Current through Register Vol. 63, No. 9, September 1, 2024
(1) Except for
revisions solely attributable to legislative enactments, changes in
administrative rules or orders, or approved by the Director to prevent an
impairment, or applying to state agencies, workers' compensation insurance
rates, rating plans, rating systems or provisions for claim payment are
unfairly discriminatory if either:
(a)
Revision of a rate, rating plan or rating system is filed to become effective
within six months of the effective date of a corresponding rate, rating plan or
rating system previously established pursuant to OAR
836-042-0015 by the filing
insurer; or
(b) The rating system
does not contain rules specifying that a revision of a rate, rating plan or
system shall not apply to an insured until an anniversary rating date at least
11 months and 16 days subsequent to the earlier of the preceding anniversary
rating date or the preceding policy effective date established for an insured
unless approved by the Director to apply to all policies in force on a common
date; or
(c) Premium rates are
based on provisions for claim payment filed by a licensed rating organization
which are not the provisions most recently approved or premium rates are
determined by multiplying superseded provisions by a factor; or
(d) Provisions for claim payment to be used
by an insurer as a basis for premium rates are revised to be effective on a
date other than the date of a revision approved for a licensed rating
organization.
(2)
Workers' compensation insurance rating plans or rating systems are presumed to
be unfairly discriminatory, unless demonstrated otherwise, if either:
(a) A rating plan or rating system which
produces only credit modifications to an insured's premiums is offered at the
option of the insurer;
(b) The
modification of the premium or premium rates applicable to an insured cannot be
quantitatively determined by the Commissioner except for the uncertainty of
estimated exposures; or
(c) An
insurer has filed two or more schedules of premium rates without providing a
clear rule for deciding which schedule is to be applied to an
insured.
(3) Premiums
are unfairly discriminatory if differentials between insureds fail to
reasonably reflect the differences in expected losses and expenses to the
insurer attributable to the insureds. Workers' compensation insurance rates,
rating plans or rating systems are not unfairly discriminatory when different
premiums result or different rates apply to insureds if:
(a) Differences in loss exposures, expense
factors or investment income opportunity to an insurer can be attributed to the
insureds; and
(b) The differences
are reasonably reflected by the rates, rating plan or rating system.
Stat. Auth.: ORS
731.244
Stats. Implemented: ORS
737.310
