Ala. Admin. Code r. 480-5-1-.07

Current through Register Vol. 43, No. 1, October 31, 2024

Section 480-5-1-.07 - Workers' Compensation Assigned Risk Plan

(1) Every insurer undertaking to transact in this state the business of either workers' compensation or employer's liability insurance or both, and every rating organization which files rates or prospective loss costs for such insurance shall cooperate in the preparation and submission to the State Insurance Commissioner of Alabama a plan for the equitable apportionment among insurers of applicants for insurance who are in good faith entitled to, but who are unable to procure through ordinary methods, such insurance. Such plan shall provide reasonable rules governing the equitable distribution of risks by direct assignment, reinsurance, or otherwise, and their assignment to insurers, and shall provide a method whereby applicants for insurance, insured, and insurers may have a hearing on grievances and the right of appeal to the State Insurance Commissioner of Alabama.

(2) Once such a plan has been approved, no insurer shall thereafter issue a policy of workers' compensation or employer's liability insurance or undertake to transact such business in this State unless such insurer shall participate in such plan.

Author: Randy Richie, Workers' Compensation Division

Ala. Admin. Code r. 480-5-1-.07

Emergency Rule effective November 25, 1992, Permanent Rule effective March 18, 1993.

Statutory Authority:Code of Ala. 1975, § 25-2-2(6).