H.B. 27

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 Committee Note:
9 The Business and Labor Interim Committee recommended this bill.
10 General Description:
11 This bill modifies the Insurance Code to address workers' compensation rate filings.
12 Highlighted Provisions:
13 This bill:
14 . establishes procedures for workers' compensation insurance tiered rate filings.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 ENACTS:
21 31A-19a-408, Utah Code Annotated 1953
22
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 31A-19a-408 is enacted to read:
25 31A-19a-408. Procedures for workers' compensation tiered rate filings.
26 (1) Notwithstanding Section 31A-19a-214 and subject to the other provisions of this
27 section, a workers' compensation insurer may file with the commissioner a rate filing for

28 workers' compensation insurance that provides for a plan with more than one rate tier for a
29 single insurer or an insurer group with common ownership if the filing shows that:
30 (a) each tier is established on underwriting rules that are based on criteria that would
31 lead to a logical distinguishing of potential risk; and
32 (b) supporting actuarial analysis or other information that shows a clear distinction
33 between the following for each tier:
34 (i) expected losses and expenses; and
35 (ii) actual losses and expenses.
36 (2) A workers' compensation insurer shall file with the commissioner an update of the
37 actuarial analysis or other information required under Subsection (1)(b) at least every three
38 years.
39 (3) A workers' compensation insurer may apply underwriting expertise and judgment in
40 the tier placement process, except that underwriting expertise and judgment shall:
41 (a) be applied in a prudent manner; and
42 (b) when applied, be fair, reasonable, and fully documented.




Legislative Review Note
as of 11-18-10 10:40 AM

Office of Legislative Research and General Counsel