Connecticut 2025 Regular Session

Connecticut House Bill HB07046 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 5085 1 of 3
	3	+	LCO No. 5085 1 of 4
4	4
5	5		General Assembly Raised Bill No. 7046
6	6		January Session, 2025
7	7		LCO No. 5085
8	8
9	9
10		-	Referred to Committee on LABOR AND PUBLIC
11		-	EMPLOYEES
	10	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
12	11
13	12
14	13		Introduced by:
15	14		(LAB)
	15	+
16	16
17	17
18	18
19	19		AN ACT MAKING REVISIONS TO THE SECOND INJURY FUND.
20	20		Be it enacted by the Senate and House of Representatives in General
21	21		Assembly convened:
22	22
23	23		Section 1. Subsections (a) and (b) of section 31-349g of the general 1
24	24		statutes are repealed and the following is substituted in lieu thereof 2
25	25		(Effective from passage): 3
26	26		(a) For purposes of this section: 4
27	27		(1) "Insured employer" means an employer who insures its risks 5
28	28		incurred under this chapter with an insurance company authorized to 6
29	29		issue workers' compensation policies in this state by the Insurance 7
30	30		Department, and includes any member of a workers' compensation pool 8
31	31		administered by an interlocal risk management agency, and on and after 9
32	32		January 1, 2005, an employer mutual association organized prior to June 10
33	33		6, 1996, with a membership composed exclusively of health care 11
34	34		providers and whose premium base is derived entirely from health care 12
35	35		organizations. 13
36		-	(2) "Self-insured employer" means an employer who is approved to 14 Raised Bill No. 7046
	36	+	(2) "Self-insured employer" means an employer who is approved to 14
	37	+	self-insure its liabilities under this chapter by the chairperson of the 15
	38	+	Raised Bill No. 7046
37	39
38	40
39		-	LCO 5085 2 of 3
40	41
41		-	self-insure its liabilities under this chapter by the chairperson of the 15
	42	+	LCO No. 5085 2 of 4
	43	+
42	44		Workers' Compensation Commission. For the period commencing 16
43	45		October 1, 2004, and ending December 31, 2004, "self-insured employer" 17
44	46		includes an employer mutual association organized prior to June 6, 18
45	47		1996, with a membership composed exclusively of health care providers 19
46	48		and whose premium base is derived entirely from health care 20
47	49		organizations. 21
48	50		(3) "Paid losses" means the total indemnity, medical and any other 22
49	51		expenses, prior to any credits or deductions being taken, paid on or after 23
50	52		January 1, 2006, by or on behalf of an employer to or on behalf of an 24
51	53		injured employee. Paid losses includes all legal expenses paid for the 25
52	54		benefit of an injured worker in accordance with this chapter and any 26
53	55		loss payments within deductible limits on workers' compensation 27
54	56		policies. 28
55	57		(4) "Second Injury Fund surcharge base" means direct written 29
56	58		premium on policies prior to application of any deductible policy 30
57	59		premium credits. 31
58	60		(5) "Direct written premium" includes all endorsements, 32
59	61		retrospective adjustments, audits and minimum premium and shall be 33
60	62		determined without regard to when or whether the premium on the 34
61	63		policy is paid. 35
62	64		(6) "Second Injury Fund surcharge" for insurance companies, 36
63	65		interlocal risk management agencies and self-insurance groups means 37
64	66		the rate set by the custodian multiplied by the Second Injury Fund 38
65	67		surcharge base. 39
66	68		(7) "Self-insurance group" means a not-for-profit association 40
67	69		consisting of fifteen or more employers who are engaged in the same or 41
68	70		similar type of business, who are members of the same bona fide trade 42
69	71		or professional association which has been in existence for not less than 43
70	72		five years, and who enter into agreements to pool their liabilities for 44
71		-	workers' compensation benefits and employers' liability. 45 Raised Bill No. 7046
	73	+	workers' compensation benefits and employers' liability. 45
	74	+	Raised Bill No. 7046
72	75
73	76
74		-	LCO 5085 3 of 3
	77	+
	78	+	LCO No. 5085 3 of 4
75	79
76	80		(8) "Tortfeasor" means a third party that was liable in tort for an injury 46
77	81		to an employee. 47
78	82		(b) The State Treasurer, in consultation with the Insurance 48
79	83		Commissioner, may adopt regulations, in accordance with the 49
80	84		provisions of chapter 54, regarding the method of assessing all 50
81	85		employers for the liabilities of the Second Injury Fund. The liabilities 51
82	86		shall be allocated between self-insured employers and insured 52
83	87		employers based on a percentage of paid losses for the preceding 53
84	88		calendar year for each group. No credits shall be taken against paid 54
85	89		losses, except voided checks in connection with expenses paid under 55
86	90		this chapter previously reported as a paid loss, actual recoveries from 56
87	91		[third party] tortfeasors, reimbursement granted pursuant to section 31-57
88	92		299b and Second Injury Fund reimbursements. The method of 58
89	93		assessment for self-insured employers shall be based on paid losses. The 59
90	94		method of assessment for insured employers, for policies with effective 60
91	95		dates before July 1, 2006, shall be based on the standard premium, and 61
92	96		for policies with effective dates on or after July 1, 2006, shall be based on 62
93	97		the Second Injury Fund surcharge base. In adopting regulations under 63
94	98		this section, the State Treasurer shall consider their effect upon (1) the 64
95	99		cost of doing business in this state, (2) the overall cost of the workers' 65
96	100		compensation system, (3) the effect of the regulations on insurers, 66
97	101		insureds and self-insured employers, and (4) the financial condition and 67
98	102		liabilities of the fund. 68
99	103		This act shall take effect as follows and shall amend the following
100	104		sections:
101	105
102	106		Section 1 from passage 31-349g(a) and (b)
103	107
104		-	LAB Joint Favorable
	108	+	Statement of Purpose:
	109	+	To clarify that self-insured employers and insured employers can
	110	+	deduct third-party recoveries only from a tortfeasor.
	111	+
	112	+	Raised Bill No. 7046
	113	+
	114	+
	115	+
	116	+	LCO No. 5085 4 of 4
	117	+
	118	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	119	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	120	+	underlined.]
105	121