Ohio Administrative Code › Title 4123 - Bureau of Workers' Compensation › Chapter 4123-17 - General Rating for the State Insurance Fund › Section 4123-17-73 - Group retrospective rating program

Current through all regulations passed and filed through July 1, 2024
(A)
			 Definitions.
As used in this rule:
(1) "Group retrospective rating" is a
			 voluntary workers' compensation insurance program offered by the bureau. Group
			 retrospective rating is designed to provide financial incentive to employer
			 groups participating in the program that, through improvements in workplace
			 safety and injured worker outcomes, are able to keep their claim costs below a
			 predefined level.
(2) "Basic
			 premium factor" is a component of the retrospective rating premium formula used
			 to account for insurance charges and costs that are distributed across all
			 employers. The basic premium factor (BPF) is based upon charges for the cost of
			 having retrospective premium limited by the selected maximum premium ratio, the
			 cost of claims when they exceed the per claim maximum value and the cost of
			 excluding surplus costs from incurred losses.
(3) "Developed losses" or "total incurred
			 losses (developed)" are a component of the retrospective rating premium formula
			 intended to account for the fact that total incurred losses in claims are
			 likely to increase over time. This claim cost development results from a number
			 of factors, including, but not limited to, reactivation of claims, additional
			 claim awards, and claims that may be incurred but not reported for a
			 substantial period, and result in costs that would otherwise not be covered by
			 premium collected.
(4) "Evaluation
			 period" means the three-year period beginning immediately after the end of the
			 retro policy year. Annual evaluations will occur three times during the
			 evaluation period at twelve, twenty-four, and thirty-six months after the end
			 of the retro policy year.
(5)
			 "Incurred losses" means compensation payments and medical payments paid to date
			 as well as open case reserves. The total incurred losses will not include
			 surplus costs or costs as defined in paragraphs (G)(4) or (G)(5) of rule
			 4123-17-03 of the Administrative
			 Code and will be limited on a per claim basis.
(6) "Loss development factor" means
			 actuarially determined factors that are multiplied by incurred losses of
			 non-PTD/death retro claims to produce developed losses. Loss development
			 factors (LDF) are unique to each retro policy year.
(7) "Maximum premium ratio" means a factor
			 pre-selected by the retro group that is multiplied by the standard premium
			 after application of the premium size factors to determine the maximum
			 retrospective premium for the group.
(8) "Member of a retro group" means the
			 individual employers that participate in a group retrospective rating plan of a
			 sponsoring organization.
(9)
			 "Reserve" means the bureau's estimate of the future cost of a claim at a
			 specific point in time.
(10) "Retro
			 policy year" means the policy year in which an employer is enrolled in group
			 retrospective rating. Claim losses which occur during this year will be tracked
			 for all retro group members and refunds or assessments will be distributed
			 based on those losses in the subsequent evaluation period. The retro policy
			 year start and end date will match that of the rating policy year. For public
			 employer taxing districts, the retro policy year shall be January first through
			 December thirty-first of a year. For private employers, the retro policy year
			 shall be July first through June thirtieth of the following year.
(11) "Standard premium" means the total
			 premium paid by or on behalf of an employer for a given policy year including
			 any premium size factor adjustment, excluding the 
									assessment for the disabled workers' relief fund
			 . In
			 determining standard premium, total premium paid will not be reduced by any
			 rebates or dividends issued pursuant to rule
			 4123-17-10 of the Administrative
			 Code.
(12) "Application deadline"
			 means the application deadline for group retrospective rating as set forth in
			 appendix A and in appendix B to rule
			 4123-17-74 of the Administrative
			 Code.