FIRSTREGULARSESSION
HOUSEBILLNO.1191
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEJOHNSON.
2253H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsection287.280,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
supplementalworkers'compensationinsuranceforcertainfirstresponders.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section287.280,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection287.280,toreadasfollows:
287.280.1.(1)Everyemployersubjecttotheprovisionsofthischaptershall,on
2eitheranindividualorgroupbasis,insuretheirentireliabilityundertheworkers'
3compensationlaw;andmayinsureinwholeorinparttheiremployerliability,undera
4policyofinsuranceoraself-insuranceplan,exceptashereafterprovided,withsome
5insurancecarrierauthorizedtoinsuresuchliabilityinthisstate,exceptthatanemployeror
6groupofemployersmaythemselvescarrythewholeoranypartoftheliabilitywithout
7insuranceuponsatisfyingthedivisionoftheirabilitytodoso.Ifanemployerorgroupof
8employershavequalifiedtoself-insuretheirliabilityunderthischapter,thedivisionof
9workers'compensationmay,ifitfindsafterahearingthattheemployerorgroupofemployers
10arewillfullyandintentionallyviolatingtheprovisionsofthischapterwithintenttodefraud
11theiremployeesoftheirrighttocompensation,suspendorrevoketherightoftheemployeror
12groupofemployerstoself-insuretheirliability.Iftheemployerorgroupofemployersfailto
13complywiththissection,aninjuredemployeeorhisorherdependentsmayelectafterthe
14injuryeithertobringanactionagainstsuchemployerorgroupofemployerstorecover
15damagesforpersonalinjuryordeathanditshallnotbeadefensethattheinjuryordeathwas
16causedbythenegligenceofafellowservant,orthattheemployeehadassumedtheriskofthe
17injuryordeath,orthattheinjuryordeathwascausedtoanydegreebythenegligenceofthe
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18employee;ortorecoverunderthischapterwiththecompensationpaymentscommutedand
19immediatelypayable;or,iftheemployeeelectstodoso,heorshemayfilearequestwiththe
20divisionforpaymenttobemadeformedicalexpensesoutofthesecondinjuryfundas
21providedinsubsection7ofsection287.220.Iftheemployerorgroupofemployersare
22carryingtheirowninsurance,ontheapplicationofanypersonentitledtocompensationand
23onproofofdefaultinthepaymentofanyinstallment,thedivisionshallrequiretheemployer
24orgroupofemployerstofurnishsecurityforthepaymentofthecompensation,andifnot
25given,allothercompensationshallbecommutedandbecomeimmediatelypayable;provided,
26thatemployersengagedintheminingbusinessshallberequiredtoinsureonlytheirliability
27hereundertotheextentoftheequivalentofthemaximumliabilityunderthischapterforten
28deathsinanyoneaccident,buttheemployerorgroupofemployersmaycarrytheirownrisk
29foranyexcessliability.Whenagroupofemployersenterintoanagreementtopooltheir
30liabilitiesunderthischapter,individualmemberswillnotberequiredtoqualifyasindividual
31self-insurers.
32 (2)Anemployerorgroupofemployerssubjecttotheprovisionsofthischapter
33maycontractforadditionalsupplementalinsurancecoverageforvolunteerfirefighters
34injuredinthelineofdutytocoveradditionalpaymentofworkers'compensation
35benefitsunderthelaw,includingtemporarytotaldisabilitybenefitsowedundersection
36287.250,foroverandabovethestatutoryamountsallowedunderthischapter.
37Notwithstandinganylawtothecontrary,nothinginthissubdivisionpreventsa
38volunteerfiredepartment,acountyorregionalassociationofvolunteerfire
39departments,municipality,oranycombinationofthese,orgroupsofemployers,that
40havebeengrantedauthoritybythedivisiontoself-insuretheirworkers'compensation
41liabilities,fromoptionallycontributinginpartorinwholetothepaymentofpremiums
42relatingtotheadditionalsupplementalinsurancecoverage.Inadditiontoanyother
43purposeauthorizedbylaw,acountygoverningbodyoramunicipalgoverningbody
44mayuseproceedsfromcountyandmunicipaltaxesnotearmarkedforotherpurposes
45forthepurposesofprovidingadditionalsupplementalinsurancecoverageunderthis
46subdivision.
47 2.Groupsofemployersqualifiedtoinsuretheirliabilitypursuanttochapter537or
48thischaptershallutilizeauniformexperienceratingplanpromulgatedbyanapproved
49advisoryorganization.Suchgroupsshalldevelopexperienceratingsfortheirmembersbased
50ontheplan.Nothinginthissectionshallrelieveanemployerfromremitting,withoutany
51chargetotheemployer,theemployer'sclaimshistorytoanapprovedadvisoryorganization.
52 3.Foreveryentityqualifiedtogroupself-insuretheirliabilitypursuanttothischapter
53orchapter537,eachentityshallnotauthorizetotaldiscountsforanyindividualmember
HB1191 2 54exceedingtwenty-fivepercentbeginningJanuary1,1999.Alldiscountsshallbebasedon
55objectivequantitativefactorsandapplieduniformlytoalltrustmembers.
56 4.Anygroupofemployersthathavequalifiedtoself-insuretheirliabilitypursuantto
57thischaptershallfilewiththedivisionpremiumrates,basedonpurepremiumratedata,
58adjustedforlossdevelopmentandlosstrendingasfiledbytheadvisoryorganizationwiththe
59departmentofcommerceandinsurancepursuanttosection287.975,plusanyestimated
60expensesandotherfactorsorbasedonaveragerateclassificationscalculatedbythe
61departmentofcommerceandinsuranceastakenfromthepremiumratesfiledbythetwenty
62insurancecompaniesprovidingthegreatestvolumeofworkers'compensationinsurance
63coverageinthisstate.Therateisinadequateiffundsequaltothefullultimatecostof
64anticipatedlossesandlossadjustmentexpensesarenotproducedwhentheprospectiveloss
65costsareappliedtoanticipatedpayrolls.Theprovisionsofthissubsectionshallnotapplyto
66thosepoliticalsubdivisionsofthisstatethathavequalifiedtoself-insuretheirliability
67pursuanttothischapterasauthorizedbysection537.620onanassessmentplan.Anysuch
68groupmayfilewiththedivisionacompositerateforallcoveragesprovidedunderthat
69section.
70 5.Whenconsideringapplicationsfornewtrustself-insurers,asdescribedunder8
71CSR50-3.010,thedivisionshallrequireproofofpaymentbyeachmemberofnotlessthan
72twenty-fivepercentoftheestimatedannualpremium;exceptthat,fornewmemberswhowish
73tojoinanexistingtrustself-insurerduringthepolicyyearratherthanatthebeginningofthe
74policyyear,thedivisionshallrequireproofofpaymentofthelesseroftheestimatedpremium
75ofthreemonthsortheestimatedpremiumforthebalanceofthepolicyyear.
76 6.Self-insuredtrusts,asdescribedunder8CSR50-3.010,mayinvestsurplusmoneys
77fromapriortrustyearnotneededforcurrentobligations.Notwithstandinganyprovisionof
78lawtothecontrary,uponapprovalbythedivision,aself-insuredtrustmayinvestuptoone
79hundredpercentofsurplusmoneysinsecuritiesdesignatedbythestatetreasureras
80acceptablecollateraltosecurestatedepositsundersection30.270.
81 7.Anyfindingordeterminationmadebythedivisionunderthissectionmaybe
82reviewedasprovidedinsections287.470and287.480.
83 8.Ifagroupofemployerswhohavebeengrantedself-insuranceauthorityunderthis
84chapterorchapter537orapublicsectorindividualemployergrantedself-insuranceauthority
85underthischapterisdeemedinsolvent,determinedtobeinsolvent,orfilesforbankruptcy,
86andfailstopayanyofitsobligationsthatareowedtoaninjuredemployeeoraninjured
87employee'sdependentordependentspursuanttothischapter,whetherbasedupona
88compromisesettlementapprovedpursuanttosection287.390orbaseduponanawardissued
89pursuanttothischapter,thedivisionshallcallupontheentiresecuritypostedbythegroupof
90employersorpublicsectorindividualemployer.Thedivisionmayreferallknownlossesor
HB1191 3 91casesofthegroupofemployersorpublicsectorindividualemployertoathird-party
92administratororanysuchentityauthorizedinthisstatetoadministertheworkers'
93compensationcases.Thethird-partyadministratororentitytowhichthelossesare
94transferredshallhavetheauthoritytoreceivethesecurityproceedsfromthedivisionanduse
95theproceeds,afterdeductingreasonableadministrativeexpenses,topaythecompensation
96benefitsowedpursuanttothischapter.Thesecurityproceedsshallnotbeconsideredstate
97propertyandshallnotbesubjecttoappropriationbythegeneralassembly.Anyunused
98portionofthesecurityproceedsshallbereturnedtothedivision.Thegroupofemployersor
99publicsectorindividualemployermayapplytothedivisionforreleaseoftheunusedportion
100ofthesecurityproceedsassetforthinrulespromulgatedbythedivision.Neitherthedivision
101noranythird-partyadministratorshallbeobligatedorrequiredtopayanyobligationsor
102moneysinanamountinexcessofthesecurityproceeds,andneitherthedivisionnorany
103third-partyadministratorshallbeliableforanyinterestorpenalties.Thejointandseveral
104liabilityofthemembersofagroupthatisdeemedinsolvent,thatisdeterminedtobe
105insolvent,orthatfilesforbankruptcyshallcontinueandshallnotbeterminatedbypayment
106ofbenefitsunderthissubsection.
107 9.Noruleorportionofarulepromulgatedundertheauthorityofthissectionshall
108becomeeffectiveunlessithasbeenpromulgatedpursuanttotheprovisionsofsection
109536.024.
110 10.Anyrecordssubmittedpursuanttothissection,andpursuanttoanyrule
111promulgatedbythedivisionpursuanttothissection,shallbeconsideredconfidentialandnot
112subjecttochapter610.Anypartytoaworkers'compensationcaseinvolvingthepartythat
113submittedtherecordsshallbeabletosubpoenatherecordsforuseinaworkers'
114compensationcase,iftheinformationisotherwiserelevant.
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