H-3443.1 _______________________________________________
HOUSE BILL 2252
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Representatives D. Sommers, Fuhrman, Bowman, Moyer, Silver, Van Luven, Chandler and Tate
Prefiled 12/19/91. Read first time 01/13/92. Referred to Committee on Commerce & Labor.
AN ACT Relating to fixing industrial insurance premium rates by statute; amending RCW 51.16.035; creating a new section; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 51.16.035 and 1989 c 49 s 1 are each amended to read as follows:
The department shall classify all occupations or industries in accordance with their degree of hazard and, except as premium rates are otherwise fixed by statute, fix therefor basic rates of premium which shall be the lowest necessary to maintain actuarial solvency of the accident and medical aid funds in accordance with recognized insurance principles. The department shall formulate and adopt rules and regulations governing the method of premium calculation and collection and providing for a rating system consistent with recognized principles of workers' compensation insurance which shall be designed to stimulate and encourage accident prevention and to facilitate collection. The department may annually, or at such other times as it deems necessary to maintain solvency of the funds, readjust rates in accordance with the rating system to become effective on such dates as the department may designate, or may readjust rates as necessary to comply with rates fixed by statute.
The department may insure the workers' compensation obligations of employers as a group if the following conditions are met:
(1) All the employers in the group are members of an organization that has been in existence for at least two years;
(2) The organization was formed for a purpose other than that of obtaining workers' compensation coverage;
(3) The occupations or industries of the employers in the organization are substantially similar, taking into consideration the nature of the services being performed by workers of such employers; and
(4) The formation and operation of the group program in the organization will substantially improve accident prevention and claim management for the employers in the group.
In providing an employer group plan under this section, the department may consider an employer group as a single employing entity for purposes of dividends or premium discounts.
NEW SECTION. Sec. 2. The average industrial insurance premium rate under Title 51 RCW for the 1992 calendar year shall be fixed at a rate no greater than the average industrial insurance premium rate set by the department of labor and industries for calendar year 1991. In implementing this section, the department may adjust the 1992 industrial insurance premium rates to reflect employers' claims experience under the industrial insurance rating system, so long as the average industrial insurance premium rate for 1992 does not exceed the average industrial insurance premium rate in effect in 1991.
NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.