09
LC 37 0831
Senate
Bill 76
By:
Senator Hudgens of the 47th
AS PASSED
AN
ACT
To
amend Chapter 9 of Title 34 of the Official Code of Georgia Annotated, relating
to workers' compensation, so as to repeal Code Section 34-9-135; to amend
Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to
regulation of insurance rates, so as to remove certain references; to provide
for related matters; to repeal conflicting laws; and for other
purposes.
SECTION
1.
Chapter
9 of Title 34 of the Official Code of Georgia Annotated, relating to workers'
compensation, is amended by revising Code Section 34-9-135, relating to
disclosure of costs by insurer, as follows:
"34-9-135.
Reserved."
SECTION
2.
Chapter
9 of Title 33 of the Official Code of Georgia Annotated, relating to regulation
of insurance rates, is amended by revising paragraph (2) of subsection (a) in
Code Section 33-9-21, relating to maintenance and filing of insurance rates,
rating plans, rating systems, or underwriting rules and examination of claim
reserve practices by the Commissioner of Insurance, as follows:
"(2)
Shall require, not later than July 30, 1990, each domestic, foreign, and alien
insurer, writing or authorized to write workers' compensation insurance in this
state, to file such insurer's own individual rate filing for premium rates to be
charged for workers' compensation insurance coverage written in this state.
Such premium rates shall be developed and established based upon each individual
insurer's experience in the State of Georgia to the extent actuarially credible.
The experience filed shall include the loss ratios, reserves, reserve
development information, expenses, including commissions paid and dividends
paid, investment income, pure premium data adjusted for loss development and
loss trending, profits, and all other data and information used by that insurer
in formulating its workers' compensation premium rates which are used in this
state and any other information or data required by the Commissioner. In
establishing and maintaining loss reserves, no workers' compensation insurer
shall be allowed to maintain any excess loss reserve for any claim or potential
claim for more than 90 days after the amount of liability for such claim or
potential claim has been established, whether by final judgment, by settlement
agreement, or otherwise. This limitation on the maintenance of loss reserves
shall be enforced through this Code section, as well as through Code Section
33-9-23, relating to examination of insurers, and any other appropriate
enforcement procedures. The Commissioner is authorized to accept such rate
classifications as are reasonable and necessary for compliance with this
chapter. A rate filing required by this paragraph shall be updated by the
insurer at least once every two years, the initial two-year period to be
calculated from July 30, 1990; and"
SECTION
3.
Said
chapter is further amended by revising subsection (b) of Code Section 33-9-40.1,
relating to rates of workers' compensation policies issued to business entities
with majority interest held by the same person, limitations on maintenance of
reserves, and investigations of complaints, as follows:
"(b)
For experience rating purposes, no workers' compensation insurer shall maintain
any case reserve for any claim in excess of the amount established by final
judgment, by settlement, or otherwise. All reductions in case reserves shall be
made and reported to the appropriate rating organization within 90 days. Any
further adjustments upward in the case reserve shall only be made due to
additional paid claims or a case reserve established on a claim which was
previously closed but reopened due to a claimant's request for additional
benefits. This limitation on the maintenance of reserves shall be enforced
through this Code section, as well as through Code Section 33-9-21, relating to
rate filings, Code Section 33-9-23, relating to examination of insurers, and any
other appropriate enforcement procedures."
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.