§ 28-37-13 - Payments into fund by insurers and employers.
SECTION 28-37-13
§ 28-37-13 Payments into fund by insurersand employers. – (a) For the privilege of writing or renewing workers' compensation insurance oremployer's liability insurance in this state, every mutual association or stockcompany so authorized, to be referred to as "insurers", and for the privilegeof being authorized, to make payments of workers' compensation directly to itsemployees, and every employer so authorized, to be referred to as "certifiedemployers", shall annually make the following payments to the workers'compensation administrative fund:
(1) In the case of an insurer, an amount measured by thepercentage of return as certified by the director pursuant to subsection (c) ofthis section of the gross premiums received for workers' compensation insuranceor employer's liability insurance written or renewed by it during the precedingcalendar year on risks within this state, but not less than one hundred dollars($100); and
(2) In the case of a certified employer, an amount measuredby the percentage of return as certified by the director pursuant to subsection(c) of this section of the premium which the employer would have had to pay toobtain workers' compensation insurance or employer's liability insurance forthe preceding calendar year, but not less than one hundred dollars ($100),which amount shall be determined by the director.
(b) Every certified employer and every insurer shall also payinto the workers' compensation administrative fund the sum of seven thousandfive hundred dollars ($7,500) for every case of injury causing death in whichthere is no person entitled to compensation.
(c) The director is obligated to determine on or before July15 of each year, after taking into account projected expenditures for thecurrent fiscal year and for the next fiscal year, what percentage of return,referred to as the "assessment", is needed to provide sufficient funds, inconjunction with appropriations from the general fund, if any, to fulfill thepurposes enumerated in § 28-37-1(b) and shall certify this assessment tothe governor and the general assembly. This assessment may be separatelydetermined for insurers and for certified employers. The payments, due withinsixty (60) days of notice each year pursuant to § 28-37-15 and 28-37-16,shall be made based upon the certified assessment.
(d) In recognition of the continued utilization of theworkers' compensation system by insurers who have discontinued writing workers'compensation policies in the state, if any insurer company, deemed by thedirector of the department of business regulation to have been licensed onJanuary 1, 1991 to write workers' compensation policies, discontinues theissuance of workers' compensation policies, such insurer shall be and remainobligated to pay the workers' compensation administrative fund assessment for aperiod of six (6) years subsequent to its discontinuation of the issuance ofsuch policies.
(2) In calculating the amount due by these insurancecompanies on the due date, as defined in subsection (c) of this section, of theyear after which it discontinues writing policies in this state (the base year)the director of labor and training will calculate an amount equal to theassessment in effect on the last date the insurer issued workers' compensationpolicies multiplied by the gross premiums received for workers' compensationinsurance or employers' liability insurance written or renewed by it during thebase year on risks within this state, but not less than one hundred dollars($100) each year.
(3) The basis for the calculation of the assessment in eachsucceeding year shall be a reduction of the base year assessment by incrementsof sixteen and two-thirds percent (16 2/3%) per each succeeding year.
(e) All penalties collected for any violation under chapters29 – 38 of this title shall be paid into this fund.
(f) Any employer, insurer, self-insurer, or groupself-insurer who has not paid assessments or who is not current with payment ofassessments into this fund shall not be permitted to place a claim against thefund. Reimbursement to any employer, insurer, self-insurer, or groupself-insurer who is not current with payment of assessments into this fundshall be suspended immediately as of the first date of arrearage.
(g) To be eligible to use any of the services funded by theworkers' compensation administrative fund an employer, insurer, self-insurer,or group self-insurer shall pay a fee of one thousand dollars ($1,000) perclaim, per month into the fund until the arrearage is paid in full in additionto any other interests or penalties.