Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 42 - RATES AND RATEMAKING › Section 836-042-0210 - Rating Plans for Which Employers May be Combined; Retrospective Rating Deposit Required; When Group Rating May be Applied

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An insurer may use the combined
			 experience of a group of employers for experience rating, retrospective rating,
			 or premium discounting of workers' compensation insurance premiums for the
			 employers in the group. An insurer may also apply other factors approved by the
			 Insurance Commissioner which are not adequately reflected in experience rating,
			 retrospective rating, or premium discounting and which satisfy the requirements
			 of section (6) of this rule.
(2) If
			 the combined experience of a group of employers is used for experience rating,
			 a modification factor to supplement the modification factors of individual
			 employers shall be calculated and distributed by a licensed rating organization
			 according to the Experience Rating Plan of the National Council on Compensation
			 Insurance filed with the Insurance Commissioner. Limitations or other data
			 adjustments shall be applied only to the experience data of individual group
			 members. The rating organization shall provide such service to an insurer upon
			 request and may charge a reasonable fee.
(3) The premiums of a group of employers may
			 be combined for premium discounting if the group can reasonably justify the
			 combination by showing savings in acquisition, premium collection, policy
			 issuance or other insurance administrative expenses or insurance services
			 provided by an organization of which employers in the group are
			 members.
(4) The premiums of a
			 group of employers may be combined for retrospective rating either to enhance
			 volume and reduce insurance charges or to realize expense savings as would be
			 allowed for premium discounting.
(5) Rating modifications based on the
			 combined experience of a group of employers shall apply to individual members
			 of the group as of the individual member's first anniversary rating date on or
			 after the group anniversary rating date.
(6) An insurer may file a group rating plan
			 for applying factors not adequately recognized and reflected by experience
			 rating, retrospective rating, or premium discounting. The effective date of a
			 proposed plan shall be the date specified in the filing, but not sooner than 30
			 days after the filing is received by the Insurance Commissioner. The
			 Commissioner may approve an earlier effective date not preceding the date the
			 filing was received. If, within the 30-day period, the Commissioner finds the
			 proposal does not meet the standards and requirements of ORS Chapter 737 and
			 this section, the Commissioner shall notify the insurer that the proposal has
			 been disapproved, stating the basis for such action, and the proposal shall not
			 become effective. If, following the 30-day period, the commissioner finds the
			 proposal does not satisfy the requirements and standards of ORS Chapter 737,
			 the commissioner may proceed according to ORS
			 737.336(2),
			 737.215, and
			 737.045 to disapprove the plan.
			 The Commissioner shall not approve a plan for applying rating factors unless:
(a) All factors can be objectively evaluated
			 and are consistently and uniformly applied and evidence thereof maintained by
			 the insurer;
(b) Premium
			 modifications for each factor are supported by actuarial evidence;
(c) The insurer captures and maintains
			 statistical data demonstrating the rating equity of applying premium
			 modifications; and
(d) The
			 application of a rating factor does not inappropriately duplicate the
			 recognition of experience used in other rating factors.