An Act Regarding Workers' Compensation Insurance Rates for Small Businesses
Maine Legislature, Session 128, LD 0913
Committee: Labor, Commerce, Research and Economic Development
Sponsors: GINZLER, HAMPER, HYMANSON, KINNEY, PARKER, SEAVEY, TUELL, TURNER, VACHON, WINSOR
Amends: 24-A MRSA §2381-C, 24-A MRSA §2382, 24-A MRSA §2382-G

Legislative Document
No. 913
H.P. 641
House of Representatives, March 7, 2017
An Act Regarding Workers' Compensation Insurance Rates for 
Small Businesses
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative GINZLER of Bridgton.
Cosponsored by Senator HAMPER of Oxford and
Representatives: HYMANSON of York, KINNEY of Knox, PARKER of South Berwick, 
SEAVEY of Kennebunkport, TUELL of East Machias, TURNER of Burlington, VACHON of 
Scarborough, WINSOR of Norway.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  24-A MRSA §2381-C, sub-§9-A is enacted to read: 
9-A.  Small business employer.  "Small business employer" means an employer with 
fewer than 50 employees. 
Sec. 2.  24-A MRSA §2382, sub-§2, ¶A, as enacted by PL 1991, c. 885, Pt. B, 
§12 and affected by §13, is amended to read: 
A.  Rates Except as provided in subsection 6, rates in the voluntary market are not 
excessive. 
Sec. 3.  24-A MRSA §2382, sub-§6 is enacted to read: 
6.  Excessive rates for small business employers.  Rates for small business 
employers are excessive if they do not include a modification factor determined pursuant 
to section 2382-G. 
Sec. 4.  24-A MRSA §2382-G is enacted to read: 
§2382-G.  Small business employers 
The following provisions govern the rate modification applicable to small business 
employers. 
1.  Rate review.  The superintendent shall develop and implement a process of 
heightened scrutiny review for rates applicable to small business employers.  This review 
must include, at a minimum, a comparison of the risk to insurers applicable to this class 
of employers and the workers' compensation insurance costs to such employers.  The rate 
review required by this subsection must be conducted periodically, but no less than 
annually. 
2.  Modification factor; rate adjustment.  Based on the information gathered 
through the rate review conducted pursuant to subsection 1, and taking into account the 
standards in section 2382, the superintendent shall develop a modification factor 
applicable to small business employers for the purpose of adjusting rates applicable to 
such employers downward to better match the relative risk to insurers to the relative cost 
burden of workers' compensation insurance costs to such employers.  The superintendent 
shall ensure that all rates of insurers applicable to a small business employer include the 
appropriate modification factor determined according to this section. 
3.  Annual report.  The superintendent and the Workers' Compensation Board shall 
review claims applicable to small business employers and compare the claims data to the 
claims data for the classification as a whole and report their findings to the joint standing 
committee of the Legislature having jurisdiction over labor matters by November 1st of 
each year. 
4.  Rules.  The superintendent may adopt rules to implement this section.  Rules 
adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
Sec. 5.  Application.  The requirements of this Act apply to all policies, contracts 
and certificates executed, delivered, issued for delivery, continued or renewed in this 
State on or after January 1, 2018.  For purposes of this Act, all contracts are deemed to be 
renewed no later than the next yearly anniversary of the contract date. 
SUMMARY 
This bill charges the Superintendent of Insurance with developing a modification 
factor to reduce the workers' compensation insurance rates for employers with fewer than 
employees based on an assessment of the relative risk to the insurer and the relative 
cost burden of the insurance on such small business employers.  The small business 
employer modification factor applies to workers' compensation insurance policies issued 
or renewed on or after January 1, 2018.