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H0148...........................................................by BUSINESS
WORKER'S COMPENSATION - Adds to existing law to allow any insurer issuing
worker's compensation insurance contracts to include, as part of the
contract, an option which allows the policyholder to reimburse the insurer
for certain claims paid by the insurer, and such reimbursed claims shall
not be reported to a rating organization for the purpose of determining the
policyholder's experience rating.
02/02 House intro - 1st rdg - to printing
02/03 Rpt prt - to Com/HuRes
02/12 Rpt out - rec d/p - to 2nd rdg
02/15 2nd rdg - to 3rd rdg
02/17 3rd rdg - PASSED - 66-0-3
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Hadley,
Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones,
Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, Loertscher,
Mader, Marley, McKague, Meyer, Mortensen, Moyle, Pischner, Pomeroy,
Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smith,
Stevenson, Stoicheff, Stone, Taylor(Taylor), Tilman, Tippets, Trail,
Watson, Wheeler, Williams, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Gould, Linford, Montgomery,
Dist. 15, Seat A, Vacant
Floor Sponsor - Black
Title apvd - to Senate
02/18 Senate intro - 1st rdg - to Com/HuRes
03/17 Rpt out - rec d/p - to 2nd rdg
03/18 2nd rdg - to 3rd rdg
Rules susp - PASSED - 23-0-12
AYES--Andreason, Branch, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Dunklin, Geddes, Hawkins, Ipsen, King,
Lee, McLaughlin, Richardson, Risch, Schroeder, Sorensen, Stegner,
Stennett, Wheeler
NAYS--None
Absent and excused--Boatright, Deide, Frasure, Ingram, Keough, Noh,
Parry, Riggs, Sandy, Thorne, Twiggs, Whitworth
Floor Sponsor - King
Title apvd - to House
03/19 To enrol - rpt enrol - Sp signed - Pres signed
03/23 To Governor
03/24 Governor signed
Session Law Chapter 278
Effective: 07/01/99
H0148|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 148 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO WORKER'S COMPENSATION RATES; AMENDING CHAPTER 16, TITLE 41, IDAHO 3 CODE, BY THE ADDITION OF A NEW SECTION 41-1626, IDAHO CODE, TO PROVIDE 4 THAT AN INSURER ISSUING A WORKER'S COMPENSATION INSURANCE CONTRACT MAY 5 INCLUDE AS PART OF THE CONTRACT A COMPENSATION REIMBURSEMENT OPTION TO THE 6 POLICYHOLDER, AND TO PROVIDE CONDITIONS AND PROCEDURES TO EXERCISE SUCH 7 OPTION. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Chapter 16, Title 41, Idaho Code, be, and the same is 10 hereby amended by the addition thereto of a NEW SECTION , to be 11 known and designated as Section 41-1626, Idaho Code, and to read as follows: 12 41-1626. COMPENSATION REIMBURSEMENT OPTION. Notwithstanding any other 13 provision of this code, an insurer issuing a worker's compensation insurance 14 contract may include as part of the contract an option allowing a policyholder 15 at the policyholder's sole discretion, to reimburse the insurer for compensa- 16 tion in amounts not to exceed one thousand dollars ($1,000) per claim, subject 17 to the following conditions: 18 (1) Claimant's rights shall be properly protected, and claimant's bene- 19 fits have been paid by the insurer. 20 (2) The insurer shall pay all benefits of a compensable claim to the per- 21 son or provider entitled to benefits regardless of the policyholder's option 22 to reimburse the insurer for the claim. Payment of benefits shall not be 23 delayed due to the decision of a policyholder to reimburse the insurer for the 24 claim. 25 (3) The making of such reimbursement does not constitute a waiver or 26 transfer of the insurer's duty to determine entitlement to benefits. 27 (4) In the event the insurer recovers any medical costs on a claim reim- 28 bursed pursuant to this section, the insurer shall repay the policyholder 29 within thirty (30) days an amount equal to recovered medical costs. 30 (5) The claim to which a reimbursement by the policyholder applies may 31 not exceed one thousand dollars ($1,000) over the life of the claim. Should a 32 claim exceed the one thousand dollar ($1,000) limit after a portion has been 33 reimbursed by the policyholder, the insurer shall within thirty (30) days 34 notify the policyholder and return the reimbursement and adjust all reports 35 accordingly. 36 (6) The policyholder shall make all reports of accidents, injuries and 37 losses to the insurer as required under the provisions of title 72, Idaho 38 Code, regardless of the policyholder's intent to reimburse the insurer. 39 (7) The insurer shall record and report all losses for the purpose of 40 setting industry rates. 41 (8) Claims reimbursed pursuant to this section shall not be reported to a 42 rating organization for the purpose of determining the policyholder's experi- 43 ence rating, nor shall the insurer otherwise increase a policyholder's experi- 2 1 ence rating or otherwise make charges against the policyholder for any compen- 2 sation reimbursed by the policyholder pursuant to this section. 3 (9) No reduction in current premium may be granted as a result of a reim- 4 bursed claim. 5 (10) Nothing in this section shall apply to worker's compensation insur- 6 ance contracts offering the policyholder a deductible pursuant to the provi- 7 sions of title 72, Idaho Code. 8 (11) If the insurer offers the reimbursement option and the policyholder 9 elects to exercise such option, the procedure for reimbursement shall be as 10 follows: 11 (a) Within thirty (30) days following each three (3) month period after 12 policy inception or a period mutually agreed upon by the policyholder and 13 the insurer, the insurer shall provide the policyholder with a list of all 14 accepted nondisabling claims for which payments were made during that 15 period and the respective cost of each claim. 16 (b) No later than thirty (30) days after receipt of the list, the policy- 17 holder shall identify the claims and the dollar amount the policyholder 18 elects to reimburse for that period, and the policyholder shall reimburse 19 the insurer accordingly. 20 (c) Failure by the policyholder to reimburse the insurer within the 21 thirty (30) days allowed shall be deemed notice to the insurer that the 22 policyholder has not elected to make any reimbursement for that period.
STATEMENT OF PURPOSE
RS08738
This legislation will provide insured employers greater control
over their premium costs for workers compensation coverage. It
will reduce the experience modification of employers who have
small claims, but will insure the integrity of the claims
reporting and rating systems. Employees will continue to receive
all benefits. The legislation provides an incentive to report
small claims which, at present, may not be reported due to an
insured's concern that reporting increases premiums.
FISCAL NOTE
This legislation does not have any fiscal impact on general fund
moneys.
Contact: Rep. Max Black (208) 375-2635 or (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H l48