Bill > H1746

This bill aims to update the regulations surrounding workers' compensation insurance rates by clarifying definitions and processes related to "prospective loss cost," which is the portion of an insurance rate based on historical and projected future losses, and the "loss cost multiplier" (LCM), which accounts for a company's expenses, profit, and variations in its loss experience compared to the industry. Specifically, it mandates that a designated rating organization will file industry-wide prospective loss costs and LCMs for the workers' compensation market, including both voluntary insurance and a reinsurance pool, with the Commissioner of Insurance for approval. The Commissioner will hold hearings to ensure these filings are reasonable, equitable, and not unfairly discriminatory, with specific timelines for decisions and appeals. The bill also outlines procedures for individual insurance companies to file their own LCMs, especially for retrospectively rated or large deductible policies, and establishes conditions under which the Commissioner can order the designated rating bureau to file overall industry rates instead of relying on individual company LCMs if market competition is found to be insufficient. These changes are intended to apply to new and renewal policies effective on or after January 1, 2014.