Bill > H1031

This bill amends Section 53A of Chapter 152 of the Massachusetts General Laws to establish a new system for setting workers' compensation insurance rates. Key provisions include: 1. Defining important terms like "rate," "prospective loss cost," and "loss cost multiplier (LCM)." 2. Designating a rating organization to file industry-wide classifications of risks, prospective loss costs, and LCMs for both the voluntary market and the reinsurance pool. The Commissioner of Insurance must review and approve these filings to ensure they are reasonable and not excessive, inadequate, or unfairly discriminatory. 3. Allowing individual insurers to submit their own LCM filings, which the Commissioner must review and can disapprove if certain criteria are not met. 4. Permitting the Commissioner to hold a hearing on market competition if the Hirsch-Herfindahl Index rises above a certain level, and potentially require industry-wide rate filings if competition has not sufficiently protected industry and consumer interests. The bill specifies that these new provisions will apply to all new and renewal policies effective on or after January 1, 2014.

Labor and Employment

https://malegislature.gov/Bills/190/H1031