Report Title:

Workers' Compensation Insurance; Rates

Description:

Broadens the insurance commissioner's power to roll back workers' compensation insurance rates to situations in which the insurer fails to give proper consideration to factors deemed by the commissioner to be relevant or appropriate.

HOUSE OF REPRESENTATIVES

H.B. NO.

2779

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to workers' compensation insurance.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 431:14-120, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The commissioner may institute proceedings for appropriate relief including but not limited to proceedings to roll back current rates whenever it appears to the commissioner that an insurer or other interested persons regulated by this article affecting workers' compensation insurance rates has:

(1) Violated or failed to comply with any provisions of this part or of any state or federal law;

(2) Failed to comply with any rule, regulation, or other requirement of any other state or federal agency which affects workers' compensation insurance rates;

(3) Failed to comply with any provision of its charter or franchise;

(4) Set or applied any rates, classification, charges, or rules affecting workers' compensation insurance that are unreasonable or are unreasonably discriminatory;

(5) Failed to give appropriate consideration to investment income earned or realized by insurers, including investment income earned from unearned premium and loss reserve funds in making rates; [or]

(6) Failed to recognize good safety performance records of employers in setting premium rates and levels[.]; or

(7) Failed to give appropriate consideration to any other factor deemed relevant or appropriate by the commissioner."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________