HB 0724

HB 724 - AS INTRODUCED

AN ACT relative to pooled risk management programs for public employers.

SPONSORS: Rep. Wheeler, Hills 7; Rep. Anderson, Merr 7

This bill establishes standards of operation for workers' compensation pooled risk management programs for public employers.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to pooled risk management programs for public employers.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Pooled Risk Management Programs; Exception Added. Amend the introductory paragraph of RSA 5-B:5, I to read as follows:

I. Each pooled risk management program, except those public employer workers' compensation programs which are regulated by and which report to the department of labor under RSA 281-A:5-f, shall meet the following standards of organization and operation. Each program shall:

2 New Section; Standards of Organization and Operation for Workers' Compensation Pooled Risk Management Programs for Public Employers. Amend RSA 281-A by inserting after section 5-e the following new section:

281-A:5-f Standards of Organization and Operation for Workers' Compensation Pooled Risk Management Programs for Public Employers.

I. Each public employer pooled risk management program providing coverage for workers' compensation shall:

(b) Be governed by a board of directors, the majority of which is composed of elected or appointed public officials, officers, or employees of the participating public employers.

(c) Return all earnings and surplus in excess of any amounts required for administration, claims, reserves, and purchases of excess insurance to the participating public employers within 90 days of the completion of the review and approval by the department of labor of the annual actuarial evaluation.

(d) Provide for an annual audit of financial transactions by an independent certified public accountant. The audit shall be filed with the department of labor and distributed to all participating public employers.

(e) Be governed by written bylaws which shall detail the terms of eligibility for participation by public employers, the governance of the program, and other matters necessary to the program's operation. Bylaws and any subsequent amendments, lists of directors and changes thereto, and annual reports shall be filed with the department of labor.

(f) Provide for an annual actuarial evaluation of the pooled risk management program. The evaluation shall assess the adequacy of contributions required to fund the workers' compensation program and the reserves necessary to be maintained to meet expenses of all incurred and incurred but not reported claims and other projected needs of the program. The annual actuarial evaluation shall be performed by a member of the American Academy of Actuaries qualified in the coverage area of workers' compensation and shall be filed with the department of labor and distributed to all participating public employers.

II. The commissioner of labor or the commissioner's designated representatives shall have the duty and obligation to enforce the provisions of this section. Orders of the commissioner shall, if necessary, be enforced by the superior court. If a program fails to provide for an annual audit or an annual actuarial evaluation, the commissioner or the commissioner's designated representatives shall cause same to be performed and shall be reimbursed the cost thereof by the program.