Sec. 1. 24-A MRSA §2382-D, sub-§2, as enacted by PL 1991, c. 885, Pt. B, §12 and affected by §13, is amended to read:

2. Experience rating. The uniform experience rating plan must be the exclusive means for providing premium adjustments based on the past claim experience of an insured employer. The experience rating plan must provide that the claims experience for the 3 most recent years for which data is available be considered on the following bases.

A. The claims and exposure for the most recent year for which data is available must be given 40% weight, except that if there are no claims for that year the claims and exposure must be given 100% weight and the claims and exposure for the 2nd and 3rd most recent years must be given no weight.

B. The claims and exposure for the 2nd most recent year for which data is available must be given 35% weight except as provided in paragraph A.

C. The claims and exposure for the 3rd most recent year for which data is available must be given 25% weight except as provided in paragraph A.

If Except as provided in paragraph A, if data is available for only 2 years of experience, the weighting must be 60% for the most recent year and 40% for the 2nd most recent year.

SUMMARY

This bill requires that employers with no claims history for the prior year be given credit for the lack of claims experience in determining the premium for workers' compensation insurance.