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statutes are repealed and the following is substituted in lieu thereof 2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