Kentucky Statutes 304.13-167 – Workers’ compensation insurers — Uniform classification and experience rating systems — Reporting — Subclassifications, rating plans, and other variations from manual rules — Credit for drug-free workplace program
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(1) Every workers’ compensation insurer shall adhere to a uniform classification system and uniform experience rating system filed with the commissioner by an advisory organization designated by the commissioner.
(2) Every workers’ compensation insurer shall report its experience in accordance with the statistical plans and other reporting requirements in use by an advisory organization designated by the commissioner.
(3) A workers’ compensation insurer may develop subclassifications of the uniform classification system upon which rates may be made. These subclassifications and their filing shall be subject to the provisions of this chapter applicable to filings generally.
(4) A workers’ compensation insurer may develop rating plans which identify loss experience as a factor to be used. These rating plans and their filing shall be subject to the provisions of this chapter applicable to filings generally.
(5) The commissioner shall disapprove subclassifications, rating plans, or other variations from manual rules filed by a workers’ compensation insurer if the insurer fails to demonstrate that the data thereby produced can be reported consistent with the uniform classification system and experience rating system and in such a fashion so as to allow for the application of experience rating filed by the advisory organization.
(6) The commissioner shall approve rating plans for workers’ compensation insurance that give specific identifiable consideration in the setting of rates to employers who implement a drug-free workplace program pursuant to administrative regulations adopted by the Department of Workers’ Claims in the Education and Labor Cabinet. The plans shall take effect January 1, 2008, shall be actuarially sound, and shall state the savings anticipated to result from such drug-free workplace programs. The credit shall be at least five percent (5) unless the commissioner determines that five percent (5) is actuarially unsound. The commissioner is also authorized to develop a schedule of premium credits for workers’ compensation insurance for employers who have safety programs that contain certain criteria for safety programs. The commissioner shall consult with the commissioner of the Department of Workers’ Claims in the Education and Labor Cabinet in setting such criteria. A drug-free workplace credit under this subsection shall not be available to employers who receive a credit under KRS § 304.13-412 or KRS Chapter 351.
Effective:July 1, 2022
History: Amended 2022 Ky. Acts ch. 236, sec. 109, effective July 1, 2022. — Amended 2010 Ky. Acts ch. 24, sec. 1134, effective July 15, 2010. — Amended
2007 Ky. Acts ch. 93, sec. 3, effective March 23, 2007. — Created 2000 Ky. Acts ch. 380, sec. 11, effective July 14, 2000.
(2) Every workers’ compensation insurer shall report its experience in accordance with the statistical plans and other reporting requirements in use by an advisory organization designated by the commissioner.
Terms Used In Kentucky Statutes 304.13-167
- advisory organization: is a ny entity, including its affiliates or subsidiaries, which either has two (2) or more member insurers or is controlled either directly or indirectly by two (2) or more insurers and which assists insurers in ratemaking related activities. See Kentucky Statutes 304.13-011
- classification: means the process of grouping risks with similar risk characteristics so that differences in cost may be recognized. See Kentucky Statutes 304.13-011
- Experience rating: means a rating procedure utilizing past insurance experience of the individual policyholder to forecast future losses by measuring the policyholder's loss experience against the loss experience of policyholders in the same classification to produce a prospective premium credit, debit, or unity modification. See Kentucky Statutes 304.13-011
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(3) A workers’ compensation insurer may develop subclassifications of the uniform classification system upon which rates may be made. These subclassifications and their filing shall be subject to the provisions of this chapter applicable to filings generally.
(4) A workers’ compensation insurer may develop rating plans which identify loss experience as a factor to be used. These rating plans and their filing shall be subject to the provisions of this chapter applicable to filings generally.
(5) The commissioner shall disapprove subclassifications, rating plans, or other variations from manual rules filed by a workers’ compensation insurer if the insurer fails to demonstrate that the data thereby produced can be reported consistent with the uniform classification system and experience rating system and in such a fashion so as to allow for the application of experience rating filed by the advisory organization.
(6) The commissioner shall approve rating plans for workers’ compensation insurance that give specific identifiable consideration in the setting of rates to employers who implement a drug-free workplace program pursuant to administrative regulations adopted by the Department of Workers’ Claims in the Education and Labor Cabinet. The plans shall take effect January 1, 2008, shall be actuarially sound, and shall state the savings anticipated to result from such drug-free workplace programs. The credit shall be at least five percent (5) unless the commissioner determines that five percent (5) is actuarially unsound. The commissioner is also authorized to develop a schedule of premium credits for workers’ compensation insurance for employers who have safety programs that contain certain criteria for safety programs. The commissioner shall consult with the commissioner of the Department of Workers’ Claims in the Education and Labor Cabinet in setting such criteria. A drug-free workplace credit under this subsection shall not be available to employers who receive a credit under KRS § 304.13-412 or KRS Chapter 351.
Effective:July 1, 2022
History: Amended 2022 Ky. Acts ch. 236, sec. 109, effective July 1, 2022. — Amended 2010 Ky. Acts ch. 24, sec. 1134, effective July 15, 2010. — Amended
2007 Ky. Acts ch. 93, sec. 3, effective March 23, 2007. — Created 2000 Ky. Acts ch. 380, sec. 11, effective July 14, 2000.