Vermont Statutes Title 8. Banking and Insurance, § 4687. Workers' compensation and employers' liability insurance; uniform administration of classifications; reporting of rates and other information

(a) Every workers' compensation and employers' liability insurer shall adhere to the uniform classification system and uniform experience rating plan for such categories of insurance which are filed with the Commissioner by the advisory or service organization which has been designated by the Commissioner and remains subject to his or her approval and designation. However, any insurer may develop subclassifications of the uniform classification system upon which a rate may be made; provided, further, that such subclassifications must be filed for the approval of the Commissioner at least 30 working days prior to their use and submitted simultaneously, for information only, to the designated advisory or service organization. The Commissioner shall disapprove any such subclassifications if the insurer fails to demonstrate that the data thereby produced can be reported consistent with the uniform statistical plan and uniform classification system.

(b) The Commissioner shall designate an advisory or service organization to assist him or her in gathering, compiling, and reporting relevant statistical information. Every workers' compensation and employers' liability insurer shall record and report its workers' compensation and employers' liability insurance experience to the designated advisory or service organization as set forth in the uniform statistical plan approved by the Commissioner.

(c) The designated advisory or service organization shall develop and file manual rules, subject to the approval of the Commissioner, reasonably related to the recording and reporting of data pursuant to the uniform statistical plan, uniform experience rating plan, uniform schedule rating plan, and the uniform classification system. Every workers' compensation and employers' liability insurer shall adhere to the approved manual rules and experience rating plan in the underwriting and statistical reporting of its business. No insurer shall agree with any other insurer or with an advisory or service organization to adhere to manual rules which are not reasonably related to the recording and reporting of data pursuant to the uniform classification system, uniform experience rating plan, uniform schedule rating plan, or the uniform statistical plan.

(d) Filings submitted pursuant to this section shall be filed with the Commissioner at least 30 working days before the proposed effective date of the filing. The Commissioner may give written notice, within 30 working days after the receipt of the filing, that the Commissioner needs additional time, not to exceed 30 days from the date of such notice, to consider the filing. Upon written application of the designated advisory or service organization, the Commissioner may authorize the filing to be effective before the expiration of the waiting period or any extension of the waiting period. A filing shall be deemed to meet the requirements of this section, unless disapproved by the Commissioner before the expiration of the waiting period or any extension of the waiting period.

(e) The uniform experience rating plan to be filed pursuant to this section shall contain reasonable eligibility standards, provide adequate incentives for loss prevention, and provide for sufficient premium differentials so as to encourage safety. The uniform experience rating plan shall be the exclusive means of providing prospective premium adjustment based upon measurement of the loss producing characteristics of an individual insured, but insurers may file rating plans that provide for retrospective premium adjustments based upon an insured's past experience.