§431:14A-104  Company divisions.  (a) 
For purposes of providing representation on the board, the company shall
consist of industry divisions and a high risk division.  Assignments to each
division 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-time
claims greater than $10,000, and a loss ratio greater than 1.0, over the
immediately preceding three years shall be placed in the high risk division.



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



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



(e)  The company may apply a rating
differential and charge a surcharge to any employer placed in the high risk
division.  The company may make multiple rate filings, consistent with sound
actuarial judgment for each classification.  These rate filings may be applied
to risks in any division.



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