S-2557.1 _______________________________________________
SENATE BILL 6216
_______________________________________________
State of Washington 57th Legislature 2001 Third Special Session
By Senators Honeyford, McCaslin, Hochstatter, Deccio, Hewitt, Long, Rossi, Benton, Horn, Parlette, Swecker, Hale, Sheahan, Oke, Stevens, Johnson, Finkbeiner, Zarelli, Morton and McDonald
Read first time 07/20/2001. Referred to Committee on Labor, Commerce & Financial Institutions.
AN ACT Relating to industrial insurance funds; amending RCW 51.16.035; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 51.16.035 and 1999 c 7 s 8 are each amended to read as follows:
(1) The department
shall classify all occupations or industries in accordance with their degree of
hazard and fix therefor basic premium 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)) as
required in subsection (2) of this section. 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)) comply with
subsection (2) of this section, readjust rates in accordance with the
rating system to become effective on such dates as the department may
designate.
(2) The department must fix basic premium rates that are the lowest necessary to maintain actuarial solvency of the accident and medical aid funds in accordance with recognized insurance principles, subject to the following:
(a) If on June 30th of any year, the balance in the accident fund attributable to contingency reserve exceeds ten percent of the sum of actuarial loss estimates and other financial statement liabilities as of that June 30th, the department shall implement by September 1st of that year refunds to employers in a total amount that approximates the excess amount in the fund.
(b) If on June 30th of any year, the balance in the medical aid fund attributable to contingency reserve exceeds ten percent of the sum of actuarial loss estimates and other financial statement liabilities as of that June 30th, the department shall fix basic medical aid fund premium rates for the following calendar year at a level that will reduce revenue to the medical aid fund in an amount that approximates the excess amount in the fund.
(3) In providing a retrospective rating plan under RCW 51.18.010, the department may consider each individual retrospective rating group as a single employing entity for purposes of dividends or premium discounts.
NEW SECTION. Sec. 2. 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 takes effect immediately.
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