§ 24-A §2386 — Workers' compensation insurance residual market mechanism

Maine § 24-A §2386

• Jurisdiction: Maine
• Title 24-A: MAINE INSURANCE CODE
• Ch. 25: RATES AND RATING ORGANIZATIONS

Text

1.
Participation.
All insurers authorized to write workers' compensation and employers' liability insurance in this State shall participate in the workers' compensation insurance residual market mechanism, which is composed of an Accident Prevention Account and a Safety Pool. The residual market mechanism is not a state fund and the State has no proprietary interest in it or in any contributions made to it. This mechanism is exempt from any budgetary control or supervision by state agencies, except to the extent an insurance company is supervised or controlled by state agencies.
2.
Rules.
3.
Accident Prevention Account; eligibility.
Eligibility for insurance from the Accident Prevention Account is as follows.
4.
Safety Pool; eligibility.
Eligibility under the Safety Pool is as follows.
5.
Plan of operation.
The superintendent shall adopt rules pursuant to Title 5, chapter 375, subchapter II, establishing a plan of operation for the residual market mechanism.
5-A.
Immunity.
A member of the board of governors of the workers' compensation residual market pool created by Maine Insurance Rule Chapter 440 is immune from liability except for willful misconduct by the board member in the performance of the duties of a board member.
6.
Rates.
Rate filings for rates in the Accident Prevention Account and the Safety Pool must be made together and are subject to former section 2363.
7.
Mandatory deductible.
A deductible applies to all workers' compensation insurance policies issued to employers in the Accident Prevention Account that meet the following qualifications:
8.
Mandatory retrospective rating.
The superintendent may impose retrospective rating plans under the following circumstances:
9.
Credits for qualifying safety programs.
The superintendent shall adopt rules to establish dividend plans and premium credits between 5% and 15% of net annual premiums for policyholders that establish or maintain qualifying safety programs. The rules must identify the classifications by which policyholders are eligible for the credits and establish criteria for qualifying safety programs and procedures to be followed by servicing carriers in approving and auditing compliance with the safety programs. The superintendent may employ outside consultants to assist in the development of rules under this subsection, the costs of which must be paid by the Safety Education and Training Fund established under Title 26, section 61 to the extent that funds are available.
10.
Contracts; consultants.
11.
Report.
12.
Rules.
13.
Producer fees.
The servicing carrier in the residual market shall pay a fee to the producer designated by the employer on renewed policies upon payment of premium due. The fee must be 4% of the first $5,000 of renewal premium and 2.5% of renewal premium in excess of $5,000. The fee must be based on the state standard premium.
14.
Termination of residual market mechanism.
Workers' compensation and employers liability insurance coverage may not be issued through the workers' compensation insurance residual market mechanism on or after January 1, 1993.
15.
Loan.

Legislative History

PL 1991, c. 885, §B12 (NEW). PL 1991, c. 885, §B13 (AFF). PL 1993, c. 364, §§1,2 (AMD). PL 1995, c. 289, §§7-9 (AMD). PL 1995, c. 560, §G8 (AMD). PL 1995, c. 560, Pt. G, §8 (AMD).