Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 67.00 - Workers' Compensation Self-insurance Groups
Section 67.09 - Uniform Classification System; Premium Contributions; Application to Make Own Rates; Audits

(1) Every group shall comply with the uniform classification system, uniform experience rating plan, including the All Risk Adjustment Program (ARAP), other experience rating plans the Commissioner may approve, and manual rules filed with the Commissioner by an advisory organization designated by the Commissioner.

(2) Experience modifications for members shall be calculated, at the expense of the group, by an organization designated by the Commissioner, and shall be used by all groups. Members changing from one group to another, or returning to the insured workers' compensation market shall carry their experience modifications with them. The Commissioner shall develop a plan and schedule for implementing 211 CMR 67.09(2). Any self-insurance group which is composed of more than 1,000 members and has been in existence for a period of five consecutive years as of December 31, 1999 and which remains in compliance with the net worth requirements of both 211 CMR 67.08(2)(c) and 67.10 shall not be required to have its members experience rated pursuant to the uniform experience rating plan filed with and approved by the Commissioner.

(3) Premium contributions to a group shall be determined by applying the manual rates and rules to the appropriate classification of each member and adjusting the premium by each member's experience credit or debit. Subject to approval by the Commissioner, premium contributions may also be reduced by an advance premium discount reflecting the group's expense levels and loss experience.

(4) A group may apply to the Commissioner for authority to make its own rates. Such rates shall be filed with the Commissioner and shall be based upon at least two fund years, consisting of not less than 24 months, of the group's experience, to the extent actuarially credible. A public employer safety group in operation for at least two consecutive years before it applies for approval to operate as a public employer group, may apply to the Commissioner to make its own rates immediately. In no event shall a group determine members' premium contributions by any method other than that prescribed herein without the prior written approval of the Commissioner. In no event shall a group make a distribution to its members, other than dividends, without the prior written approval of the Commissioner.

(5) Each group shall be audited at least annually by an independent auditor, selected and compensated by the group, and subject to the approval of the Commissioner, to verify proper classifications, experience rating, payroll and rates. A report of the audit shall be filed with the Commissioner on or before the last day of the sixth month following the end of the group's fund year in a form acceptable to him or her. The group or any member may request a hearing on any objections to the classifications. If the audit shows that, as a result of an improper classification, a member's premium contribution is insufficient, the group shall assess that member an amount equal to the deficiency. If the audit shows that as a result of an improper classification a member's premium contribution is excessive, the group shall refund to the member the excess collected.