An Act To Reduce the Cost of Workers' Compensation Insurance for Small Employers
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §2381-C, sub-§8, as enacted by PL 1991, c. 885, Pt. B, §12 and affected by §13, is amended to read:
8. Rate. "Rate" means the cost of insurance per exposure base unit, prior to any application of individual risk variations based on loss or expense considerations , and does not include minimum premiums.
Sec. 2. 24-A MRSA §2381-C, sub-§12, as enacted by PL 1991, c. 885, Pt. B, §12 and affected by §13, is amended to read:
12. Supplementary rate information. "Supplementary rate information" means any manual or plan of rates, classification system, rating schedule, minimum premium, policy fee, rating rule, rating plan and any other similar information needed to determine the applicable premium for an insured.
Sec. 3. 24-A MRSA §2382-G is enacted to read:
§ 2382-G. Minimum premiums
A workers' compensation insurer may not charge a minimum premium in connection with a workers' compensation insurance policy.
summary
This bill prohibits a workers' compensation insurer from charging a minimum premium in connection with its issuance of a workers' compensation policy.