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TO AMEND SECTION 38-73-520, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RATE FILINGS REQUIRED, SO AS TO REQUIRE WORKERS' COMPENSATION INSURERS TO FILE WITH THE DEPARTMENT OF INSURANCE THEIR LOSS COSTS MULTIPLIERS; TO AMEND THE 1976 CODE BY ADDING SECTION 28-73-525 SO AS TO PROVIDE THE TIME FRAME IN WHICH WORKERS' COMPENSATION INSURERS MUST FILE THEIR LOSS COSTS MULTIPLIERS AND TO FURTHER PROVIDE THE MINIMUM INFORMATION THAT MUST BE INCLUDED IN THEIR FILINGS; TO AMEND SECTION 38-73-960, RELATING TO EFFECTIVE DATES OF PROPERTY AND CASUALTY RATE FILINGS, SO AS TO EXCLUDE WORKERS' COMPENSATION LOSS COSTS MULTIPLIERS FROM THOSE PROVISIONS; TO AMEND THE 1976 CODE BY ADDING SECTION 38-73-965 SO AS TO PROVIDE THAT THE EFFECTIVE DATE OF FILINGS FOR WORKERS' COMPENSATION LOSS COSTS MULTIPLIERS ARE GOVERNED BY SECTION 38-73-525; AND TO AMEND SECTION 38-73-990, RELATING TO THE DISAPPROVAL OF FILINGS, SO AS TO PROVIDE THAT THE DIRECTOR OR HIS OR HER DESIGNEE HAS THE AUTHORITY TO DISAPPROVE ANY WORKERS' COMPENSATION RATES AT ANY TIME AFTER THEY BECOME EFFECTIVE IF HE OR SHE DETERMINES THE RATES DO NOT MEET THE REQUIREMENTS OF CHAPTER 73 OF TITLE 38.
SECTION 1. Section 38-73-520 of the 1976 Code is amended to read:
"Section 38-73-520. Every insurer shall must file with the department, except as to exempt commercial policies, every manual of classifications, rules, and rates, every rating plan, and every modification of any of these which it proposes to use. The filing exemption shall not apply to loss cost filings by advisory or rating organizations or to the multiplier for expenses, assessments, profit, and contingencies and any modifications to loss costs used by a workers' compensation insurer to be applied to approved loss costs to develop the insurer's rates as provided in Section 38-73-525. Every filing shall must state the proposed effective date and shall indicate the character and extent of the coverage contemplated."
SECTION 2. The 1976 Code is amended by adding:
"Section 38-73-525. At least thirty days prior to using new rates, every insurer writing workers' compensation must file its multiplier for expenses, assessments, profit, and contingencies and any information relied upon by the insurer to support the multiplier and any modifications to loss costs. The filing must contain, at a minimum, the following information: commission expense; other acquisition expense; general expense; expenses associated with recoveries from the Second Injury Fund; guaranty fund assessments; other assessments; premium taxes; miscellaneous taxes, licenses, or fees; and provision for profit and contingencies. Within the thirty-day period, if the director or his or her designee believes the information filed is not complete, the director or his or her designee must notify the insurer of additional information to be provided. Within fifteen days of receipt of the notification, the insurer must provide the requested information or file for a hearing challenging the reasonableness of the director's or his or her designee's request. The burden is on the insurer to justify the denial of the additional information. Unless a hearing has been requested, upon expiration of the thirty-day period or the fifteen-day period, whichever is later, the insurer may use the rates developed using the multiplier of expenses, assessments, profit, and contingencies."
SECTION 3. Section 38-73-960 of the 1976 Code is amended to read:
"Section 38-73-960. The director or his or her designee shall must review filings as soon as reasonably possible after they have been made in order to determine whether they meet the requirements of this chapter. Subject to the exceptions specified in Sections 38-73-965, 38-73-970, and 38-73-980, each filing must be on file for a waiting period of sixty days before it becomes effective. This period may be extended by the director or his or her designee for an additional period not to exceed sixty days if he or she gives written notice within the waiting period to the insurer or rating organization which made the filing that he or she needs additional time for the consideration of the filing. Upon written application by the insurer or rating organization, the director or his or her designee may authorize a filing which he or she has reviewed to become effective before the expiration of the waiting period or any extension thereof. A filing meets the requirements of this chapter unless disapproved by the director or his or her designee within the waiting period or any extension thereof."
SECTION 4. The 1976 Code is amended by adding:
"Section 38-73-965. A filing made pursuant to Section 38-73-525 is governed by the effective dates specified in that section."
SECTION 5. Section 38-73-990 of the 1976 Code is amended to read:
"Section 38-73-990. If Except as provided in Section 38-73-995, if within the waiting period or any extension thereof as provided in Section 38-73-960 the director or his or her designee finds that a filing or a part of a filing does not meet the requirements of this chapter, he shall or she must send to the insurer or rating organization which made the filing written notice of disapproval of the filing or part of a filing specifying therein in what respects he or she finds the filing or part thereof fails to meet the requirements of this chapter and stating that the filing or the part may not become effective."
SECTION 6. The 1976 Code is amended by adding:
"Section 38-73-995. An insurer's workers' compensation rates developed using its most recent multiplier for expenses, assessments, profit, and contingencies and any modifications to loss costs may be disapproved at any time after they become effective if the director or his or her designee determines that they do not meet the requirements of this chapter."
SECTION 7. This act takes effect upon approval of the Governor.
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