Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 67.00 - Workers' Compensation Self-insurance Groups › Section 67.09 - Uniform Classification System; Premium Contributions; Application to Make Own Rates; Audits

Current through Register 1525, July 5, 2024
(1) Every group
			 shall comply with the uniform classification system, uniform experience rating
			 plan, including the All Risk Adjustment Program (ARAP), other experience rating
			 plans the Commissioner may approve, and manual rules filed with the
			 Commissioner by an advisory organization designated by the
			 Commissioner.
(2) Experience
			 modifications for members shall be calculated, at the expense of the group, by
			 an organization designated by the Commissioner, and shall be used by all
			 groups. Members changing from one group to another, or returning to the insured
			 workers' compensation market shall carry their experience modifications with
			 them. The Commissioner shall develop a plan and schedule for implementing 211
			 CMR 67.09(2). Any self-insurance group which is composed of more than 1,000
			 members and has been in existence for a period of five consecutive years as of
			 December 31, 1999 and which remains in compliance with the net worth
			 requirements of both
			 211 CMR
			 67.08(2)(c)  and
			 67.10
			 shall not be required to have its members experience rated pursuant to the
			 uniform experience rating plan filed with and approved by the
			 Commissioner.
(3) Premium
			 contributions to a group shall be determined by applying the manual rates and
			 rules to the appropriate classification of each member and adjusting the
			 premium by each member's experience credit or debit. Subject to approval by the
			 Commissioner, premium contributions may also be reduced by an advance premium
			 discount reflecting the group's expense levels and loss experience.
(4) A group may apply to the Commissioner for
			 authority to make its own rates. Such rates shall be filed with the
			 Commissioner and shall be based upon at least two fund years, consisting of not
			 less than 24 months, of the group's experience, to the extent actuarially
			 credible. A public employer safety group in operation for at least two
			 consecutive years before it applies for approval to operate as a public
			 employer group, may apply to the Commissioner to make its own rates
			 immediately. In no event shall a group determine members' premium contributions
			 by any method other than that prescribed herein without the prior written
			 approval of the Commissioner. In no event shall a group make a distribution to
			 its members, other than dividends, without the prior written approval of the
			 Commissioner.
(5) Each group shall
			 be audited at least annually by an independent auditor, selected and
			 compensated by the group, and subject to the approval of the Commissioner, to
			 verify proper classifications, experience rating, payroll and rates. A report
			 of the audit shall be filed with the Commissioner on or before the last day of
			 the sixth month following the end of the group's fund year in a form acceptable
			 to him or her. The group or any member may request a hearing on any objections
			 to the classifications. If the audit shows that, as a result of an improper
			 classification, a member's premium contribution is insufficient, the group
			 shall assess that member an amount equal to the deficiency. If the audit shows
			 that as a result of an improper classification a member's premium contribution
			 is excessive, the group shall refund to the member the excess
			 collected.