Guidance regarding certain workers compensation rate parameters as a result of House Bill 78

State of Idaho DEPARTMENT OF INSURANCE BRAD LITTLE Governor 700 West State Street, 3rd Floor P.O. Box 83720 Boise, Idaho 83720-0043 Phone 208-334-4250 Fax 208-334-4398 Website: https://doi.idaho.gov DEAN L. CAMERON Director Equal Opportunity Employer BULLETIN NO. 21-06 DATE: September 17, 2021 TO: Insurers writing workers compensation insurance in Idaho FROM: Dean L. Cameron, Director SUBJECT: Guidance regarding certain workers compensation rate parameters as a result of House Bill 78 This bulletin to insurers issuing workers compensation policies provides guidance from the Idaho Department of Insurance (the “Department”) concerning rating changes to policies issued or renewed in Idaho on or after January 1, 2022. House Bill 78, signed by Governor Little on March 12, 2021, revised key provisions of Idaho Code § 41-1612 Worker’s Compensation Rates – Adherence to Filings, which becomes effective January 1, 2022. The bill removed mandated minimum premium provisions for policies as well as removing a fixed payroll amount for rating sole proprietors or partners when they have elected coverage. The Department has worked with the National Council of Compensation Insurance (NCCI) to evaluate the impacts of these changes on the workers compensation market in Idaho. From those discussions, the Department has established the following guidance for the NCCI to utilize in their annual filing. Minimum premium The minimum premium is not to exceed $400. Expense constant The expense constant is to be $100 for every policy. This replaces a lower bound on the minimum premium. Payroll to be used when rating sole proprietors and partners who have elected coverage The payroll is to be equal to 50% of the Average Weekly Wage (AWW), as determined by the Idaho Department of Labor. The 2021 AWW for Idaho is $842.00, and the 2022 AWW is not yet released. 2 This Bulletin is not new law but is an agency interpretation of existing law, except as authorized by law or as incorporated into a contract. Requests for additional information or other inquiries regarding this Bulletin can be directed to Deputy Director Wes Trexler at 208- 334-4214 or weston.trexler@doi.idaho.gov.