Section 902.3 - Calculation of workers' compensation premiums - Equalization of expected losses and expenses between high and low wage-paying employers - Agency rule reportA. Workers' compensation premiums shall be calculated on a basis that, as nearly as is practicable, after the effects of experience rating and other applicable rating plans have been considered, the sum of expected losses and expected expenses as a percentage of premium shall be the same for high- and low-wage-paying employers in the same job classification.B. The Insurance Commissioner and the Board of Directors of CompSource Mutual Insurance Company shall: 1. Determine the extent to which high-wage-paying employers are paying premiums higher than those which would produce the same ratio of expected losses and expenses to premiums as for employers paying lower wages;2. Determine whether this effect is primarily seen in certain types of job classifications;3. Investigate alternatives and modifications to the current method of computing workers' compensation premiums, including wage rate recognition plans used in other states, split classifications, wage rate caps, and hours worked;4. Conduct a hearing or hearings on this matter, including consideration of other alternatives; and5. Adopt rules by January 1, 1996, to become effective on July 1, 1996, unless disapproved by the Legislature, to equalize, as nearly as is practicable, expected losses and expenses as a percentage of workers' compensation premiums for high- and low-wage-paying employers in the same job classification. If the effect is found to be primarily seen in certain types of job classifications, the rules shall be adopted to apply only to such types of job classifications. The adopted rules shall be subject to legislative review and shall be promulgated as permanent rules pursuant to the Administrative Procedures Act. The agency rule report required by the Administrative Procedures Act shall include a rule impact statement together with an actuarial analysis of the proposed rule describing in detail the classes of persons who most likely will be affected by the proposed rules; the classes of persons who will benefit from the adopted rules; and the probable economic impact of the proposed rules upon the affected classes of persons. The actuarial analysis shall be prepared by an independent actuary who is a member of the Casualty Actuarial Society or the American Academy of Actuaries who is qualified as described in the U.S. Qualifications Standards promulgated by the American Academy of Actuaries pursuant to the Code of Professional Conduct to perform such actuarial analysis selected by the Insurance Commissioner. The rules shall not be invalidated on the ground that the contents of the rule impact statement or the actuarial analysis are insufficient or inaccurate. C. The cost of the premium adjustment plan shall be allocated among all employers purchasing workers' compensation insurance from all carriers.Okla. Stat. tit. 36, § 902.3
Amended by Laws 2013 , c. 254, s. 15, eff. 1/1/2015.Added by Laws 1994, 2nd Extr. Sess., HB 1002, c. 1, § 3, eff. 11/4/1994; Amended by Laws 2006 , HB 2905, c. 264, §16, emerg. eff. 7/1/2006.