HB114.html

Article 9 of Chapter 9 of Title 34 of the Official Code of Georgia Annotated, relating to the Subsequent Injury Trust Fund, is amended by striking Code Section 34_9_358, relating to payment of assessments to the fund by insurers and self_insurers, and inserting in lieu thereof the following:
"34_9_358.
~~Each insurer and self_insurer~~ Insurers and self_insurers under this chapter shall, under regulations prescribed by the board of trustees, make payments to the fund ~~in an amount~~ that in total equal ~~to that proportion of~~ 175 percent of the total disbursement made from the fund during the preceding calendar year less the amount of the net assets in the fund as of December 31 of the preceding calendar year which the total workers´ compensation claims paid by the insurer or self_insurer bears to the total workers´ compensation claims paid by all insurers and self_insurers during the preceding calendar year. The total of such assessments shall be allocated to insurers and self_insurers, respectively, according to the proportion of total benefits paid during the preceding calendar year by insurers and self_insurers, respectively. Insurers shall collect such assessments from their policyholders through a surcharge based on written premium in the next calendar year following the fund´s fiscal year end. Such premium surcharge shall be excluded from the definition of premium except for purposes of premium tax; provided, however, that an insurer may cancel any workers´ compensation policy for nonpayment of such premium surcharge. Such premium surcharge shall not constitute an element of loss for the purpose of establishing rates for workers´ compensation insurance but shall be treated as a separate cost by the insurer for purposes of collection. The administrator is authorized to reduce or suspend assessments for the fund when a completed actuarial survey shows further assessments are not needed. An employer who has ceased to be a self_insurer prior to the end of the calendar year shall be liable to the fund for the assessment of the calendar year. The initial assessment of each insurer or self_insurer for the purpose of generating revenue to begin operation of the fund shall be in the amount of one_half of 1 percent of the workers´ compensation premiums collected by the insurer for the preceding calendar years from an employer who is subject to this chapter or the equivalent of such in the case of a self_insurer."