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House Journal: Page 1380: Wednesday, April 8, 1998

38   surcharge shall not apply to any reinsurance or
39   retrocessional transaction under section 520.4 or
40   520.9.  In determining the surcharge for each
41   applicable fiscal year, the commissioner of insurance
42   shall provide that all insured and self-insured
43   employers be assessed for the outstanding liabilities
44   arising out of claims involving the second injury
45   compensation Act as determined pursuant to subsection
46   2.  The total assessment amount used in calculating
47   the surcharge for each applicable fiscal year shall be
48   allocated between self-insured employers and insured
49   employers, based on paid losses for the preceding
50   calendar year as provided in this subsection.  The

Page 6

 1   method of assessing self-insured employers shall be
 2   based on paid losses.  The method of assessing insured
 3   employers shall be a surcharge based on premium, as
 4   set forth in this subsection.  The portion of the
 5   total aggregate assessment that shall be collected
 6   from self-insured employers shall be equal to that
 7   proportion of total paid losses during the preceding
 8   calendar year, which the total compensation payments
 9   of all self-insured employers bore to the total
10   compensation payments made by all self-insured
11   employers and insurers on behalf of all insured
12   employers during the preceding calendar year.  The
13   portion of the total aggregate assessment that shall
14   be collected from insured employers shall be equal to
15   that proportion of total paid losses during the
16   preceding calendar year, which the total compensation
17   payments on behalf of all insured employers bore to
18   the total compensation payments made by all self-
19   insured employers and insurers on behalf of all
20   insured employers during the preceding calendar year.
21   Insurers shall collect assessments from insured
22   employers through a surcharge based on premium.  Such
23   assessments when collected shall not constitute an
24   element of loss for the purpose of establishing rates
25   for workers' compensation insurance but shall for the
26   purpose of collection be treated as separate costs by
27   insurers.  The surcharge is collectible by an insurer
28   and nonpayment of the surcharge shall be treated as
29   nonpayment of premium and the insurer shall retain all
30   cancellation rights inuring to it for nonpayment of
31   premium.  An insurance carrier, its agent, or a third-
32   party administrator shall not be entitled to any
33   portion of the surcharge as a fee or commission for
34   its collection.  The surcharge is not subject to any
35   taxes, licenses, or fees.  The surcharge is not deemed
36   to be an assessment or tax, but shall be deemed an
37   additional benefit paid for injuries compensable under

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Last update: Tue Apr 21 13:40:06 CDT 1998
URL: /DOCS/GA/77GA/Session.2/HJournal/01300/01380.html
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