Sec. 1. 24-A MRSA §2385-B, as amended by PL 2001, c. 176, §1, is further amended to read:

§2385-B. Disclosure of premium information

All policies issued to employers for workers' compensation insurance must disclose clearly to the employer as separate figures the base rate and, the employer's experience modification factor, the basis for scheduled rating of the employer and other incentive adjustments to the premium.

Upon request from an employer, when a policy is issued to an employer for workers' compensation insurance, it must be accompanied by a statement disclosing the percentages of premium expended during the previous year by the insurer for claims paid, loss control and other administrative costs, medical provider expenses, insurer and employee attorney's fees and private investigation costs and the status and justification for subrogation decisions made by the insurer during the previous year.

SUMMARY

This bill requires that workers' compensation insurers disclose to employers the basis for scheduled rating and other incentive adjustments to their premiums. It also requires that, upon request when a policy is issued, companies provide employers with information regarding the status and justification of subrogation decisions during the previous year.