HOUSE BILL No. 2263
An Act concerning group funded workers compensation pools;
relating to refunds
therefrom; amending K.S.A. 44-585 and repealing the
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 44-585 is hereby
amended to read as follows: 44-
585. (a) Premium contributions to the pool shall be based upon
priate manual classification and rates, plus or minus applicable
credits or debits, and minus any advance discount approved by the
tees, not to exceed 15% of manual premium. The pool must use
classifications and rates as promulgated by an approved rating
tion and must report premium and loss data to a rating
rates shall either be the rates effective June 1, 1994, or the
loss costs, as defined in K.S.A.
40-955, and amendments thereto,
plus expenses necessary to administer the pool. For purposes of
tion (b) the prospective loss costs shall be presumed to be the 70%
quired to be deposited in the claims fund. If the pool has been in
ation for more than five years, the board of trustees may determine
rates as approved by the commissioner.
(b) At least 70% of the annual premium
shall be placed into a des-
ignated depository for the sole purpose of paying claims. If so
by the commissioner of insurance, the annual premium to be
to such depository may be determined to be the net amount of
after all or a portion of the specific and aggregate excess
mium costs have been paid. This shall be called the claims fund
The remaining annual premium shall be placed into a designated
itory for the payment of taxes, fees and administrative costs. This
called the administrative fund account. If a pool has been in
for more than five years, the commissioner may authorize allocation
different amount to the claims fund account, if solvency of the
not be endangered.
Any surplus moneys for a fund
year in excess of the amount nec-
essary to fulfill all obligations under the workers
compensation act for
that fund year may be declared to be refundable by the
trustees not less
than 12 months after the end of the fund year, upon the
approval of the
commissioner. Such approval can be obtained only upon
idence that sufficient funds remain on deposit for the
payment of all
outstanding claims and expenses, including incurred but not
claims. At the end of a fund year or any time
thereafter, the trustees may
declare a refund of any surplus moneys for the fund year in
excess of the
amount necessary to fulfill all obligations under the workers
act for that fund year. Such refund shall not be distributed, in
in part, less than 12 months after the end of the fund year for
refund was declared. After receipt from the pool of the notice
refund and satisfactory evidence that sufficient funds remain on
for the payment of all outstanding claims and expenses,
but not reported claims, the commissioner shall approve
the declared refund. Any such refund shall be paid only to
ers who remained participants in the pool for an entire year.
previously earned refunds shall not be contingent on continued
bership in the pool.
Sec. 2. K.S.A. 44-585 is hereby repealed.
Sec. 3. This act shall take effect and be in force
from and after its
publication in the statute book.
Approved April 3, 2001.