Reference is to Printer's Date 4/13/11-H.
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION ___. Section 38-73-525 of the 1976 Code, as added by Act 111 of 2007, is amended to read:
(A) Each insurer writing
workers' compensation insurance shall adopt the most recent loss
costs within sixty days after approval of these loss costs.
This loss costs adoption must become effective no later than one
hundred twenty days after the effective date of the approved
loss costs. An insurer must notify the department of its
adoption of the most recently approved loss costs by filing a
notification on a form and in a manner prescribed by the
director or his designee. The notification filing required by
this subsection does not constitute a rate filing and is not
subject to prior approval.
(B)(1) At least
thirty sixty days prior
to before using a new rates,
every multiplier for expenses, assessments, profits,
and contingencies, each insurer writing workers'
compensation must shall file its
multiplier for expenses, assessments, profit, and contingencies
and any information relied upon by the insurer to support the
multiplier and any modifications to loss costs. A copy of the
filing must be provided simultaneously to the Consumer Advocate.
The filing Filings submitted
pursuant to item (1) must be filed on a form and in the manner
prescribed by the director or his designee and must contain,
at a minimum, the following information: commission expense;
other acquisition expense; general expense; expenses
associated with recoveries from the Second Injury Fund;
guaranty fund assessments; other assessments; premium taxes;
miscellaneous taxes, licenses, or fees; and
a provision for profit and contingencies, and the date
of approval of the loss costs to which the multiplier is
applied, which must be the most recently approved loss
Rate Filings submitted pursuant
to item (1) are subject to approval of the director or his
designee and must be reviewed by an actuary employed or
retained by the department who is a member of the American
Academy of Actuaries or an associate or fellow of the Casualty
(4)(a) Within the
sixty-day period, if the director or his
or her designee believes the information filed
is not complete, the director or his or her
designee must shall notify the insurer
of additional information to be provided. Within fifteen days
of receipt of the notification, the insurer
must shall provide the requested
information or file for a hearing challenging the reasonableness
of the director's or his or her designee's
request. The burden is on the insurer to justify the denial of
the additional information.
(b) Unless a hearing
is requested, upon expiration of the
thirty-day sixty-day period or the
fifteen-day period, whichever is later, the insurer may use the
rates developed using the multiplier of expenses,
assessments, profit, and contingencies multiplier
for expenses, assessments, profit, and contingencies."
Amend the bill further by adding an appropriately numbered SECTION to read:
/ SECTION ___. Section 38-73-1210 of the 1976 Code is amended to read:
(A)(1) This item applies to
property and casualty insurance but does not apply to workers'
compensation insurance. An insurer may satisfy its
obligation to make required filings by becoming a member of, or
a subscriber to, a licensed rating organization which makes
filings and by authorizing the director or his designee to
accept the filings on its behalf. However, notwithstanding
any other provisions another provision
of this article, no a member or
subscriber may, within twelve months after its
membership or subscribership, may not file to adopt
any a rate approved for use for the
rating organization if the rate is more than the rate in use by
the member or subscriber prior to before
its membership or subscribership in the rating organization.
Further, notwithstanding the provisions of Sections
38-73-1300 , and 38-73-1310, and
38-73-1320, no a member or subscriber,
within twelve months after its membership or
subscribership, may not be granted an upward
deviation from its rate in use when becoming a member or
subscriber. However, if a rate increase for the rating
organization is approved within twelve months after an insurer
becomes a member or subscriber, the member or subscriber may
increase its rates by the same percentage of increase granted
the rating organization. Nothing contained in this chapter may
be construed as requiring any to require
an insurer to become a member of or a subscriber to
any a rating organization.
(2) This item applies to workers' compensation insurance. An insurer may satisfy its obligation to make required filings by becoming a member of, or a subscriber to, a licensed rating organization that makes filings and by authorizing the director or his designee to accept the filings on its behalf. However, a licensed rating organization may not satisfy the insurer's obligation to make filings required pursuant to Section 38-73-525.
(B) In addition to other activities not prohibited by this chapter, a rating organization may collect, compile, and disseminate to insurers compilations of past and current premiums of insurers." /
Renumber sections to conform.
Amend title to conform.