Section 10-130 - Schedule of premium rates.
§ 10-130. Schedule of premium rates.
(a) Required.- The Board shall adopt a schedule of premium rates in accordance with sound actuarial practices and shall ensure that the rates are not excessive, inadequate, or unfairly discriminatory.
(b) Review of rates.- The Commissioner shall review the Fund's rates as part of an examination under § 2-205 of the Insurance Article to determine whether the Fund's rate making practices produce actuarially sound rates.
(c) Criteria.-
(1) The Board shall determine the schedule by:
(i) classifying all of the policyholders on the basis of the respective level of hazard of their enterprises; and
(ii) setting a premium rate for each class on the basis of:
1. its level of hazard; and
2. incentives to prevent injuries to employees.
(2) To determine the schedule, the Board shall use the rating system that, in the opinion of the Board:
(i) most accurately measures the level of hazard for each policyholder on the basis of the number of injuries that occur in the enterprises of the policyholder;
(ii) encourages the prevention of injuries; and
(iii) ensures the solvency of the Fund from year to year.
(3) The Board may set minimum premium rates.
(d) Form.-
(1) The Board shall state premium rates as a percentage of the gross annual wages of employees to whom Title 9 of this article applies.
(2) For employees who work partly in and partly outside the State, the premium shall be based on wages for employment in the State.
(e) Effective period.-
(1) Except as provided in paragraph (2) of this subsection, the schedule of premium rates in effect at the beginning of a calendar year remains in effect for the year.
(2) The Board shall adjust classes and rates as often as the Board determines to be just and advantageous to meet the criteria under subsection (c)(2) of this section and to reflect changes in levels of hazards.
[An. Code 1957, art. 101, §§ 72, 74; 1991, ch. 8, § 2; 1994, ch. 285; 2009, ch. 60, § 5; ch. 336, § 2.]