Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 770 - WORKERS' COMPENSATION INSURANCE; PROFESSIONAL HOCKEY PLAYERS › Section 031-770-4 - Requirements

Current through 2024-29, July 17, 2024
A. Every insurer which issues a workers'
				compensation insurance policy to a professional hockey team shall reduce the
				premium for that policy as required by law and as further defined in this Rule
				to reflect the team's contractual obligations, pursuant to either one or more
				collective bargaining agreements or individual player contracts or both, to
				continue salary and medical benefits during the course of any injury.
B. Any professional hockey team which seeks
				to have its workers' compensation insurance premium adjusted pursuant to this
				Rule, shall provide a copy of any and all contracts containing obligations
				which justify workers' compensation premium reductions to the insurer at such
				times as the insurer may reasonably require to ascertain the existence and
				terms of continuing obligations. The final audited premium applicable to the
				team for each policy period shall reflect the obligations of the
				insurer.
C. Upon the receipt of the
				contracts referred to in subsection B above, the insurer or the applicable
				advisory organization, if any, shall calculate a premium reduction reasonably
				commensurate with the reduction in exposure on the policy. Insurers and
				advisory organizations shall assume for purposes of this calculation that
				insurers are not responsible for salary continuation and medical benefits which
				the employer is contractually obligated to provide to players during the course
				of any injury even if the employer defaults on its obligations. The premium
				reduction so calculated shall be applied to the policy. If the employer should
				default on its contractual salary continuation and medical obligations to
				injured workers, however, the insurer shall remain responsible for the
				provision of all benefits to injured employees required pursuant to Title 39-A
				M.R.S.A.
D. Every insurer which is
				required to reduce the workers' compensation insurance premium of a
				professional hockey team to reflect the team's contractual obligations to
				players for salary continuation and medical benefits in the event of an injury
				may endorse its workers' compensation insurance policy issued to the team to
				exclude coverage for those obligations assumed by the team in support of the
				premium reduction to the extent those obligations are actually met by the
				team.
E. As an alternative to the
				procedures set forth in subsections C and D, above, and to the extent it is
				permitted by the contractual obligations of the team to its players, an insurer
				and a professional hockey team may agree that benefits otherwise payable to
				injured players pursuant to the Maine Workers' Compensation Act shall be paid
				by the insurer irrespective of other contractual obligations which the team may
				have to the players. In this case, the insurer shall maintain a right of
				subrogation against the team with respect to benefits which it has paid and
				which would otherwise be payable by the team to injured players pursuant to
				contractual obligations. The insurer shall employ a retrospective rating plan
				which reasonably reflects the insurer's ability to recover funds through
				subrogation.
F. An insurer need not
				adjust the workers' compensation insurance premium of any professional hockey
				team whose contractual obligations do not require it to provide salary
				continuation or medical benefits to players with respect to work related
				injuries.
G. A professional hockey
				team is not entitled to a workers' compensation insurance premium adjustment
				otherwise contemplated by this Rule for any time period when the contract or
				contracts offered in support of a premium adjustment are not in
				effect.
H. Nothing in this Rule
				requires an insurer to ascertain the solvency of any professional hockey team
				or its ability to meet any contractual obligation which the team may have to a
				player or players.