Pure premium rate, schedule of rates, filed with director, when
A group that sets insurance rates must share those rates and any changes with the state director within 30 days. For construction businesses, the group must collect two years of payroll data and give it to the state so the state can build a fair formula for setting insurance costs. That formula was locked in on January 1, 1999. Construction employers can also submit payroll records from any one quarter of the prior year to get a price discount on their workers' compensation insurance.
287.975. , of rates, filed with , when — , to collect data, when, purpose — construction group, to advisory organization. — 1. The advisory organization shall file with the director every pure premium rate, every manual of rating rules, every and every change or amendment, or of any of the foregoing, proposed for use in this state no more than thirty days after it is to members, or others.
2. The advisory organization which makes a for use in setting rates in this state shall collect data for two years after January 1, 1994, on the payroll differential between employers within the , including, but not limited to, costs of the employer and number of hours worked by all employees of the employer engaged in construction work. Such data shall be transferred to the of commerce and insurance in a form prescribed by the , and the department shall compile the data and develop a formula to equalize rates for employers within the construction group of code classifications based on such payroll differential within three years after the data is submitted by the advisory organization.
3. The formula to equalize premium rates for employers within the construction group of code classifications established under 2 of this section shall be the formula in effect on January 1, 1999. This subsection shall become effective on January 1, 2014.
4. For the purposes of calculating the under the , an employer within the construction group of code classifications may submit to the advisory organization the required payroll for the first, second, third, or fourth of the year prior to the beginning or renewal date, provided that the employer clearly indicates for which quarter the payroll information is being submitted.
Tap any gold-underlined word to see what it means.
Source & history notes
(L. 1993 S.B. 251 § 35, A.L. 2013 H.B. 404 & 614, A.L. 2016 S.B. 613 merged with S.B. 700)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.