WORKERS' COMP. ASSESSMENTS - S.B. 718 (S-1): FLOOR ANALYSIS
Senate Bill 718 (Substitute S-1 as reported by the Committee of the Whole)
Sponsor: Senator Bill Bullard, Jr.
Committee: Financial Services
CONTENT
The bill would amend the Worker's Disability Compensation Act to revise the formula for determining the allocation of assessments against carriers (including self-insurers) for the Second Injury Fund and the Silicosis, Dust Disease, and Logging Industry Compensation Fund. Under the proposed formula, an individual insurer's assessment would be based on premiums written, instead of benefits paid. The bill would take effect on January 1, 2002.
Under the Act, the Director of the Bureau of Worker's Disability Compensation collects from carriers 175% of the total disbursements made from each Fund the preceding calendar year, less the amount of net assets in excess of $200,000. Each carrier's assessment is based on its proportionate share of total benefits paid by all carriers. The bill would retain the total assessment based on 175% of disbursements in the preceding year, but would establish the following formulas for calculating the portion allocated between all self-insurers and all insurers, and amount collected from each self-insurer and each insurer:
| Self-Insurers | Insurers | |
| Allocation | total paid losses of all
self-insurers
total paid losses of all carriers |
total paid losses of all insurers total paid losses of all carriers |
| Collection | total paid losses of each
self-insurer
total paid losses of all self-insurers |
total direct premiums
written as reported by
each insurer
total direct premiums written as reported by all insurers |
("Total paid losses" would mean total compensation benefits paid under the Act, with certain exclusions. "Direct premiums written" would refer to workers' compensation premiums written in Michigan plus reimbursements from insurers on large deductible policies.)
MCL 418.551 - Legislative Analyst: S. Lowe
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 11-7-01 - Fiscal Analyst: M. Tyszkiewicz
floor\sb718 - Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.