WSR 07-03-125

EMERGENCY RULES

DEPARTMENT OF

LABOR AND INDUSTRIES

[ Filed January 22, 2007, 4:31 p.m. , effective January 22, 2007 ]


     Effective Date of Rule: Immediately.

     Purpose: Chapter 296-17 WAC, General reporting rules, classifications, audit, and recordkeeping, rates and rating system for Washington workers' compensation insurance (2007 workers' compensation premium rates), this emergency rule-making order will add WAC 296-17-891, 296-17-86505, and 296-17-86507.

     Citation of Existing Rules Affected by this Order: New sections WAC 296-17-891, 296-17-86505, and 296-17-86507.

     Statutory Authority for Adoption: RCW 51.16.035 Base rates, 51.32.073 Supplemental pension, 51.08.010 Retrospective rating and 51.04.020(1) General authority.

     Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

     Reasons for this Finding: During the implementation of the 2007 rates and any necessary table adjustments, we did not identify the claim-free employers with a potential negative impact. This caused 2007 rates to go up for some employers who have not had a compensable claim during the three-year experience rating period. A new claim-free table is being added, WAC 296-17-891; and WAC 296-17-86505 and 296-17-86507 are being added to provide language explaining the role the new claim-free discount table plays in the calculation of the experience modification factor for comparison of years 2006 and 2007. Without this emergency rule making we would continue to collect premiums above and beyond what we committed to in the recent rates notice. Therefore, these rules are necessary to ensure we are collecting appropriate premiums and the general welfare of those that are covered by the industrial insurance laws.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 3, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 3, Amended 0, Repealed 0.

     Date Adopted: January 22, 2007.

Judy Schurke

Acting Director

OTS-9518.1


NEW SECTION
WAC 296-17-891   Table IV-A.  

Alternate "old" 2007 method

Maximum experience modifications

for firms with no compensable accidents:

Effective 1/1/2007 to 12/31/2007



Expected Loss Range Maximum Experience Modification
1 - 2,995 0.90
2,996 - 3,644 0.89
3,645 - 4,322 0.88
4,323 - 5,031 0.87
5,032 - 5,777 0.86
5,778 - 6,558 0.85
6,559 - 7,381 0.84
7,382 - 8,246 0.83
8,247 - 9,157 0.82
9,158 - 10,120 0.81
10,121 - 11,137 0.80
11,138 - 12,214 0.79
12,215 - 13,355 0.78
13,356 - 14,569 0.77
14,570 - 15,860 0.76
15,861 - 17,237 0.75
17,238 - 18,708 0.74
18,709 - 20,285 0.73
20,286 - 21,977 0.72
21,978 - 23,799 0.71
23,800 - 25,767 0.70
25,768 - 27,898 0.69
27,899 - 30,213 0.68
30,214 - 32,738 0.67
32,739 - 35,502 0.66
35,503 - 38,542 0.65
38,543 - 41,900 0.64
41,901 - 45,629 0.63
45,630 - 49,793 0.62
49,794 - 54,476 0.61
54,477 & Higher 0.60

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OTS-9527.2


NEW SECTION
WAC 296-17-86505   2007 Alternative claim-free experience modification calculation.   The following experience modification factor calculation is similar to the experience rating calculation used in 2006 for employers with no compensable accident during the experience period. The experience modification factor shall be calculated the same way as WAC 296-17-860 with the following exceptions:

     (1) In WAC 296-17-885, the Expected Loss Rate and Primary Ratio Table IIIA shall be used instead of Table III.

     (2) The Maximum Experience Modification Table IVA in WAC 296-17-891 shall be used instead of Table IV in WAC 296-17-890.

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NEW SECTION
WAC 296-17-86507   2007 Claim-free experience modification phase-in limitation.   For calendar year 2007, if the experience modification factor using WAC 296-17-860 is greater than 100% of the experience modification factor using WAC 296-17-86505, then the experience modification factor shall be limited to 100% of the factor using WAC 296-17-86505.

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