AI-assisted research summary: This section defines “small employer” and requires workers’ compensation insurers to give qualifying small employers a one-time premium discount, while certain employers with multiple injury claims must be surcharged.
(a) For purposes of this article, “small employer” means an employer who is not experienced-rated for workers’ compensation insurance purposes and whose annual workers’ compensation premium is less than $5,000.00. (b) The Department of Insurance shall promulgate a plan by which all insurance companies writing workers’ compensation insurance in this state shall grant a one-time discount to small employers who qualify under this article and by which surcharges are assessed against small employers who experience two or more employee on-the-job injuries resulting in payment of indemnity or medical payments during a one-year period. (c) A small employer who has not experienced an employee on-the-job injury resulting in payment of indemnity or medical payments during the most recent one-year period for which statistics are available shall receive a one-time discount of 10 percent on the amount of the employer’s workers’ compensation insurance premium. (d) A small employer who has not experienced an employee on-the-job injury resulting in payment of indemnity or medical payments during the most recent two-year period for which statistics are available shall receive a one-time discount of 15 percent on the amount of the employer’s workers’ compensation insurance premium. (e) A small employer who has experienced one employee on-the-job injury resulting in payment of indemnity or medical payments during the most recent one-year period for which statistics are available is not eligible for a discount on the amount of the employer’s workers’ compensation insurance premium, as otherwise would be available under subsections (c) or (d) of this section. (f) A small employer who has experienced two or more employee on-the-job injuries resulting in payment of indemnity or medical payments during the most recent one-year period for which statistics are available shall be assessed a surcharge of 10 percent on the amount of the employer’s workers’ compensation premium; provided, however, no surcharge shall be assessed unless the small employer has received a discount, under subsections (c) or (d) of this section for the previous policy year. (g) The discounts and surcharges under this article are not cumulative. For any annual workers’ compensation premium, a small employer may not receive a discount of more than 15 percent, and a small employer may not be required to pay a surcharge of more than 10 percent. (h) Within 30 days after one year following May 19, 1992, the Insurance Commissioner shall make a report to the Governor, with copies to the Lieutenant Governor and the Speaker of the House of Representatives on the Premium Incentives for Small Employers Program. This report shall include, but not be limited to, the number of employers participating in this program, the numbers and amounts of discounts and surcharges and any recommendations regarding this program.