342.817 Rating plans, rates, and underwriting standards for different classes of

431 words·~2 min read·/ky/342-817

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

risks -- Competitive nature and filing requirement for rates -- Annual report

on status of surplus.

(1)The authority, through its board and manager, shall establish separate rating plans,

rates, and underwriting standards for different classes of risks for the authority.

(2)The rating plans, rates, and underwriting standards developed for the categories of

risk shall be based on generally accepted actuarial practices and procedures as set

forth in the Statement of Principles Regarding Property and Casualty Ratemaking of

the Casualty Actuarial Society, in accordance with the actuarial standards of

practice and compliance guidelines of the Actuarial Standards Board. The rates

shall be actuarially sound for both the voluntary market and the market of last resort

and set at levels which are expected, in the aggregate, to be sufficient to pay all

workers' compensation claims incurred by the participating employer risks and other

permitted expenses of the authority. The rates for the voluntary market and the

market of last resort shall be filed individually with the commissioner of the

Department of Insurance on forms prescribed by the commissioner by the

promulgation of administrative regulations.

(3)Multitiered premium or rating plans may be developed to provide workers'

compensation coverage to insureds in the Commonwealth.

(4)The manager shall develop statistical and other information as necessary to

distinguish its writings in the voluntary market, and its writings as a market of last

resort.

(5)The rates established by the authority for its policyholders shall be based only on

Kentucky loss experience data, except that other loss experience data may be

utilized as a supplement to Kentucky data if supplemental or additional data are

necessary to establish statistical credibility of an employment classification.

(6)Any and all rates, whether for the voluntary market or the market of last resort,

established by the board are deemed competitive and shall be filed with the

commissioner of insurance in accordance with KRS Chapter 304 in the same

manner as any other mutual insurance company writing workers' compensation in

the Commonwealth.

(7)Notwithstanding any provision of KRS Chapter 304 to the contrary, the surplus

requirements for mutual insurance companies in the Commonwealth shall not apply

to the authority until the authority has been in operation for eighty-four

(84)months,

unless modified by the General Assembly. In addition to other reporting

requirements in KRS 342.809 and 342.821, the authority shall report to the

Economic Development and Workforce Investment Committee of the General

Assembly, no later than October 31 of each year, on the status of its efforts to build

and maintain a surplus as required by KRS Chapter 304.