H-4324.1 _______________________________________________
HOUSE BILL 3077
_______________________________________________
State of Washington 55th Legislature 1998 Regular Session
By Representative Koster
Read first time 01/28/98. Referred to Committee on Commerce & Labor.
AN ACT Relating to premium rates for industrial insurance classifications having discounted and nondiscounted rates; and amending RCW 51.16.035.
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 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.
Whenever the department establishes a discounted and nondiscounted rate for an occupation or industry, or readjusts such rates, the nondiscounted basic rate of premium shall be fixed at the rate of premium that is the lowest necessary to maintain actuarial solvency of the accident and medical aid funds in accordance with recognized insurance principles. The department shall provide a report to the chairs of the senate and house of representatives committees on commerce and labor, or their successor committees, written justification, including actuarial information, for the discounted and nondiscounted rates as fixed, within thirty days of the fixing or readjustment of the rates. The department shall also provide in its report its actuarial justification of the provision of a discount. Within thirty days of the effective date of this section, the department shall provide a report to the chairs covering all discounted and nondiscounted rates adopted before the effective date of this section.
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.
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