PARRIS N. GLENDENING, Governor

Ch. 35

CONSISTENT WITH THE UNIFORM CLASSIFICATION SYSTEM AND UNIFORM
STATISTICAL PLAN, THE COMMISSIONER SHALL DISAPPROVE THE
SUBCLASSIFICATION.

(C) REPORT OF WORKERS' COMPENSATION EXPERIENCE.

EACH 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.

(D) ADHERENCE TO RULES OF RATING ORGANIZATION.

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

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

(3) AN INSURER MAY NOT AGREE WITH ANOTHER INSURER OR RATING
ORGANIZATION TO ADHERE TO RULES THAT ARE NOT REASONABLY RELATED TO
THE RECORDING AND REPORTING OF DATA UNDER THE UNIFORM CLASSIFICATION
SYSTEM OR UNIFORM STATISTICAL PLAN.

(E) BASIS OF RATING PLAN METHODOLOGY.

THE EXPERIENCE RATING PLAN METHODOLOGY REQUIRED UNDER §
11-330(D)(4) OF THIS SUBTITLE SHALL BE BASED ON:

(1) REASONABLE ELIGIBILITY STANDARDS;

(2) ADEQUATE INCENTIVES FOR LOSS PREVENTION; AND

(3) SUFFICIENT PREMIUM DIFFERENTIALS SO AS TO ENCOURAGE

SAFETY.

(F) BASIS FOR PREMIUM ADJUSTMENT,

(1) THE UNIFORM EXPERIENCE RATING PLAN SHALL BE THE
EXCLUSIVE MEANS OF PROVIDING PROSPECTIVE PREMIUM ADJUSTMENT BASED ON
MEASUREMENT OF THE LOSS-PRODUCING CHARACTERISTICS OF AN INDIVIDUAL
INSURED.

(2) AN INSURER MAY FILE A RATING PLAN THAT PROVIDES FOR
RETROSPECTIVE PREMIUM ADJUSTMENTS BASED ON AN INSURED'S PAST
EXPERIENCE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 244G(c) through (h).

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101

- 851 -