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SENATE BILL NO. 223
INTRODUCED BY G. ROUSH
A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING THE DEPARTMENT OF LABOR AND INDUSTRY TO CERTIFY TRADE GROUPS THAT WISH TO IMPROVE WORKPLACE SAFETY AND PURCHASE GROUP INSURANCE; AMENDING SECTION 39-71-433, MCA; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 39-71-433, MCA, is amended to read:
"39-71-433. Group purchase of workers' compensation insurance. (1)
Two On receiving approval of the
department, two or more business entities may join together to form a group to improve workplace safety and purchase
individual workers' compensation insurance policies covering each member of the group.
(2) To be eligible to join a new group that is forming, the department shall determine that a business entity is engaged in a business pursuit that is the same as or is similar to the business pursuits of the other entities participating in the group.
(3) The department shall establish a certification program for groups organized under this section and shall issue to eligible business entities certificates of approval that authorize formation and maintenance of a group.
(4) To be eligible for group premium discounts, each group certified under this section shall provide to the department evidence of an effective and comprehensive workplace safety program conducted by the group and provided to each member of the group.
(5) The department by rule shall adopt forms, criteria, and procedures for the issuance of certificates of approval to groups under this section.
(6) A group certified under this section may add additional members without approval from the department if the additional members meet the specific criteria identified in the original application and any modifications to the criteria, as approved by the department.
(2)(7) A group formed certified under this section may purchase individual workers' compensation insurance policies
covering each member of the group from any insurer authorized to write workers' compensation insurance in this state,
except that the state fund, as defined in 39-71-2312, has the right to refuse coverage of a group and its plan of operation but
may not refuse coverage to an individual employer. Under an individual policy, the group is entitled to a premium or
volume discount that would be applicable to a policy of the combined premium amount of the individual policies. (3)(8) A group shall apportion any discount or policyholder dividend received on workers' compensation insurance
coverage among the members of the group according to a formula adopted in the plan of operation for the group. (4)(9) A group shall adopt a plan of operation that must include the composition and selection of a governing board, the
methods for administering the group, the eligibility requirements to join the group, the workplace safety program required
by this section, and guidelines for the workers' compensation insurance coverage obtained by the group, including the
payment of premiums, the distribution of discounts, and the method for providing risk management. A group shall file a
copy of its safety program and plan of operation with the department."
NEW SECTION. Section 2. Effective date. [This act] is effective July 1, 1999.
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Latest Version of SB 223 (SB0223.01)
Processed for the Web on January 18, 1999 (6:46PM)
New language in a bill appears underlined, deleted material appears stricken.
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Status of this Bill| 1999 Session | Leg. Branch Home
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