Plain English Breakdown
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
Adjust Experience Modification Factor in Workers' Compensation
The act creates a process for employers and licensed insurance producers to update an employer's experience modification factor when: An open claim is reported by an insurance carrier to the rating bureau with a higher open claim amount than the amount after the claim was closed; and The lower claim amount would reduce an employer's experience modification factor at least .05 compared to the previously released experience modification factor or from above 1.0 to 1.0 or below.
What This Bill Does
- The act creates a process for employers and licensed insurance producers to update an employer's experience modification factor when: An open claim is reported by an insurance carrier to the rating bureau with a higher open claim amount than the amount after the claim was closed; and The lower claim amount would reduce an employer's experience modification factor at least .05 compared to the previously released experience modification factor or from above 1.0 to 1.0 or below.
- The employer must notify the insurance carrier between the time the claim is reported to a rating bureau and 31 days after the employer's rating effective date.
- The insurance carrier is required to credit the employer for a premium change resulting from the revised experience modification factor.
- (Note: This summary applies to this bill as enacted.)
Limits and Unknowns
- This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.