Current through all regulations passed and filed through September 16, 2024
(A) Definitions.
As used in this rule:
(1) "Experience modification" or "EM" means
the experience modification as determined under rule
4123-17-03 of the Administrative
Code.
(2) "Eligibility
determination date" means the March first immediately preceding the policy year
for which the EM is being calculated for private employers, and the September
first immediately preceding the policy year for which the EM is being
calculated for public employer taxing districts.
(B) Except as provided
for in paragraph (D) of this rule, the bureau of
workers' compensation shall limit the increase in EM of an employer
meeting the eligibility requirements of this rule to
twenty-five per cent of
the initial EM calculated for that employer in the preceding rating year if the
employer is either individually experience rated or base rated in both the
current and preceding rating years for any policy years for private employers
beginning July 1, 2023 and ending June 30, 2027 or for any policy years for
public employer taxing districts beginning January 1, 2023 and ending December
31, 2027.
(C) Eligibility requirements.
As of the eligibility determination
date:
(1)
The employer must be current with respect to all
payments due the bureau, as defined in paragraph (A)(1)(b) of rule
4123-17-14 of the Administrative
Code;
(2)
The employer must not have cumulative lapses in
workers' compensation coverage in excess of forty days within the preceding
twelve months; and
(3)
The employer must report actual payroll for the
preceding policy year and pay any premium due upon reconciliation of estimated
premium and actual premium for that policy year no later than the eligibility
determination date.
(D) An employer removed from the EM cap
program for failure to meet the criteria set forth in paragraph (C)(3) of this
rule will be rerated for the full policy year at the employer's base rate or
experience-modified rate as determined by the employer's expected losses for
the policy year.
(E) Application of cap
to successor policies.
(1) Where a transfer
of experience occurs pursuant to rule
4123-17-02 of the Administrative
Code, the resulting EM is not subject to limitation under this rule unless one
of the following apply:
(a) The transfer is a
combination as a result of bankruptcy proceedings, when the transaction is a
change in policy number without any change in exposure; or
(b) A base-rated successor wholly or
partially succeeds a single policy.
(2) If the criteria in paragraph
(E)(1)(a) or (E)(1)(b) of
this rule are met, the predecessor's published EM in the preceding rating year
will be the EM published for the successor in the same rating year for purposes
of determining whether the cap applies under this rule.
