287.957. Experience rating plan, contents. - Missouri Statutes

Experience rating plan, contents.

287.957. The experience rating plan shall contain reasonableeligibility standards, provide adequate incentives for loss prevention, andshall provide for sufficient premium differentials so as to encouragesafety. The uniform experience rating plan shall be the exclusive means ofproviding prospective premium adjustment based upon measurement of theloss-producing characteristics of an individual insured. An insurer maysubmit a rating plan or plans providing for retrospective premiumadjustments based upon an insured's past experience. Such system shallprovide for retrospective adjustment of an experience modification andpremiums paid pursuant to such experience modification where a priorreserved claim produced an experience modification that varied by greaterthan fifty percent from the experience modification that would have beenestablished based on the settlement amount of that claim. The rating planshall prohibit an adjustment to the experience modification of an employerif the total medical cost does not exceed one thousand dollars and theemployer pays all of the total medical costs and there is no lost time fromthe employment, other than the first three days or less of disability undersubsection 1 of section 287.160, and no claim is filed. An employer optingto utilize this provision maintains an obligation to report the injuryunder subsection 1 of section 287.380.

(L. 1993 S.B. 251 § 28, A.L. 2005 S.B. 1 & 130)