HB 106 - Workers' compensation; voluntary service for ACOG; coverage
Georgia House of Representatives - 1995/1996 Sessions
HB 106 - Workers' compensation; voluntary service for ACOG; coverage
Page Numbers - 1/ 2/ 3/ 4/ 5
1. Lane 146th 2. Coleman 142nd 3. Buck 135th
4. Parrish 144th 5. Channell 111th 6. Godbee 145th
House Comm: IndR / Senate Comm: I&L /
House Vote: Yeas 116 Nays 4 Senate Vote: Yeas 50 Nays 0
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House Action Senate
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1/9/95 Read 1st Time 2/1/95
1/10/95 Read 2nd Time 2/10/95
1/26/95 Favorably Reported 2/9/95*
Sub Committee Amend/Sub
Recommitted 1/8/96
1/31/95 Read 3rd Time 1/8/96
1/31/95 Passed/Adopted 3/12/96
CS Comm/Floor Amend/Sub CS
3/14/96 Amend/Sub Agreed To
4/2/96 Sent to Governor
4/15/96 Signed by Governor
907 Act/Veto Number
4/15/96 Effective Date
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Rules Suspended to Introduce
Favorably Reported by Substitute 3/7/96
Code Sections amended: 34-9-138, 34-9-152, 34-9-155, 34-9-156, 34-9-163,
34-9-164, 34-9-167, 33-23-102
HB 106 HB 106/AP
H. B. No. 106 (AS PASSED HOUSE AND SENATE)
By: Representatives Lane of the 146th, Coleman of the
142nd, Buck of the 135th, Parrish of the 144th, Channell of
the 111th and others
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 9 of Title 34 of the Official Code of
1- 2 Georgia Annotated, relating to workers' compensation, so as
1- 3 to provide for inclusion of a formerly self-insured
1- 4 employer's prior experience in determining an experience
1- 5 modifier; to change certain provisions relating to
1- 6 application for certificate of authority to create group
1- 7 self-insurance fund; to change certain provisions relating
1- 8 to admission of new members to group self-insurance fund; to
1- 9 change certain provisions relating to termination of
1-10 participation in group self-insurance fund; to change
1-11 certain provisions relating to maintenance of loss reserves;
1-12 to change certain provisions relating to payment of
1-13 operating expenses by members of fund; to change certain
1-14 provisions relating to bond of administrator; to amend Code
1-15 Section 33-23-102 of the Official Code of Georgia Annotated,
1-16 relating to bond and surety of applicant for insurance
1-17 administrator's license, so as to provide for fidelity bond;
1-18 to provide an effective date; to repeal conflicting laws;
1-19 and for other purposes.
1-20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1-21 Chapter 9 of Title 34 of the Official Code of Georgia
1-22 Annotated, relating to workers' compensation, is amended by
1-23 adding a new Code Section 34-9-138 to read as follows:
1-24 "34-9-138. (Index)
1-25 Any insurance company which voluntarily writes a policy
1-26 for any employer which was self-insured under any
1-27 provision of this chapter shall include such employer's
1-28 prior experience while self-insured to determine or have
1-29 determined an experience modifier for such employer."
SECTION 2.
1-30 Said chapter is further amended by striking subsection (d)
1-31 of Code Section 34-9-152, relating to application for
H. B. No. 106
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HB 106/AP
2- 1 certificate of authority to create group self-insurance
2- 2 fund, and inserting in lieu thereof the following:
2- 3 "(d) Each application for a certificate of authority shall
2- 4 be accompanied by a filing fee of $300.00 in the amount
2- 5 required by subparagraph (CC) of paragraph (1) of Code
2- 6 Section 33-8-1, which fee shall not be refundable."
SECTION 3.
2- 7 Said chapter is further amended by striking subsection (a)
2- 8 of Code Section 34-9-155, relating to admission of new
2- 9 members to group self-insurance fund, and inserting in lieu
2-10 thereof the following:
2-11 "(a) Any other provision of law to the contrary
2-12 notwithstanding, no No person other than a trustee,
2-13 officer, or administrator of the fund shall solicit
2-14 membership or participation in any fund unless such
2-15 person:
2-16 (1) Has a valid agent's license for property and
2-17 casualty insurance or a counselor's license issued
2-18 pursuant to Article 1 of Chapter 23 of Title 33; or
2-19 (2) Is an officer, director, or employee of:
2-20 (A) A professional association or trade association;
2-21 or
2-22 (B) A corporation with its income exempt pursuant to
2-23 Section 115 of the United States Internal Revenue
2-24 Code."
SECTION 4.
2-25 Said chapter is further amended by striking subsection (d)
2-26 of Code Section 34-9-156, relating to termination of
2-27 participation in group self-insurance fund, and inserting in
2-28 lieu thereof the following:
2-29 "(d) Any member who is voluntarily terminated or is
2-30 involuntarily terminated shall carry the same experience
2-31 modifier promulgated by the fund unless proof can be
2-32 provided to the Commissioner that either the formula for
2-33 determining the experience modifier is incorrect or the
2-34 data being used is incorrect be provided with the data
2-35 necessary for the replacement workers' compensation
2-36 insurer to determine or have determined an experience
2-37 modifier for such former member."
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HB 106/AP
SECTION 5.
3- 1 Said chapter is further amended by striking subsection (b)
3- 2 of Code Section 34-9-163, relating to maintenance of loss
3- 3 reserves, and inserting in lieu thereof the following:
3- 4 "(b) For all claims under policies written in the three
3- 5 years immediately preceding the date as of which the
3- 6 statement is made, a fund shall maintain:
3- 7 (1) Actual loss reserves, incurred but not reported loss
3- 8 reserves, and reserves for aggregate excess insurance
3- 9 which, combined with actual loss and loss expense
3-10 payments, shall be in an amount at least equal to the
3-11 loss fund percentage as stated in the fund's excess
3-12 insurance policy or such higher amounts as required by
3-13 the Commissioner; or
3-14 (2) With the approval of the Commissioner, loss reserves
3-15 in an amount equal to the greater of the amount
3-16 established by an independent casualty actuary in
3-17 accordance with actuarial standards or 40 45 percent of
3-18 earned premiums written in each of the three years prior
3-19 to the date on which the report or statement is to be
3-20 made, less all loss and loss expense payments made in
3-21 connection with the claims under policies written in
3-22 those three years. For the purposes of this paragraph,
3-23 the term 'actuarial standards' means the standards
3-24 adopted by the Casualty Actuarial Society in its
3-25 Statement of Principles Regarding Property and Casualty
3-26 Insurance Ratemaking Loss and Loss Adjustment Expense
3-27 Reserves and the Standards of Practice adopted by the
3-28 Actuarial Standards Board."
SECTION 6.
3-29 Said chapter is further amended by striking subsection (a)
3-30 of Code Section 34-9-164, relating to payment of operating
3-31 expenses by members of fund, and inserting in lieu thereof
3-32 the following:
3-33 "(a) Each member shall pay into the fund its share of the
3-34 fund's projected obligation for workers' compensation
3-35 liability, administrative expenses, and other costs
3-36 incurred by the fund as may be determined by the board of
3-37 the fund or by an the fund's administrator and approved by
3-38 the board of the fund, all in accordance with this
3-39 article. The share shall be adjusted by the board of the
3-40 fund according to the claims experience of each
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HB 106/AP
4- 1 participating member in accordance with criteria set forth
4- 2 in the bylaws of the fund; provided, however, that no
4- 3 member of a fund shall be charged a basic rate which is in
4- 4 excess of 108 percent of the basic rate charged to any
4- 5 other member of the fund. The premium for each year shall
4- 6 be paid by each member at the beginning of each fund year
4- 7 unless otherwise provided for under the intrastate
4- 8 agreement or under a payment plan developed by the board
4- 9 of the fund and submitted to and approved by the
4-10 Commissioner. The board of the fund shall make payments to
4-11 the employees of the members out of the fund for workers'
4-12 compensation benefits pursuant to and in accordance with
4-13 the claims procedures set forth in this chapter; and the
4-14 board of the fund shall determine what, if any, dividends
4-15 or assessments shall be paid to or levied against the
4-16 participating members of the fund."
SECTION 7.
4-17 Said chapter is further amended by striking subsection (a)
4-18 of Code Section 34-9-167, relating to bond of administrator,
4-19 and inserting in lieu thereof the following:
4-20 "(a) The Commissioner shall require each administrator to
4-21 have and maintain a fidelity bond in an amount which the
4-22 Commissioner deems appropriate but which is not less than
4-23 $100,000.00 pursuant to Code Section 33-23-102."
SECTION 8.
4-24 Code Section 33-23-102 of the Official Code of Georgia
4-25 Annotated, relating to bond and surety of applicant for
4-26 insurance administrator's license, is amended by striking
4-27 subsection (a) and inserting in lieu thereof the following;
4-28 "(a) Every applicant for an administrator's license shall
4-29 file with the application and shall thereafter maintain in
4-30 force while so licensed a fidelity bond in favor of the
4-31 Commissioner executed by a corporate surety insurer
4-32 authorized to transact insurance in this state. The terms
4-33 and type of the bond, including, but not limited to, total
4-34 aggregate liability on the bond shall be established by
4-35 the rule or regulation of the Commissioner."
SECTION 9.
4-36 This Act shall become effective upon its approval by the
4-37 Governor or upon its becoming law without such approval.
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HB 106/AP
SECTION 10.
5- 1 All laws and parts of laws in conflict with this Act are
5- 2 repealed.
H. B. No. 106
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Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97