AN ACT RELATIVE TO INSURANCE ASSESSMENTS.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. The fifth paragraph of section 8E of chapter 26 of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following 2 sentences:- The commissioner may make an assessment against any corporation, unincorporated association, partnership, or individual licensed as a rating organization pursuant to section 52C of chapter 152 and against any company authorized to write workers' compensation insurance that is not a member of any rating organization licensed pursuant to said section 52C to pay for the rating bureau's expenses as they relate to workers' compensation. The assessment shall be apportioned on the basis of the direct written premium of each insurance company in the most recent calendar year.
SECTION 2. Said fifth paragraph of said section 8E of said chapter 26, as so appearing, is hereby further amended by striking out the tenth sentence and inserting in place thereof the following 2 sentences:-
Any rating organization licensed pursuant to section 52C of chapter 152 and any company authorized to write workers' compensation insurance that is not a member of any rating organization licensed pursuant to said section 52C shall pay the amount assessed within 30 days after the date of the notice of assessment from the commissioner. The assessment shall be apportioned on the basis of the direct written premium of each insurance company in the most recent calendar year.
SECTION 3. Section 63 of chapter 152 of the General Laws, as so appearing, is hereby amended by adding the following sentence:- The organization may charge companies for the reasonable cost of gathering, processing and maintaining the data.
SECTION 4. Section 3 of chapter 399 of the acts of 1991, as amended by section 210 of chapter 38 of the acts of 1995, is hereby further amended by striking out the first paragraph and inserting in place thereof the following paragraph:-
Section 3. The commissioner of insurance shall make an annual assessment in the amount of $285,882 to be paid each year by the members of the Automobile Insurers Bureau, or its successor rating organization licensed under section 8 of chapter 175A of the General Laws and the companies authorized to write private or commercial automobile insurance that are not members of the licensed rating organization apportioned on the basis of the direct written premium of each insurance company in the most recent calendar year and also to make an annual assessment in the amount of $285,882 to be paid each year by the members of the Workers' Compensation Rating and Inspection Bureau or its successor rating organization licensed under section 52C of chapter 152 of the General Laws, and the companies authorized to write workers' compensation insurance that are not members of the licensed rating organization, apportioned on the basis of the direct written premium of each insurance company in the most recent calendar year.
SECTION 5. Section 13 of chapter 427 of the acts of 1996 is hereby amended by striking out paragraph (c) and inserting in place thereof the following paragraph:-
(c) The executive director shall appoint other employees of the insurance fraud bureau as necessary. The executive director may expend for legal, investigative, clerical and any other expenses in sums as are necessary. The executive director shall also disseminate the provisions of this act by publishing informational brochures and other materials which encourage the public to report workers' compensation fraud and shall maintain a toll free number to receive the reports. All costs of administration and operation of the insurance fraud bureau shall be paid as follows: one-half by the members of the Automobile Insurers Bureau, or its successor rating organization licensed under section 8 of chapter 175A of the General Laws and the companies authorized to write private or commercial automobile insurance that are not members of the licensed rating organization, apportioned on the basis of the direct written premium of each company in the most recent calendar year; and one-half by the members of the Workers' Compensation Rating and Inspection Bureau, or its successor organization licensed under section 52C of chapter 152 of the General Laws, and the companies authorized to write workers' compensation insurance that are not members of the licensed rating organization, apportioned on the basis of the direct written premium of each company in the most recent calendar year. The executive director shall determine the estimated costs for the operation of the insurance fraud bureau and upon approval by the bureau shall assess the licensed rating organizations and the other nonmember companies in accordance with this section. The estimated costs shall be paid to the executive director and he shall subsequently make adjustments to future assessments for any variation between estimated and actual costs on a fair and reasonable basis.