806 KAR 52:030. Workers’ compensation
self-insured group rate, rule and form filings.
RELATES TO: KRS 304.4-010, 304.13-053,
304.14-120, 304.50-010, 304.50-115
STATUTORY AUTHORITY: KRS 304.4-010,
304.50-010(2), 304.50-115
NECESSITY, FUNCTION, AND CONFORMITY: KRS
304.50-010(2), authorizes the Executive Director of the Office of Insurance to
promulgate administrative regulations as necessary to govern admission
certification and regulation of workers’ compensation self-insured groups. KRS
304.50-115, requires workers’ compensation self-insured groups to file rates,
supplementary rating information and coverage form filings with the executive
director. This administrative regulation establishes workers’ compensation
self-insured group rate, rule and form filing procedures.
Section 1. Definitions. (1)
"Coverage form" is defined in KRS 304.50-015(10).
(2) "Executive director" means
the Executive Director of the Office of Insurance.
(3) "Office" means the Office
of Insurance.
(4) "Self-insured group" is defined
in KRS 304.50-015(29).
Section 2. General Filing Requirements.
(1) Every self-insured group shall file with the executive director its
coverage forms, rates, loss costs, rating plans, rating rules, underwriting
rules or guidelines, statistical plans, supporting information, supplementary
information and premium payment plans accompanied by a completed and signed
Form WC SIG F-1A P&C, "Face Sheet and Verification Form for Workers
Compensation Self-Insured Groups".
(2) All filings shall include two (2)
full document sets on 8 1/2 in. x 11 in. white paper with three (3) cover
letters and a self-addressed stamped envelope.
(3) A filing may include any number of
documents, filed together on a particular date. Rates, loss costs, and rules
shall be filed separately from coverage forms.
(4) KRS 304.4-010(2) requires all fees
and charges payable under the insurance code to be collected in advance. The
period of time in which the executive director may affirmatively approve or
disapprove the filing shall not begin until a complete filing and the
appropriate fee, as set forth in 806 KAR 4:010, Section 1(21), is received.
Section 3. Rate and Rule Filings. (1)
Form WC SIG: S-1 P & C, "Filing Synopsis for Rates and or Rules"
shall be filed with all rate or rule filings.
(2)(a) Form WC SIG: LC-1 P & C,
"Calculation of Loss Cost Multiplier" shall be filed with all rate
filings referencing loss costs formulated by any advisory organization.
(b) Form WC SIG LC-2 P & C,
"Expense Constant Supplement" shall be filed with all rate filings
referencing loss costs formulated by an advisory organization in which an
expense constant is used.
(3) Form WC SIG: EMA P & C,
"E-Mod Affidavit" shall be filed with all rate or rule filings
containing experience modification factors.
(4)(a) All rate or rule filings
containing schedule rating plans shall identify the characteristics of the risk
not reflected in an experience modification factor.
(b) Any application of the schedule
rating plan shall be based on evidence contained in the self-insured group’s
file at the time it is applied. The schedule rating plan debit or credit
factor(s) applied shall be made available to the member upon request.
(c) If the reason for application of any
schedule debit is corrected by the member to the satisfaction of the
self-insured group, the debit may be removed when evidence of the correction is
received by the group.
Section 4. Coverage Form Filings. (1)
Form WC SIG: S-2 P & C, "Filing Synopsis Form" and Form WC SIG:
F-2 P & C, "Forms Index" shall be filed with all coverage form
filings.
(2) A coverage form shall not be used
until it has been approved by the executive director. If the rates pertaining
to a coverage form are required by law to be filed with or approved by the
executive director, the coverage form shall not be used until the appropriate
rates have been filed or approved as required.
(3) A filing which amends, replaces, or
supplements a coverage form previously filed and approved shall include an
explanation setting forth all changes contained in the newly filed coverage
form, the effect, if any, the changes have upon the hazards purported to be
assumed by the policy, and an explanation as to the effect on the rates
applicable thereto.
(4) A change of signature of the
executing officer on a coverage form shall not, because of this change alone,
require a new filing.
Section 5. Advisory Organization Filings.
(1) A self-insured group that is a member, subscriber, or service purchaser of
an advisory organization, statistical agent or forms provider may choose to
adopt coverage forms, rating plans, rating rules, rating schedules, other
supplementary rating information, underwriting rules or guidelines, or
statistical plans of that advisory organization or statistical agent by doing so
in accordance with the procedures established in this administrative regulation
and shall clearly identify each filing of the advisory organization or
statistical agent it is adopting.
(2) If a self-insured group chooses to
adopt only a specific filing of an advisory organization, statistical agent, or
form provider it shall do so in accordance with the procedures established in
this administrative regulation, and shall clearly identify which filing of the
advisory organization or statistical agent it is adopting. Loss cost filings
shall be specifically adopted.
(3)(a) If a self-insured group chooses to
adopt all of the current and future coverage forms, rating plans, rating rules,
rating schedules, other supplementary rating information, underwriting rules or
guidelines and statistical plans, excluding loss costs, of an advisory
organization, statistical agent, or forms provider, it may file written notice
with the executive director that it is adopting by blanket reference all of the
current and future coverage forms, rating plans, rating rules, rating
schedules, other supplementary rating information, underwriting rules or
guidelines and statistical plans, excluding loss costs, as filed by the
advisory organization, statistical agent, or forms provider. Loss cost filings
shall not be adopted on this blanket reference basis.
(b) If a self-insured group previously
notified the executive director of its adoption of all current and future
filings, excluding loss cost filings, by the advisory organization, statistical
agent, or forms provider and chooses not to adopt certain coverage forms,
rating plans, rating rules, rating schedules, other supplementary rating information,
underwriting rules or guidelines, or statistical plans, the group shall file
notice of the nonadoption with the executive director and shall pay the
appropriate filing fee, as set forth in 806 KAR 4:010, Section 1(21).
1. If a self-insured group previously
notified the executive director of its adoption of all current and future
filings, excluding loss cost filings, by the advisory organization, statistical
agent, or forms provider and chooses to delay the effective date of its
adoption, it shall submit a letter to the executive director requesting the
revised date upon which it will adopt the filing.
2. The delayed adoption date shall be
within six (6) months of the original effective date.
3. If additional time is needed, a second
letter shall be submitted to the executive director, requesting a revised
delayed adoption date.
4. All revised delayed adoption dates
shall be within one (1) year of the original effective date as filed by the
advisory organization, statistical agent or forms provider.
5. If a self-insured group fails to adopt
the advisory organization, statistical agent, or forms provider filing within
one (1) year of the original effective date as filed by the advisory
organization, statistical agent or forms provider, the insurer shall submit a
filing to the executive director indicating it is nonadopting.
Section 6. Incorporation by Reference.
(1) The following material is incorporated by reference:
(a) Form WC SIG: F-1A P & C,
"Face Sheet and Verification Form for Workers Compensation Self Insurance
Groups," March 2005, Office of Insurance;
(b) Form WC SIG: F-2 P & C,
"Forms Index," March 2005, Office of Insurance;
(c) Form WC SIG: S-1 P & C,
"Filing Synopsis for Rates and or Rules," March 2005, Office of
Insurance;
(d) Form WC SIG: S-2 P & C,
"Filing Synopsis Form," March 2005, Office of Insurance;
(e) Form WC SIG: LC-1 P & C,
"Calculation of Loss Cost Multiplier," March 2005, Office of
Insurance;
(f) Form WC SIG: LC-2 P & C,
"Expense Constant Supplement," March 2005, Office of Insurance; and
(g) Form WC SIG: EMA P & C,
"E-mod Affidavit," March 2005, Office of Insurance.
(2) This material may be inspected,
copied, or obtained, subject to applicable copyright law, from the Office of
Insurance, 215 West Main Street, Frankfort, Kentucky 40601, Monday through
Friday, 8 a.m. to 4:30 p.m. This material is also available on the Office of Insurance
Internet Web site http://doi.ppr.ky.gov/kentucky. (31
Ky.R. 2068; 32 Ky.R. 503; eff. 10-7-2005; TAm eff. 10-9-2008.)