374.790. Workers' compensation, residual market, department to submit report to general assembly, contents. - Missouri Statutes

Workers' compensation, residual market, department to submit report togeneral assembly, contents.

374.790. The department of insurance, financial institutions andprofessional registration shall prepare and submit a plan to the generalassembly by September 1, 1993, to reduce the number of employers insuredthrough the residual market. The department shall specifically examine andaddress in its plan the following topics:

(1) The use of an employer's experience modification factor and theappropriate level thereof as an objective criterion in determining eligibilityfor coverage;

(2) The maximum amount of such coverage an insurer would be required toissue, expressed as a percentage of its voluntary business;

(3) Providing a system of incentives to insurers to voluntarily coveremployers which had been insured through the residual market by reducing theamount of coverage required to be provided by such insurer under the plan;

(4) The effect of the implementation of such plan on the competitivevoluntary insurance workers' compensation market in Missouri in terms of thenumber of insurers actively competing, the availability of coverage byclassification and pricing by classification;

(5) Permitting insurers to file separate rates by classification foremployers which they may be required to insure under such plan;

(6) Requiring that only agents which have been appointed by such insurermay submit applications for coverage under such plan;

(7) The results of this plan in other jurisdictions where it has beenimplemented in either workers' compensation or other lines of insurance;

(8) Requiring nonexperienced rated employers or employers not eligiblefor experience rating, as a condition to receive coverage, to utilize theinsurer's managed care medical program and to comply with the insurer's losscontrol or safety engineering program.

Upon receipt of the plan, the general assembly shall, by concurrent resolutiondisapprove such plan by September 24, 1993. If the plan is not disapproved itshall be implemented by rule on January 1, 1994. If the plan is not submittedto the general assembly under the provisions of this section, it shall not beimplemented by rule.

(L. 1993 S.B. 251 § 16)

(1995) Where statute required director to submit plan to general assembly when legislature was not in session, court properly prohibited the director of insurance from implementing "Workers' Compensation Residual Market Depopulation Plan" by rule. Chief clerk is not member of house of representatives and has no duty to distribute plans to members, therefore there was no receipt of the plan by the house members. Statute provided that plan would become effective by rule if not disapproved by concurrent resolution within thirty days. State ex rel. Royal Insurance v. Director of the Missouri Department of Insurance, 894 S.W.2d 159 (Mo. en banc).