(2) |
(a) |
An admitted insurer writing workers’ compensation insurance in this state shall pay to the tax commission, on or before March 31 in each year, a premium assessment on the basis of the total workers’ compensation premium income received by the insurer from workers’ compensation insurance in this state during the preceding calendar year as follows:
(i) |
on or before December 31, 2010, an amount of equal to or greater than 1%, but equal to or less than 5.75% of the total workers’ compensation premium income described in this Subsection (2); |
(ii) |
on and after January 1, 2011, but on or before December 31, 2022, an amount of equal to or greater than 1%, but equal to or less than 4.25% of the total workers’ compensation premium income described in this Subsection (2); and |
(iii) |
on and after January 1, 2023, an amount equal to 1.25% of the total workers’ compensation premium income described in this Subsection (2). |
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(b) |
Total workers’ compensation premium income means the net written premium as calculated before any premium reduction for any insured employer’s deductible, retention, or reimbursement amounts and also those amounts equivalent to premiums as provided in Section 34A-2-202. |
(c) |
The percentage of premium assessment applicable for a calendar year shall be determined by the Labor Commission under Subsection (2)(d). The total premium income shall be reduced in the same manner as provided in Subsections (1)(c)(i) and (1)(c)(ii), but not as provided in Subsection (1)(c)(iii). The commission shall promptly remit from the premium assessment collected under this Subsection (2):
(i) |
income to the state treasurer for credit to the Employers’ Reinsurance Fund created under Subsection 34A-2-702(1) as follows:
(A) |
on or before December 31, 2009, an amount of up to 5% of the total workers’ compensation premium income; |
(B) |
on and after January 1, 2010, but on or before December 31, 2010, an amount of up to 4.5% of the total workers’ compensation premium income; |
(C) |
on and after January 1, 2011, but on or before December 31, 2022, an amount of up to 3% of the total workers’ compensation premium income; and |
(D) |
on and after January 1, 2023, 0% of the total workers’ compensation premium income; |
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(ii) |
an amount equal to .25% of the total workers’ compensation premium income to the state treasurer for credit to the Workplace Safety Account created by Section 34A-2-701; |
(iii) |
an amount of up to .5% and any remaining assessed percentage of the total workers’ compensation premium income to the state treasurer for credit to the Uninsured Employers’ Fund created under Section 34A-2-704; and |
(iv) |
beginning on January 1, 2010, .5% of the total workers’ compensation premium income to the state treasurer for credit to the Industrial Accident Restricted Account created in Section 34A-2-705. |
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(d) |
(i) |
The Labor Commission shall determine the amount of the premium assessment for each year on or before each October 15 of the preceding year. The Labor Commission shall make this determination following a public hearing. The determination shall be based upon the recommendations of a qualified actuary. |
(ii) |
The actuary shall recommend a premium assessment rate sufficient to provide payments of benefits and expenses from the Employers’ Reinsurance Fund and to project a funded condition with assets greater than liabilities by no later than June 30, 2025. |
(iii) |
The actuary shall recommend a premium assessment rate sufficient to provide payments of benefits and expenses from the Uninsured Employers’ Fund and to maintain it at a funded condition with assets equal to or greater than liabilities. |
(iv) |
At the end of each fiscal year the minimum approximate assets in the Employers’ Reinsurance Fund shall be $5,000,000 which amount shall be adjusted each year beginning in 1990 by multiplying by the ratio that the total workers’ compensation premium income for the preceding calendar year bears to the total workers’ compensation premium income for the calendar year 1988. |
(v) |
The requirements of Subsection (2)(d)(iv) cease when the future annual disbursements from the Employers’ Reinsurance Fund are projected to be less than the calculations of the corresponding future minimum required assets. The Labor Commission shall, after a public hearing, determine if the future annual disbursements are less than the corresponding future minimum required assets from projections provided by the actuary. |
(vi) |
At the end of each fiscal year the minimum approximate assets in the Uninsured Employers’ Fund shall be $2,000,000, which amount shall be adjusted each year beginning in 1990 by multiplying by the ratio that the total workers’ compensation premium income for the preceding calendar year bears to the total workers’ compensation premium income for the calendar year 1988. |
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(e) |
A premium assessment that is to be transferred into the General Fund may be collected on premiums received from Utah public agencies. |
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