Conn. Agencies Regs. § 31-349g-1

Current through October 16, 2024

Section 31-349g-1 - Definitions

As used in sections 31-349g-1 through 31-349g-9, inclusive:

(1) "Budget" means projected fiscal year revenues and expenses of the Fund as established pursuant to Section 31-349g-2 of the Regulations of Connecticut State Agencies.

(2) "Custodian of the Fund" means the Treasurer of the State of Connecticut.

(3) "Fiscal Year" means the fiscal year of the State of Connecticut which commences on July 1 and ends on the following June 30.

(4) "Fund" means the Second Injury Fund established and described in chapter 568, part E of the General Statutes.

(5) "Insured Employer" means an employer that satisfies its workers' compensation obligation by purchasing a workers' compensation and employers liability insurance policy. "Insured Employer" includes members of Interlocal Risk Management Agencies, as defined in sections 7-479a through 7-479i of the general statutes and employer's mutual insurance associations as defined in sections 31-328 through 31-339 of the general statutes.

(6) "Insurer" means stock and mutual companies authorized to provide workers' compensation and employers liability insurance in accordance with applicable laws of this state. "Insurer" includes Interlocal Risk Management Agencies as defined in sections 7-479a through 7-479i of the general statutes and employer's mutual insurance associations as defined in sections 31-328 through 31-339 of the general statutes.

(7) "Paid Losses" for Insurers means statutory paid losses as reported on page 14, line 16 of the statutory annual statement filed with the insurance commissioner; plus any loss payments within deductible limits on workers' compensation policies; plus any other third party recoveries; less Fund assessments included on page 16, line 16 of the statutory annual statement; less any amount included in direct losses paid but not covered by the Connecticut Workers' Compensation Act, such as payments under the United States Longshore and Harbor Workers' Compensation Act and employers liability coverage under the workers' compensation and employers liability policy. For Self-Insured Employers, "paid losses" means the total indemnity and medical expenses paid in accordance with the Connecticut Workers' Compensation Act.

(8) "Premium Surcharge" means an amount payable by each Insured Employer to satisfy its obligation to the Fund. The premium surcharge shall be equal to the Premium Surcharge Rate multiplied by the Insured Employers' Standard Premium.

(9) "Premium Surcharge Rate" means a factor established by the Custodian of the Fund, which shall be applied to an Insured Employer's workers' compensation policy Standard Premium to determine its Premium Surcharge. The term "Premium Surcharge Rate" includes any such factor established pursuant to subdivision 2 of subsection (b) of section 31-349g-5 of the regulations of Connecticut State Agencies.

(10) "Self-Insured Employer" means any employer to whom a certificate of self-insurance has been issued pursuant to Section 31-284 of the General Statutes.

(11) "Standard Premium" means the direct written premium determined for each workers' compensation and employers liability insurance policy on the basis of authorized rates, including expense provisions and applicable rate deviations or average prospective premium credit, applicable experience rating modification and minimum premium. Such direct written premium will be determined without regard to when or whether the premium on the policy is paid. Standard Premium does not include the following items which are considered in calculating the total cost of coverage:

(a) Expense constant,

(b) Premium discount,

(c) Modification of individual risk expense provision,

(d) Retrospective rating adjustments,

(e) Assigned Risk Adjustment Program (ARAP) surcharge,

(f) Second Injury Fund Premium Surcharge,

(g) Workers' Compensation Commission Funds surcharge,

(h) Deductible program credit, and (i) United States Longshore and Harbor Workers' Compensation Act coverages. Direct written premium excludes premium assumed or ceded in a reinsurance transaction. Nothing in the definition of standard premium shall prohibit an insurer from excluding written premium not collectable due to policy cancellation.

Conn. Agencies Regs. § 31-349g-1

Adopted effective January 5, 1996