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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

128

:
PROPERTY AND CASUALTY INSURANCE RATE REGULATION






Subchapter

001
:
INSURANCE RATES AND STATISTICS










 

§

4687. Workers' compensation and employers' liability insurance; uniform

administration of classifications; reporting of

rates and other information

(a) Every

workers' compensation and employers' liability insurer shall adhere to the

uniform classification system and uniform experience rating plan for such

categories of insurance which are filed with the Commissioner by the advisory

or service organization which has been designated by the Commissioner and

remains subject to his or her approval and designation. However, any insurer

may develop subclassifications of the uniform classification system upon which

a rate may be made; provided, further, that such subclassifications must be

filed for the approval of the Commissioner at least 30 working days prior to

their use and submitted simultaneously, for information only, to the designated

advisory or service organization. The Commissioner shall disapprove any such

subclassifications if the insurer fails to demonstrate that the data thereby

produced can be reported consistent with the uniform statistical plan and

uniform classification system.

(b) The

Commissioner shall designate an advisory or service organization to assist him

or her in gathering, compiling, and reporting relevant statistical information.

Every workers' compensation and employers' liability insurer shall record and

report its workers' compensation and employers' liability insurance experience

to the designated advisory or service organization as set forth in the uniform

statistical plan approved by the Commissioner.

(c) The

designated advisory or service organization shall develop and file manual

rules, subject to the approval of the Commissioner, reasonably related to the

recording and reporting of data pursuant to the uniform statistical plan,

uniform experience rating plan, uniform schedule rating plan, and the uniform

classification system. Every workers' compensation and employers' liability

insurer shall adhere to the approved manual rules and experience rating plan in

the underwriting and statistical reporting of its business. No insurer shall

agree with any other insurer or with an advisory or service organization to

adhere to manual rules which are not reasonably related to the recording and

reporting of data pursuant to the uniform classification system, uniform

experience rating plan, uniform schedule rating plan, or the uniform

statistical plan.

(d) Filings

submitted pursuant to this section shall be filed with the Commissioner at

least 30 working days before the proposed effective date therefor. The

Commissioner may give written notice, within 30 working days of the receipt of

the filing, that he or she needs additional time, not to exceed 30 days from

the date of such notice, to consider the filing. Upon written application of the

designated advisory or service organization, the Commissioner may authorize the

filing to be effective before the expiration of the waiting period or any

extension thereof. A filing shall be deemed to meet the requirements of this

section, unless disapproved by the Commissioner before the expiration of the

waiting period or any extension thereof.

(e) The uniform

experience rating plan to be filed pursuant to this section shall contain

reasonable eligibility standards, provide adequate incentives for loss prevention,

and provide for sufficient premium differentials so as to encourage safety. The

uniform experience rating plan shall be the exclusive means of providing

prospective premium adjustment based upon measurement of the loss producing

characteristics of an individual insured, but insurers may file rating plans

that provide for retrospective premium adjustments based upon an insured's past

experience. (Added 1983, No. 238 (Adj. Sess.), § 1; amended 1989, No. 128 (Adj.

Sess.), § 3.)