Page 14 - NL NOV 2019.indd

14 November 2019
Continued From page 13 preceding year bears to the total compensa on premium
known as an experience-ra ng modifi er. The experience- wri en in the state by all such insurers during the previous
modifi ca on factor is a rate factor that represents an calendar year.
employer’s loss and claims experience compared with the
average loss and claims experience of employers that share Premium tax: The state fund and employers’ insurers must
the job classifi ca ons applied to that employer. pay a semiannual premium tax, which is due within 30 days
a er February 1 and 30 days a er July 1.
An employer’s experience period includes loss and claims
data from policy years that began up to 57 months before Eff ec ve for 2019, the semi-annual premium tax rate is
the poten al eff ec ve date of the experience-modifi ca on 2 percent of the net premium employers’ insurers have
factor, but no more recently than 21 months before the wri en during the preceding six months, with a minimum
date. For Idaho, the threshold amount for total premiums semiannual tax payment$75. This rate also was in eff ect for
in the most recent 24-month period is $6,000 and the 2018.
threshold amount of average annual premiums over the
experience period is $3,000. Among the determinants Insurers can deduct 50 percent of the premium tax from any
sum they are required to pay.
of an employer’s experience-modifi ca on factor are the
frequency with which employees experience injuries and Net premiums are defi ned as the amount of gross direct
illnesses in the course of work and the severity of the premiums wri en, less returned premiums and premiums
injuries and illnesses. The frequency of the incidents has on policies not taken. Dividends paid, declared, or payable
a greater eff ect on an employer’s experience-modifi ca on are not deduc ble in arriving at the net premium.
factor than the severity of the incidents.
Premium rate reduc on: Covered employers can be granted
Experience-modifi ca on factors for Idaho employers are a premium discount on workers’ compensa on insurance
established by the NCCI, and private insurers of Idaho policies, provided they establish and maintain alcohol-
employers must apply the experience-modifi ca on factors and drug-free workplace programs that comply with the
when assessing workers’ compensa on premiums. The requirements of the Idaho Private Employer Alcohol and
NCCI annually updates employers’ experience-modifi ca on Drug-Free Workplace Act.
factors.
No fi ca on Requirements
The result of mul plying an employer’s total subject Injured employees must no fy their employer within 60
premium by an experience-modifi ca on factor is the days of an accident. The me limit is excusable for good
employer’s total modifi ed premium. An experience-rated cause. The no ce must be in wri ng, contain the name and
employer’s total premium due generally is its total modifi ed address of the employee, and give the me, place, nature
premium plus supplemental risk-exposure addi ons and and cause of the injury. Inaccuracies in sta ng the me,
minus applicable discounts. place, nature, and cause of the injury do not bar a claim
unless the employer has been prejudiced by such a mistake;
Annual assessments: Annual assessments are calculated by
subtrac ng the cash balance of the fund from expenditures similarly, a delay in giving no ce will not bar a claim unless
the employer has been prejudiced by the delay.
made and mul plying by two. This assessment is then
prorated for every insurer and the state insurance fund, For occupa onal diseases, employees must no fy their
based on the share of benefi ts paid. The minimum annual employer within 60 days of the manifesta on of the
assessment is $200. disease. Alterna vely, if the employer cannot be reasonably
located, no ce must be fi led with the commission within 90
Assigned risk plan: The director of the department of days of the fi rst manifesta on of the disease. When death
insurance can put into eff ect a reasonable system for
the equitable appor onment among all insurers wri ng occurs as a result of an occupa onal disease, no ce must be
given to the employer within 90 days, or to the commission
workers’ compensa on insurance in the state of risks who within 90 days if the employer cannot be located.
are in good faith en tled to but are unable to procure
insurance through ordinary methods. The system must Recordkeeping Requirements
provide that an applicant, if not in default on workers’ Employers are required to make a record of all injuries
compensa on premiums, will be provided coverage upon requiring medical treatment or causing at least one
applica on and payment of premium. Assignment of these day’s absence. The record must be completed as soon as
risks must be made in such a way that, as far as prac cable, prac cable but not later than 10 days a er the accident. A
no insurer will be assigned a larger propor on of supplementary report is required a er 60 days or when the
compensa on premiums under assigned policies during any disability ends.
calendar year than that which the total of compensa on
premiums wri en in the state by such insurer during the
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Timber Products Manufacturers Associa on