SB 26-175

Senate Bill 26-175 adjusts how employers' workers' compensation insurance costs are calculated based on past claims. If an insurance company reports a higher claim amount for an open case than previously stated and this change would lower the employer's experience modification factor by at least .05 or bring it below 1.0, the bill requires the employer to notify their insurer within 31 days of the rating effective date. The insurer must then adjust the premium costs accordingly. This affects employers who have workers' compensation insurance and could lead to lower premiums if claims are reassessed. Since the bill has been signed, it is now law and its provisions will be implemented as described.

Official Summary

The bill 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; andThe 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 the reengrossed version of this bill as introduced in the second house.)

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