Bill Text: HI HB1828 | 2010 | Regular Session | Introduced
Bill Title: Workers' Compensation; Insurance Ratemaking
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [HB1828 Detail]
Download: Hawaii-2010-HB1828-Introduced.html
Report Title:
Workers' Compensation; Insurance Ratemaking
Description:
Requires workers' compensation insurers to use rates that are proportional to the number of employees.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1828 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to workers' compensation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that workers' compensation insurers use different rate methodologies for employers with a small number of employees and employers with a large number of employees, which result in higher rates for employers with a small number of employees. Specifically, insurers use a flat rate for employers with a small number of employees but do not use a flat rate for employers with a large number of employees.
The purpose of this Act is to require that rates shall be made proportional to the number of employees.
SECTION 2. Section 431:14-103, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) In cases of workers' compensation insurance, all rates made in accordance with this section shall be given due consideration for good safety records of employers. By premium reductions, dividends, or both, insurance carriers shall recognize good safety performance records of employers in this State. Furthermore, all rates made in accordance with this section shall be proportional to the number of employees employed by the insured employer."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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