Ohio Administrative Code › Title 4123 - Bureau of Workers' Compensation › Chapter 4123-17 - General Rating for the State Insurance Fund › Section 4123-17-51 - Termination and transfers

Current through all regulations passed and filed through July 1, 2024
(A) A risk may not retroactively include
			 claims experience in a plan, exclude claims experience from a plan nor
			 voluntarily terminate a plan during the evaluation period.
(B) Successor: retrospective-rated
			 predecessor: experience-rated, base-rated,
			 noncomplying or self-insured
Where one legal entity that has established coverage and is a
				retrospective-rated employer wholly succeeds one or more legal entities having
				established coverage and the predecessor entities are either experience-rated,
				base-rated, non-complying or self-insured at the date of succession, the costs
				incurred and payroll reported by the predecessor from the date of succession to
				the end of the policy year, shall be included in the successor's retrospective
				rating plan. The successor remains liable for any and all charges associated
				with the predecessor. If the predecessor had at any time participated in a
				retrospective policy plan, the successor remains liable for any and all charges
				associated with the retrospective policy plans. The adjustment for combinations
				in the experience rating system will follow the same rules that are in effect
				as of the date of succession.
(C) Successor: self-insured
			 predecessor: retrospective-rated
Where one legal entity that has established coverage and is a
				self-insured employer wholly succeeds one or more entities that are
				retrospective-rated, the retrospectiverated predecessor's plan(s) shall
				terminate as of the ending date of the evaluation period. Payroll reported and
				claims incurred on or after the date of succession will be the responsibility
				of the successor. The successor shall remain responsible for all liabilities of
				the predecessor, including but not limited to costs associated with any
				retrospective policy years still in the evaluation period. The minimum premium
				for the current policy year will be based on the predecessor's annualized
				payroll.
(D) Successor:
			 experience-rated or base-rated predecessor: retrospective-rated
Where one legal entity that has established coverage and is an
				experience-rated or based-rated employer wholly succeeds one or more entities
				that are retrospectiverated, the retrospective-rated predecessor's plan(s)
				shall terminate as of the ending date of the evaluation period. Payroll
				reported and claims incurred on or after the date of succession will be the
				responsibility of the successor under its experience rated plan. The successor
				shall remain responsible for all liabilities of the predecessor, including but
				not limited to costs associated with any retrospective policy years still in
				the evaluation period. The minimum premium for the current policy year will be
				based on
				the predecessor's annualized payroll.
(E) Successor: retrospective-rated
			 predecessor: retrospective-rated
If the successor and the predecessor are retrospective-rated
				employers for the current policy year, the successor shall be
				retrospective-rated based on the combined experience of the predecessor and the
				successor. The successor remains liable for any and all retrospective-rated
				premiums or other charges associated with the predecessor. The adjustment for
				combinations in the experience rating system will follow the same rules that
				are in effect as of the date of succession.
(F) Successor: entity not having coverage
			 predecessor: retrospective-rated
When an entity not having coverage wholly succeeds a
				retrospective-rated entity, the experience of the predecessor shall be
				transferred to the successor-employer effective as of the actual date of
				succession. The successor remains liable for any and all open
				retrospective-rated premium or other charges associated with the predecessor.
				The successor entity will become retrospective-rated as of the date of
				succession until the end of the policy year, with the same plan parameters
				chosen by the predecessor risk. The adjustment for combinations in the
				experience rating system will follow the same rules that are in effect as of
				the date of succession.
(G)
			 Successor: cancels coverage predecessor: no predecessor
If a current or previously retrospective-rated employer cancels
				coverage and does not transfer or combine operations with another entity, all
				open retrospective policy years will be terminated as of the date of
				cancellation. If the employer was retrospectiverated during the two most recent
				rating years, the final premium for each of those years will be the maximum
				premium for the plan selected by the employer. The maximum premium for the
				current year will be based on the employer's annualized payroll. If the employer
				was retrospective-rated in other years of the evaluation period, the final
				premium for each of those years will be calculated as stated in rule
				4123-17-47 of
				the Administrative Code.
(H) Successor: files a petition for
			 bankruptcy predecessor: no predecessor
If a current or previously retrospective-rated employer with
				open policy year(s) files a petition for bankruptcy under chapter 7 or chapter
				11 of the Federal Bankruptcy Law, that employer shall notify the
				bureau's law section by certified mail within five
				working days from the date of the bankruptcy filing. The bureau will petition
				the bankruptcy court to take appropriate action to protect the health of the
				state insurance fund and other related funds.
(I) Successor and/or predecessor: open
			 retrospective-rated policy years in the evaluation period.
If the successor and predecessor employers are not currently
				retrospective-rated but either or both have open retrospective-rated policy
				years in the evaluation period, the successor shall be liable for any and all
				retrospective-rated premiums or other charges associated with the predecessor.
				The adjustment for combinations in the experience rating system will follow the
				same rules that are currently being used.
(J) Partial transfer
If an entity partially succeeds another entity and the
				predecessor entity has any retrospective policy years in the evaluation period,
				the predecessor entity remains liable for all premium associated with claims
				incurred prior to the date of the partial transfer. If the financial capability
				of the predecessor entity is not sufficient to cover the costs of the
				retrospective rating plan, the successor shall be liable for all unpaid costs
				of the predecessor's retrospective rating plan through closure. If the
				successor is retrospective-rated in the current policy year and the effective
				date of the partial transfer is other than the beginning of the rating year,
				the successor will continue to be rated in the same manner as prior to the
				transfer. The successor will be liable for any payroll and/or claims incurred
				from that part of the predecessor entity which was transferred, beginning on
				the date of the transfer. If the successor has retrospective policy years in
				the evaluation period, the successor remains liable for all charges associated
				with retrospective rating plan(s), whether or not the successor is
				retrospective rated as of the effective date of the partial transfer. The
				adjustment for partial transfers in the experience rating system will follow
				the same rules that are in effect as of the date of succession.
(K) Transfer or sale of assets
			 only
In the case of the transfer or sale of assets without transfer
				of liability or stock, the transferor who is now retrospective-rated or has
				been retrospective-rated with policy year(s) still in the evaluation period
				shall notify the bureau's actuarial section
				by certified mail within five working days of the date of transfer. The bureau
				shall schedule and hold a hearing within sixty days of such notification, or in
				the event of no notification, within sixty days of receiving information which
				indicates such a transfer may have occurred. At this hearing the bureau shall
				determine and set responsibility for funding the as yet unpaid costs associated
				with the retrospective policy year(s) still in the evaluation period.