Indiana 2024 Regular Session

Indiana House Bill HB1159 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1159
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 22-5-10; IC 27-7-2.
7	7	Synopsis: Worker's compensation. Provides that a bid specification
8	8	that is entered into, issued, amended, or renewed after June 30, 2024,
9	9	may not contain a provision requiring an employer to have or maintain
10	10	a specified experience rating. Requires certain insurance companies
11	11	that make a successful subrogation claim to revise an insured party's
12	12	prior experience ratings in a specified manner. Provides exceptions.
13	13	Defines terms and makes a conforming amendment.
14	14	Effective: July 1, 2024.
15	15	Lehman
16	16	January 8, 2024, read first time and referred to Committee on Employment, Labor and
17	17	Pensions.
18	18	2024 IN 1159—LS 6694/DI 141 Introduced
19	19	Second Regular Session of the 123rd General Assembly (2024)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2023 Regular Session of the General Assembly.
29	29	HOUSE BILL No. 1159
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning labor
31	31	and safety.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 22-5-10 IS ADDED TO THE INDIANA CODE AS
34	34	2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
35	35	3 1, 2024]:
36	36	4 Chapter 10. Required Experience Ratings
37	37	5 Sec. 1. As used in this chapter, "employer" means a sole
38	38	6 proprietor, corporation, partnership, limited liability company, or
39	39	7 other entity with one (1) or more employees.
40	40	8 Sec. 2. As used in this chapter, "experience rating" has the
41	41	9 meaning set forth in IC 27-7-2-2(m).
42	42	10 Sec. 3. A bid specification that is:
43	43	11 (1) entered into;
44	44	12 (2) issued;
45	45	13 (3) amended; or
46	46	14 (4) renewed;
47	47	15 after June 30, 2024, may not contain a provision requiring an
48	48	16 employer to have or maintain a specified experience rating.
49	49	17 Sec. 4. This chapter does not prohibit a party from considering
50	50	2024 IN 1159—LS 6694/DI 141 2
51	51	1 an employer's experience rating when awarding a contract.
52	52	2 SECTION 2. IC 27-7-2-2 IS AMENDED TO READ AS FOLLOWS
53	53	3 [EFFECTIVE JULY 1, 2024]: Sec. 2. As used in this chapter and
54	54	4 unless a different meaning appears from the context:
55	55	5 (a) "Department" means the department of insurance of this state.
56	56	6 (b) "Worker's compensation board" means the worker's
57	57	7 compensation board of Indiana.
58	58	8 (c) "Company" means an insurance company and includes all
59	59	9 persons, partnerships, corporations, or associations engaged in making
60	60	10 worker's compensation insurance under the laws of this state.
61	61	11 (d) "Domestic company" means a company organized under the
62	62	12 laws of this state.
63	63	13 (e) "Foreign company" means a company organized under the laws
64	64	14 of any state of the United States, other than this state or under the laws
65	65	15 of any territory or insular possession of the United States or the District
66	66	16 of Columbia.
67	67	17 (f) "Alien company" means a company organized under the laws of
68	68	18 any country other than the United States or a territory or insular
69	69	19 possession thereof or of the District of Columbia.
70	70	20 (g) "Person" includes individuals, corporations, firms, companies,
71	71	21 associations, and partnerships. The personal pronoun includes all
72	72	22 genders. The singular includes the plural, and the plural includes the
73	73	23 singular.
74	74	24 (h) "Commissioner" means the insurance commissioner of this state.
75	75	25 (i) "Bureau" means the worker's compensation rating bureau of
76	76	26 Indiana.
77	77	27 (j) "Interested person" means any person who has filed with the
78	78	28 department a request to be notified under sections 4(b) and 20.2(c) of
79	79	29 this chapter of each filing of rates by the bureau or a company.
80	80	30 (k) "Assigned risk plan" means the plan by which members of the
81	81	31 worker's compensation rating bureau provide for the insurance of
82	82	32 rejected risks.
83	83	33 (l) "Classification system" or "classification" means the plan,
84	84	34 system, or arrangement for recognizing differences in exposure to
85	85	35 hazards among industries, occupations, or operations of insurance
86	86	36 policyholders.
87	87	37 (m) "Experience rating" means a rating procedure utilizing past
88	88	38 insurance experience of the individual policyholder to forecast future
89	89	39 losses by measuring the policyholder's loss experience against the loss
90	90	40 experience of policyholders in the same classification to produce a
91	91	41 prospective premium credit, debit, or unity modification.
92	92	42 (n) "Rate" means the cost of insurance per exposure base unit, prior
93	93	2024 IN 1159—LS 6694/DI 141 3
94	94	1 to any application of individual risk variations based on loss or expense
95	95	2 considerations, and does not include minimum premiums.
96	96	3 (o) "Schedule rating plan" means an independent rating plan that
97	97	4 measures hazard differences that have an immediate bearing on the
98	98	5 probability or severity of loss and applies debits and credits to modify
99	99	6 the premium for a risk.
100	100	7 (p) "Statistical plan" means the plan, system, or arrangement used
101	101	8 in collecting data.
102	102	9 (q) "Subrogation claim" means a claim or action that is filed or
103	103	10 otherwise initiated:
104	104	11 (1) by a company against a third party that caused a loss to an
105	105	12 insured party; and
106	106	13 (2) to recover from the third party the amount of a claim
107	107	14 paid:
108	108	15 (A) by the company; and
109	109	16 (B) either:
110	110	17 (i) to the insured party; or
111	111	18 (ii) on behalf of the insured party;
112	112	19 for the loss to the insured party.
113	113	20 (r) "Successful subrogation claim" means a subrogation claim
114	114	21 that results in payment of money by a third party to a company,
115	115	22 even if the amount of money paid to the company by the third
116	116	23 party is less than the amount of the claim paid:
117	117	24 (1) by the company; and
118	118	25 (2) either:
119	119	26 (A) to the insured party; or
120	120	27 (B) on behalf of the insured party;
121	121	28 for the loss to the insured party.
122	122	29 (q) (s) "Supplementary rate information" means any manual or plan
123	123	30 of rates, classification system, rating schedule, minimum premium,
124	124	31 rating rule, rating plan, and any other similar information needed to
125	125	32 determine the applicable premium for an insured.
126	126	33 (r) (t) "Supporting information" means the experience and judgment
127	127	34 of the filer and the experience or data of other companies or
128	128	35 organizations relied on by the filer, the interpretation of any statistical
129	129	36 data relied on by the filer, descriptions of methods used in making the
130	130	37 rates, and any other similar information required to be filed by the
131	131	38 commissioner.
132	132	39 SECTION 3. IC 27-7-2-20 IS AMENDED TO READ AS
133	133	40 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 20. (a) Except as
134	134	41 provided in section 20.5 of this chapter, every company shall adhere
135	135	42 to manual rules, policy forms, a statistical plan, a classification system,
136	136	2024 IN 1159—LS 6694/DI 141 4
137	137	1 and experience rating plan filed by the bureau and approved by the
138	138	2 commissioner.
139	139	3 (b) The commissioner shall designate the bureau to assist in
140	140	4 gathering, compiling, and reporting relevant statistical information.
141	141	5 Every company shall record and report its worker's compensation
142	142	6 experience to the bureau according to the statistical plan approved by
143	143	7 the commissioner. The report shall include any deviation from the filed
144	144	8 recommended minimum premiums and rates, in total and by
145	145	9 classification. The bureau shall annually submit data concerning these
146	146	10 deviations to the department. Upon receipt, the department shall
147	147	11 evaluate the data and prepare a report concerning the effect of
148	148	12 competitive rating in Indiana. The department shall make the report
149	149	13 available not later than October 31 of each year.
150	150	14 (c) Every company shall adhere to the approved manual rules,
151	151	15 policy forms, statistical plan, classification system, and experience
152	152	16 rating plan in the recording and reporting of data to the bureau.
153	153	17 (d) Copies of all approved classifications, rules, and forms shall be
154	154	18 provided to the worker's compensation board.
155	155	19 SECTION 4. IC 27-7-2-20.5 IS ADDED TO THE INDIANA CODE
156	156	20 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
157	157	21 1, 2024]: Sec. 20.5. (a) Except as provided in subsection (d), when
158	158	22 a company makes a successful subrogation claim, the company
159	159	23 shall revise the experience rating of the insured party in the
160	160	24 manner set forth in this section.
161	161	25 (b) After a company makes a successful subrogation claim, the
162	162	26 company shall revise all of the insured party's prior experience
163	163	27 ratings that were modified as a result of the insured party's claim
164	164	28 for which the company made the successful subrogation claim.
165	165	29 (c) The company shall revise the prior experience ratings
166	166	30 described under subsection (b) in a manner that:
167	167	31 (1) accounts for the entire amount the company received as a
168	168	32 result of the successful subrogation claim; and
169	169	33 (2) ensures that the insured party receives, by way of the
170	170	34 revised experience ratings, a monetary benefit equivalent to
171	171	35 the amount the company received as a result of the successful
172	172	36 subrogation claim.
173	173	37 (d) A company is not required to comply with this section if:
174	174	38 (1) at the time of the successful subrogation claim, the insured
175	175	39 party who submitted the claim for which the company made
176	176	40 the subrogation claim is not the owner of the policy under
177	177	41 which the claim was submitted; or
178	178	42 (2) compliance with this section would require violation of a
179	179	2024 IN 1159—LS 6694/DI 141 5
180	180	1 contract that was entered into, amended, or renewed before
181	181	2 July 1, 2024.
182	182	2024 IN 1159—LS 6694/DI 141