Chapter 235 Oregon Laws 1999
Session Law
AN ACT
SB 280
Relating to workers'
compensation rating organizations; amending ORS 737.017, 737.225, 737.265,
737.270, 737.355 and 737.560; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 737.355 is amended to read:
737.355. (1) If the Director of the Department of Consumer and
Business Services finds that the applicant represents a credible statistical
base, is competent, trustworthy and otherwise qualified to act as a rating
organization and that its constitution, articles of agreement or association or
certificate of incorporation, and its bylaws, rules and regulations governing
the conduct of its business conform to the requirements of law, the director
shall issue a license specifying the classes of insurance, or subdivision or
class of risk or a part or combination thereof for which the applicant is
authorized to act as a rating organization. Each application shall be granted
or denied in whole or in part by the director within 60 days of the date of its
filing with the director.
(2) The director need
not issue a license to each workers' compensation rating organization that
meets the qualifications and requirements of subsection (1) of this section.
Instead, the director may issue licenses to one or more qualifying workers'
compensation rating organizations pursuant to a selection process established
by rule. At the end of the period for which one or more licenses are issued,
the director may do the following pursuant to the selection process established
by rule under this subsection:
(a) Renew a license or issue
a license to another workers' compensation rating organization; and
(b) Renew or issue licenses
to more than one workers' compensation rating organization.
[(2)] (3) [Licenses] A license
issued pursuant to this section shall remain in effect for three years unless
suspended or revoked by the director [sooner].
The license fee shall be as established by the director. [Licenses] A license
issued pursuant to this section may be suspended or revoked by the director,
after a hearing upon notice, in the
event the rating organization ceases to meet the requirements of this section. If a license is issued to only one
workers' compensation rating organization and the license is suspended or
revoked, the director may issue a license to another workers' compensation
rating organization for the remainder of the period for which the suspended or
revoked license was issued.
[(3)] (4) [Every] Each rating
organization shall notify the director promptly of every change regarding
matters listed in ORS 737.350 (1), (2) and (3).
(5) As a condition of
receiving and holding its license, a workers' compensation rating organization
must exchange data with other licensed workers' compensation rating
organizations pursuant to rules adopted by the director that may include
establishing fees for the exchange of data.
SECTION 2.
ORS 737.225 is amended to read:
737.225. (1) [Every] Each insurer, rating organization or
advisory organization shall maintain reasonable records, of the type and kind
reasonably adapted to its method of operation, of its experience or the
experience of its members and of the data, statistics or information collected
or used by it in connection with the rates, rating plans, rating systems,
underwriting rules, policy or bond forms, surveys or inspections made or used
by it. An insurer providing workers' compensation insurance shall maintain
reasonable records showing investment income earned by the insurer, insurer
profit on workers' compensation insurance, accumulated reserves for vocational
rehabilitation services and accumulated reserves for claim costs related to
orders or awards made pursuant to ORS 656.278.
(2) The maintenance of such records in the office of a licensed
rating organization of which an insurer is a member or subscriber will be
sufficient compliance with this section for any insurer maintaining membership
or subscribership in such organization, to the extent that the insurer uses the
rates, rating plans, rating systems or underwriting rules of such organization.
(3) Such records shall be available to the Director of the
Department of Consumer and Business Services for examination and inspection at
any time in order to determine whether the filings made pursuant to ORS 737.205
comply with this chapter.
(4) Each insurer shall maintain statistics under statistical
plans compatible with the rating plans used
by the insurer. An insurer may report its statistics through a recognized
agency or advisory organization, except that workers' compensation insurance
statistics shall be reported to the workers' compensation rating organization
of which the insurer is a member. The director shall prescribe by rule the
statistical plan for workers' compensation insurance.
(5)(a) The director
shall designate one workers' compensation statistical agency from the licensed
rating organizations as the agent to which all licensed workers' compensation
rating organizations shall report workers' compensation insurance statistics.
The director shall adopt rules to ensure a competitive process in the
designation of the one workers' compensation statistical agency.
(b) The designated workers'
compensation statistical agency shall assist the director in gathering workers'
compensation insurance statistics and making compilations of those statistics
and shall make the compilations available to insurers and other licensed
workers' compensation rating organizations, subject to rules adopted by the
director.
(c) If the director licenses
only one workers' compensation rating organization under section 1 (2) of this
1999 Act, that rating organization shall be the designated statistical agent
under this subsection.
(6) The ownership of the
financial and statistical data submitted to a workers' compensation statistical
agency is vested in the submitting member insurer. The financial and
statistical data shall be confidential and may not be disclosed, provided that
the ownership rights of an insurer shall not limit access by the director for
the purposes of performing the regulatory duties of the Department of Consumer
and Business Services.
SECTION 3.
ORS 737.265 is amended to read:
737.265. (1) Members and subscribers of rating or advisory
organizations may use the rates, rating systems, underwriting rules or policy
or bond forms of such organizations, either consistently or intermittently,
but, except as provided in ORS 737.275, 737.312, 737.365, 737.390, 737.526 and
subsection (2) of this section, shall not agree with each other or rating
organizations or others to adhere thereto. The fact that two or more authorized
insurers, whether or not members or subscribers of a rating or advisory
organization, use, either consistently or intermittently, the rates or rating
systems made or adopted by a rating organization, or the underwriting rules or
policy or bond forms prepared by a rating or advisory organization, shall not
be sufficient in itself to support a finding that an agreement to so adhere
exists, and may be used only for the purpose of supplementing or explaining any
competent evidence of the existence of any such agreement.
(2) [All insurers
required by ORS 737.560 (2) to be members of a] Each insurer transacting workers' compensation [rating organization] insurance shall adhere to the policy
forms filed by the licensed workers'
compensation rating organization of
which the insurer is a member and approved by the Director of the Department of
Consumer and Business Services.
SECTION 4.
ORS 737.270 is amended to read:
737.270. (1) When a worker leasing company required to be
licensed by ORS 656.850 provides workers to work for a client and also provides
the workers' compensation coverage for those workers, the insurance premium for
the client's exposure shall be based on the client's own experience rating, in
the same manner as required for employers insuring directly employed workers.
(2) An insurer that provides workers' compensation to a worker
leasing company shall maintain and report to [a] the licensed workers' compensation rating
organization of which the insurer is a
member separate statistical experience for each client of the worker
leasing company according to the uniform statistical plan prescribed by the
Director of the Department of Consumer and Business Services according to ORS
737.225 (4).
(3) To reimburse expenses incurred by the insurer in
segregating client experience, the insurer shall be permitted to charge the
worker leasing company a reasonable fee as determined by the director.
(4) The worker leasing company shall earn a separate experience
rating for any administrative personnel the company employs.
SECTION 5.
ORS 737.560 is amended to read:
737.560. (1) Except as provided in subsection (2) of this
section, nothing contained in this chapter shall be construed as requiring any
insurer to become a member of or a subscriber to any rating organization.
(2) [Every] Each workers' compensation insurer,
including the State Accident Insurance Fund Corporation, shall be a member of a
licensed workers' compensation
rating organization. [The State Accident
Insurance Fund Corporation is entitled without election to membership on any
committee thereof established in connection with the operation of the rating
organization in this state.]
SECTION 6.
ORS 737.017 is amended to read:
737.017. As used in this chapter, unless the context requires
otherwise:
(1) "Member" means:
(a) An insurer [who] that participates in or is entitled to participate in the
management of a rating, advisory or other organization[.]; or
(b) For purposes of workers'
compensation insurance, an insurer that is affiliated or associated with a
rating, advisory or other organization by agreement with the organization for
the purpose of obtaining the rates and rating manuals or the services offered
by the organization.
(2) "Subscriber" means an insurer [which] that is furnished at its request:
(a) With rates and rating manuals by a rating organization of
which it is not a member; or
(b) With advisory services by an advisory organization of which
it is not a member.
SECTION 7. This 1999 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 1999 Act takes effect on its passage.
Approved by the Governor
June 9, 1999
Filed in the office of
Secretary of State June 9, 1999
Effective date June 9, 1999
__________