SENATE BILL REPORT

HB 1117

BYRepresentatives Patrick, Vekich, R. King, Sayan, Winsley and McLean; by request of Department of Labor and Industries

Changing conditions for workers' compensation insurance.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):March 20, 1989

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Murray, Saling, Smitherman, West, Williams.

Senate Staff:David Cheal (786-7576)

                  March 20, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 20, 1989

BACKGROUND:

The Department of Labor and Industries offers retrospective rating plans for qualified individual employers or groups of employers.  The retrospective rating plan allows adjustment of the employer's premium after the coverage period, based on the claims costs incurred during that period.

To qualify for a group retrospective rating program, the following conditions must be met:  (1) all employers in the retrospective rating group must belong to an organization that has been in existence for at least two years; (2) the organization must have been formed for a purpose other than obtaining workers' compensation coverage; (3) the occupations or industries of the employers in the organization must be similar; (4) the employers in the retrospective rating group must constitute 50 percent of the total employers in the organization; and (5) the formation of the group program will substantially improve accident prevention and claim management for employers in the group.

SUMMARY:

The requirement is eliminated that the employers in an industrial insurance retrospective rating group constitute at least 50 percent of the total employers in the industry organization sponsoring the retrospective rating group.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Representative Evan Jones (pro); Cliff Finch (pro); Jeff Johnson (con)