23-1091. Assigned risk plan
A. An insurer may decline to issue a workers' compensation or occupational disease
policy to an employer. An employer who is refused coverage by the state compensation fund
and two or more other insurers shall be placed in the assigned risk plan established by
this section.
B. There shall be only one workers' compensation assigned risk plan in this state.
The director of the department of insurance shall contract with a qualified party to be
the assigned risk plan administrator.
C. The administrator may charge all insurers transacting workers' compensation
insurance in this state a reasonable fee to administer the assigned risk plan. Each
insurer shall pay a share of the fee based on the insurer's share of the preceding
calendar year's total net direct workers' compensation and occupational disease
compensation insurance premiums written in this state.
D. The assigned risk plan administrator shall develop a plan of operation and, on
approval by the director of the department of insurance, shall issue a directive for the
equitable apportioning of assigned risks among all the insurers, including the state
compensation fund. At any time, the director of the department of insurance may require
the assigned risk plan administrator to amend the plan of operation. The plan shall
include at least the following:
1. A method for the administrator to select one or more insurers transacting
workers' compensation insurance in this state to act as servicing carriers. An
administrator that is an insurer may act as its own servicing carrier. The administrator
shall monitor the performance of the servicing carriers and shall measure performance
against the administrator's established standards. A servicing carrier shall:
(a) Provide coverage for the risks placed in the assigned risk plan.
(b) Pay claims.
(c) Provide safety management services.
(d) Perform other activities that are related to the preliminary and subsequent
effectuation of the contract and that arise out of the contract, including paying
commissions to any licensed property and casualty agent or broker in this state.
2. A method for apportioning the workers' compensation assigned risks among all
insurers, including the state compensation fund.
E. Unless the director determines to use another method, the rates used to
determine the premiums of risks in the assigned risk plan are the rates annually filed
with the director of the department of insurance by the designated rating organization
pursuant to section 20-357, subsection B, unless the director requires the use of rates
from another rating organization, plus a uniform percentage increase that applies to all
classifications, that is determined by the designated rating organization or, if the
director directs, another rating organization and that is subject to approval by the
director. The expected loss rates, ballast factors and other factors for use with the
uniform experience rating plan as described in title 20, chapter 2, article 4 and filed
with the director also apply to experience rated risks in the assigned risk plan.
F. Rating classifications used in the assigned risk plan shall conform to the
uniform classification plan. Subclassifications and rating rule deviations shall not be
used in the assigned risk plan.
G. All insurers participating in workers' compensation or occupational disease
compensation insurance shall participate in the assigned risk plan.
H. Distribution of assignments among insurers shall be made in proportion to each
insurer's share of the preceding calendar year's total net direct workers' compensation
and occupational disease compensation insurance premium written in this state, as far as
practicable.
I. An insurer that refuses to participate in the assigned risk plan shall not be
authorized to write workers' compensation coverage in this state. If an insurer refuses
to participate in the assigned risk plan after being authorized to write workers'
compensation coverage in this state, the insurer's authorization shall be revoked. If an
insurer withdraws from or is terminated from writing workers' compensation coverage in
this state, the insurer remains responsible for all injuries sustained during the period
of coverage stated in the policies of that insurer.
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