OAR 836-042-0210
Rating Plans for which Employers May Be Combined; Retrospective Rating Deposit Required; When Group Rating May Be Applied

(1)

An insurer may use the combined experience of a group of employers for experience rating, retrospective rating, or premium discounting of workers’ compensation insurance premiums for the employers in the group. An insurer may also apply other factors approved by the Insurance Commissioner which are not adequately reflected in experience rating, retrospective rating, or premium discounting and which satisfy the requirements of section (6) of this rule.

(2)

If the combined experience of a group of employers is used for experience rating, a modification factor to supplement the modification factors of individual employers shall be calculated and distributed by a licensed rating organization according to the Experience Rating Plan of the National Council on Compensation Insurance filed with the Insurance Commissioner. Limitations or other data adjustments shall be applied only to the experience data of individual group members. The rating organization shall provide such service to an insurer upon request and may charge a reasonable fee.

(3)

The premiums of a group of employers may be combined for premium discounting if the group can reasonably justify the combination by showing savings in acquisition, premium collection, policy issuance or other insurance administrative expenses or insurance services provided by an organization of which employers in the group are members.

(4)

The premiums of a group of employers may be combined for retrospective rating either to enhance volume and reduce insurance charges or to realize expense savings as would be allowed for premium discounting.

(5)

Rating modifications based on the combined experience of a group of employers shall apply to individual members of the group as of the individual member’s first anniversary rating date on or after the group anniversary rating date.

(6)

An insurer may file a group rating plan for applying factors not adequately recognized and reflected by experience rating, retrospective rating, or premium discounting. The effective date of a proposed plan shall be the date specified in the filing, but not sooner than 30 days after the filing is received by the Insurance Commissioner. The Commissioner may approve an earlier effective date not preceding the date the filing was received. If, within the 30-day period, the Commissioner finds the proposal does not meet the standards and requirements of ORS Chapter 737 (Rates and Rating Organizations) and this section, the Commissioner shall notify the insurer that the proposal has been disapproved, stating the basis for such action, and the proposal shall not become effective. If, following the 30-day period, the commissioner finds the proposal does not satisfy the requirements and standards of ORS Chapter 737 (Rates and Rating Organizations), the commissioner may proceed according to ORS 737.336 (Disapproval of filings by director)(2), 737.215 (Effect of noncompliance with rating regulation), and 737.045 (Remedies of director for violations of chapter) to disapprove the plan. The Commissioner shall not approve a plan for applying rating factors unless:

(a)

All factors can be objectively evaluated and are consistently and uniformly applied and evidence thereof maintained by the insurer;

(b)

Premium modifications for each factor are supported by actuarial evidence;

(c)

The insurer captures and maintains statistical data demonstrating the rating equity of applying premium modifications; and

(d)

The application of a rating factor does not inappropriately duplicate the recognition of experience used in other rating factors.

Source: Rule 836-042-0210 — Rating Plans for which Employers May Be Combined; Retrospective Rating Deposit Required; When Group Rating May Be Applied, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=836-042-0210.

836–042–0001
Statutory Authority 836–042–0005
Definitions 836–042–0015
Workers’ Compensation Filings — Procedural Rules for Insurers and Rating Organizations 836–042–0020
Insurers Must Demonstrate Statistical Reporting Ability 836–042–0025
Workers’ Compensation Filings Standards for Unfair Discrimination 836–042–0035
Workers’ Compensation Policy Forms Filings by Insurers 836–042–0040
Statutory Authority 836–042–0043
Definition 836–042–0045
Workers’ Compensation Statistical Plan 836–042–0050
Statutory Authority 836–042–0055
Definitions, Payroll Inclusions and Exclusions 836–042–0060
Conditions for Division of Payroll of Individual Employees 836–042–0070
Statutory Authority and Purpose 836–042–0075
Definitions 836–042–0080
Rate Filing Requirements and Standards 836–042–0085
Statistical Data Maintenance and Reporting Requirements 836–042–0090
Trade Practices Found Injurious to the Insurance-Buying Public 836–042–0100
Statutory Authority and Purpose 836–042–0105
Definitions 836–042–0110
Rate Filing Requirements 836–042–0115
Trade Practices Found Injurious to the Insurance Buying Public 836–042–0201
Statutory Authority 836–042–0205
Definitions 836–042–0210
Rating Plans for which Employers May Be Combined 836–042–0215
Consent to Group Rating Required Before Policy Issuance 836–042–0220
Filing Requirements and Procedural Rules 836–042–0225
Criteria for Grouping 836–042–0300
Statutory Authority 836–042–0302
Definitions 836–042–0304
Fictitious Arrangement Prohibited 836–042–0306
Premium Rates 836–042–0308
Statistics 836–042–0310
Producers 836–042–0312
Compulsory Participation Prohibited 836–042–0314
Tie-In Sales Prohibited 836–042–0316
Disclosure Required 836–042–0318
Underwriting Standards 836–042–0320
Cancellation and Non-Renewal 836–042–0322
Compulsory Facilities 836–042–0400
Statutory Authority 836–042–0405
Definitions 836–042–0410
Commercial Risks 836–042–0415
Day Care Facilities 836–042–0420
Anniversary Filings 836–042–0425
Statistics 836–042–0430
Disclosure Required for Day Care Facilities 836–042–0501
Statutory Authority 836–042–0505
Definitions 836–042–0510
Rates, Rating Plans System — Prior Review 836–042–0512
Specified Commercial Liability Markets 836–042–0515
Commercial Liability Filings — Procedural Rules for Insurers and Rating Organizations 836–042–0520
Supporting Data
Last Updated

Jun. 8, 2021

Rule 836-042-0210’s source at or​.us