H.B. 27 Enrolled

1

WORKERS' COMPENSATION RATE FILINGS
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Todd E. Kiser
5 Senate Sponsor: John L. Valentine
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Insurance Code to address workers' compensation rate filings.
10 Highlighted Provisions:
11 This bill:
12 . establishes procedures for workers' compensation insurance tiered rate filings.
13 Money Appropriated in this Bill:
14 None
15 Other Special Clauses:
16 None
17 Utah Code Sections Affected:
18 ENACTS:
19 31A-19a-408, Utah Code Annotated 1953
20
21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 31A-19a-408 is enacted to read:
23 31A-19a-408. Procedures for workers' compensation tiered rate filings.
24 (1) Notwithstanding Section 31A-19a-214 and subject to the other provisions of this
25 section, a workers' compensation insurer may file with the commissioner a rate filing for
26 workers' compensation insurance that provides for a plan with more than one rate tier for a
27 single insurer or an insurer group with common ownership if the filing shows that:
28 (a) each tier is established on underwriting rules that are based on criteria that would
29 lead to a logical distinguishing of potential risk; and

30 (b) supporting actuarial analysis or other information that shows a clear distinction
31 between the following for each tier:
32 (i) expected losses and expenses; and
33 (ii) actual losses and expenses.
34 (2) A workers' compensation insurer shall file with the commissioner an update of the
35 actuarial analysis or other information required under Subsection (1)(b) at least every three
36 years.
37 (3) A workers' compensation insurer may apply underwriting expertise and judgment in
38 the tier placement process, except that underwriting expertise and judgment shall:
39 (a) be applied in a prudent manner; and
40 (b) when applied, be fair, reasonable, and fully documented.