Sec.31-349g-5. Calculation of assessments

(a) Self-Insured Employers

(1) The pro rata share of Budget obligations attributable to Self-Insured Employers shall be collected through an assessment on all Self-Insured Employers, based on Paid Losses for the preceding calendar year, at a rate and schedule to be determined by the Custodian of the Fund prior to the commencement of the fiscal year.

(2) In the event the Custodian of the Fund determines there is a material change in the Budget, the Custodian of the Fund may revise the rate and schedule of assessments on Self-Insured Employers as necessary to satisfy the pro rata share of Budget obligations attributable to Self-Insured Employers.

(b) Insured Employers

(1) The pro rata share of Budget obligations attributable to Insured Employers shall be collected through an identifiable Premium Surcharge on all workers' compensation and employers liability insurance policies with an effective date on or after July 1, 1996. On or before May 1, 1996 and on or before May 1 annually thereafter, the Custodian of the Fund shall determine and publish the Premium Surcharge Rate for policies with an effective date during the next Fiscal Year. Such Premium Surcharge Rate shall be based upon the Custodian of the Fund's projection of total Standard Premium for such Fiscal Year. Every Insurer shall provide to the Custodian of the Fund such information as the Custodian of the Fund may request in order to make such projection. The Premium Surcharge Rate shall be sufficient to generate revenue needed to satisfy the pro rata share of Budget obligations attributable to Insured Employers.

(2) The Custodian of the Fund may determine and publish a different Premium Surcharge Rate, including an interim Premium Surcharge Rate, based upon information received from the insurance commissioner, for policies of employers in the assigned risk pool which recognizes the assigned risk rate differential approved by the insurance commissioner.

(3) In the event that the Custodian of the Fund determines there is a material change in the Budget, the Custodian of the Fund may revise the Premium Surcharge Rate as necessary to satisfy the pro rata share of Budget obligations attributable to Insured Employers. The Custodian of the Fund shall determine and publish the revised Premium Surcharge Rate to be effective for policies with an effective date on or after the 60th day after such publication.

(c) Insured Employers That Become Self-InsuredAny Insured Employer that becomes a Self-Insured Employer shall be assessed based upon Paid Losses paid by it or on its behalf by its former Insurer or any other party during the preceding calendar year.

(Adopted effective January 5, 1996)