§431:14A-104  Company divisions.  (a) For purposes of providing representation on the board, the company shallconsist of industry divisions and a high risk division.  Assignments to eachdivision shall be made by the administrator with the approval of the board. The initial company divisions shall include:

(1)  Manufacturing and producers;

(2)  Services, entertainment, and amusement;

(3)  Professions;

(4)  Construction;

(5)  Wholesale and retail sales;

(6)  Transportation and public utilities;

(7)  Finance, insurance, and real estate; and

(8)  High risk.

(b)  An employer with two or more lost-timeclaims greater than $10,000, and a loss ratio greater than 1.0, over theimmediately preceding three years shall be placed in the high risk division.

(c)  The administrator, with the approval ofthe board, shall modify the requirements for placing employers in the high riskdivision if the qualifications result in the high risk division being limitedto only those employers with measurable adverse loss ratios, demonstratedaccident frequency records, or a demonstrated attitude of noncompliance withworkplace safety and health programs or claims management requirements.

(d)  The company shall give notice to eachemployer in the high risk division not less than thirty days prior to thepolicy renewal date requesting a report on the employer's lost-time claims forthe policy year.  The report shall be used to determine the employer'squalification for placement in the high risk division.

(e)  The company may apply a ratingdifferential and charge a surcharge to any employer placed in the high riskdivision.  The company may make multiple rate filings, consistent with soundactuarial judgment for each classification.  These rate filings may be appliedto risks in any division.

(f)  The contingent liabilities of membersprovided in section 431:4-317 may be separated so that members assigned to thehigh risk division have a further contingent liability for deficits in the highrisk division; provided that no contingent liability shall be in the aggregatefor more than five times the annual premium rate of the member's policy nor fora term of more than one year. [L 1996, c 261, pt of §2; am L 1997, c 300, §5]