer defaults on an order to compensate an employee or fails to pay administrative assessments, RCW 51.14.060 and .070. The escrow…”
— Wash. Rev. Code § 51.14.060(1) — 1 case
Dellen Wood Prods., Inc. v. Dep't of Labor & Indus., 319 P.3d 847 (Wash. Ct. App. 2014). “As an alternative to defaulting under RCW 51.14.060, an employer may “terminate” its self-insured status under RCW 51.”
— Wash. Rev. Code § 51.14.060(2) — 1 case
Dellen Wood Prods., Inc. v. Dep't of Labor & Indus., 319 P.3d 847 (Wash. Ct. App. 2014). “As an alternative to defaulting under RCW 51.14.060, an employer may “terminate” its self-insured status under RCW 51.”
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