Montana Code 39-8-403. Workers’ compensation insurer requirements
39-8-403. Workers’ compensation insurer requirements. (1) An insurer that provides workers’ compensation insurance to a professional employer organization shall base classifications and rates applicable to the payroll of a worker who is subject to either a professional employer arrangement or an employee leasing arrangement as though the worker has been a direct employee of the client employer. If an experience modification has been established for the client employer, that experience modification must be audited using the factors in subsection (3) and must be applied by the insurer to the premium for the client employer’s workers.
Terms Used In Montana Code 39-8-403
- Client: means a person that obtains all or part of the person's workforce from another person through a professional employer arrangement. See Montana Code 39-8-102
- Employee leasing arrangement: means an arrangement by contract or otherwise under which a professional employer organization hires its own employees and assigns the employees to work for another person to staff and manage, or to assist in staffing and managing, a facility, function, project, or enterprise on an ongoing basis. See Montana Code 39-8-102
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Professional employer arrangement: means an arrangement by contract or otherwise under which:
(i)a professional employer organization or group assigns employees to perform services for a client;
(ii)the arrangement is or is intended to be ongoing rather than temporary in nature; and
(iii)the employer responsibilities are shared by the professional employer organization or group and the client. See Montana Code 39-8-102
- Professional employer organization: means :
(i)a person that provides services of employees pursuant to one or more professional employer arrangements or to one or more employee leasing arrangements; or
(ii)a person that represents to the public that the person provides services pursuant to a professional employer arrangement. See Montana Code 39-8-102
(2)The insurer of a professional employer organization shall report to the workers’ compensation advisory or rating organization of which the insurer is required to be a member under Title 33, chapter 16, part 10, all data by client, including payroll by classification and liabilities for each client during the term of the policy.
(3)An insurer shall audit policies issued to a professional employer organization within 90 days of the policy effective date and may conduct quarterly audits thereafter. The purpose of the audit is to determine whether all classifications, experience modification factors, and estimated payroll used with respect to the development of the premium charged are appropriate.
(4)All operations of a client, whether or not all or a portion of the client’s operations are subject to a professional employer arrangement or employee leasing arrangement, must be insured by the same insurer.