Second Regular Session
              Sixty-ninth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 14-0393.01 Kristen Forrestal x4217HOUSE BILL 14-1091
                    HOUSE SPONSORSHIP
 Swalm, 
 
                   SENATE SPONSORSHIP
 Jahn, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Business, Labor, Economic, & Workforce Development
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the reporting of workers' compensation injury
            dollars in the experience modification factor of
            employers.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            The bill requires each workers' compensation insurance carrier to
       notify the authorized rating organization to revise the experience
       modification factor of an employer to reflect the actual dollar amount
       paid for a closed claim instead of the amount reserved prior to the closure
       of the claim and the amount recovered through subrogation of a claim.
       The bill requires the authorized rating organization to revise the
       experience modification factor to reflect the revised claims information.
       The carrier is required to credit the employer for the premium change as
       a result of the revised experience modification factor.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, add 8-44-109.5 as
       follows:
            8-44-109.5.  Request to revise experience modification factor
       - requirements of authorized rating organization - definition.
       (1)  Each insurance carrier authorized to transact business in
       this state, including Pinnacol Assurance, that insures an
       employer against liability for compensation under articles 40 to
       47 of this title shall notify the authorized rating organization
       to revise the employer's experience modification factor to
       reflect the actual dollar amount paid for a closed claim
       instead of the amount paid plus reserves prior to the closure of
       the claim and the amount recovered through subrogation of a
       claim. The notification must be received by the authorized
       rating organization within thirty days after the closure of the
       claim or the settlement of the subrogation claim. This section
       applies when either:
            (a) (I)  The claim closed at any time during the policy year;
       and
            (II)  The claim or claims closed for an amount less than
       the amount paid plus reserves; or
            (b)  The insurance carrier recovered moneys through
       subrogation of the claim at any time after the claim closed.
            (2)  The authorized rating organization shall revise the
       experience modification factor within thirty days after receipt
       of the information from the carrier required in subsection (1) of
       this section. The carrier shall credit the employer for the
       premium change as a result of the revised experience
       modification factor.
            (3)  As used in this section, "experience modification
       factor" means the adjustment of the annual premium paid by the
       employer based on the previous three years' loss experience.
            SECTION 2.  Effective date - applicability. This act takes effect
       July 1, 2014, and applies to all claims closed on or after said date.
            SECTION 3.  Safety clause. The general assembly hereby finds,
       determines, and declares that this act is necessary for the immediate
       preservation of the public peace, health, and safety.