WILLIAM DONALD SCHAEFER, Governor                    Ch. 590

COMPENSATION INSURER SHALL ADHERE TO THE POLICY FORMS FILED BY
THE RATING ORGANIZATION.

(D) (1) EVERY WORKERS' COMPENSATION INSURER SHALL ADHERE TO
A UNIFORM CLASSIFICATION SYSTEM AND UNIFORM EXPERIENCE RATING
PLAN FILED WITH THE COMMISSIONER BY A RATING ORGANIZATION
DESIGNATED BY THE COMMISSIONER AND SUBJECT TO HIS DISAPPROVAL.

(2) (I) AN INSURER MAY DEVELOP SUBCLASSIFICATIONS OF
THE UNIFORM CLASSIFICATION SYSTEM UPON WHICH A RATE MAY BE MADE.

(II) ANY SUBCLASSIFICATION DEVELOPED UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL BE FILED WITH THE
COMMISSIONER 30 DAYS PRIOR TO ITS USE.

(III) IF THE INSURER FAILS TO DEMONSTRATE THAT
THE DATA PRODUCED UNDER A SUBCLASSIFICATION CAN BE REPORTED IN A
MANNER CONSISTENT WITH THE UNIFORM STATISTICAL PLAN AND
CLASSIFICATION SYSTEM, THE COMMISSIONER SHALL DISAPPROVE THE
SUBCLASSIFICATION.

(E) EVERY WORKERS' COMPENSATION INSURER SHALL RECORD AND
REPORT ITS WORKERS' COMPENSATION EXPERIENCE TO A RATING
ORGANIZATION AS SET FORTH IN THE UNIFORM STATISTICAL PLAN
APPROVED BY THE COMMISSIONER.

(F) (1) SUBJECT TO THE APPROVAL OF THE COMMISSIONER, A
RATING ORGANIZATION SHALL DEVELOP AND FILE RULES REASONABLY
RELATED TO THE RECORDING AND REPORTING OF DATA PURSUANT TO THE
UNIFORM STATISTICAL PLAN, UNIFORM EXPERIENCE RATING PLAN, AND THE
UNIFORM CLASSIFICATION SYSTEM.

(2) EVERY WORKERS' COMPENSATION INSURER SHALL ADHERE
TO THE APPROVED RULES AND EXPERIENCE RATING PLAN IN WRITING AND
REPORTING ITS BUSINESS.

(3) AN INSURER MAY NOT AGREE WITH ANY OTHER INSURER
OR WITH A RATING ORGANIZATION TO ADHERE TO RULES WHICH ARE NOT
REASONABLY RELATED TO THE RECORDING AND REPORTING OF DATA
PURSUANT TO THE UNIFORM CLASSIFICATION SYSTEM OR THE UNIFORM
STATISTICAL PLAN.

(G) THE EXPERIENCE RATING PLAN METHODOLOGY REQUIRED UNDER
ARTICLE 48A, § 244Y(C)(4) OF THE CODE SHALL HAVE AS A BASIS:

(1) CONTAIN REASONABLE ELIGIBILITY STANDARDS;

(2) PROVIDE ADEQUATE INCENTIVES FOR LOSS PREVENTION;
AND

(3) PROVIDE FOR SUFFICIENT PREMIUM DIFFERENTIALS SO
AS TO ENCOURAGE SAFETY.

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