2020 Analysis of Workers' Compensation Laws - 128

Chart XIV-Administration Expenses: Workers' Compensation Departments

Jurisdiction

 
System Provided For

 
Fund or
Appropriation

Assessment Provisions
Against Whom

Amount

 
Other Income

Alabama

Private insurance, selfinsurance

Administrative fund

Insurance carriers, selfinsurers, and group selfinsurance funds

$250 plus amount based on proportion
of total gross claims for compensation
and medical payments paid by carrier,
self-insured employer, or group fund during
preceding calendar year to total gross
claims for compensation and medical
payments paid by all carriers, self-insured
employers, and group funds during that
period.

 

Alaska

Private insurance or
approved self-insurance,
and uninsured employers

Administrative fund

Insurers, self-insured, and
uninsured employers

Insurers-2.5% of direct premium income
less statutory exclusions. Self-insured
and uninsured employers-2.9% of all
payments. Less payments to Second Injury
Fund.

 

Arizona

Private insurance

Administrative fund

Carriers and self-insurers

Not to exceed 3% of premiums.

 

Arkansas

Private insurance

Special fund

Carriers, self-insurers, state
agencies, and state colleges
and universities

Up to 3% of written manual premiums.

Certificates of
noncoverage fines,
penalties, and copying
fees

California

Competitive fund1

Assessment

All employers

Annually adjusted percentage of premium

Fines and penalties

Colorado

Competitive fund, private
insurance, approved selfinsurance

Four funds-the Workers'
Compensation Cash
Fund; the Premium Cost
Containment Fund; and the
Subsequent Injury Fund
(SIF) and Major Medical
Insurance Funds; Colorado
Uninsured Employer Fund

Carriers and self-insurers

The Workers' Compensation Cash Fund is
paid by carriers and self-insured at 1.35% of
premiums per CRS 8-44-112; the Premium
Cost Containment Fund is paid by carriers
only at 0% per CRS 8-44-112(7); the SIF and
Major Med Fund are paid by carriers and
self-insureds at .01% per CRS 8-46-102,
effective 7/1/20.

None 

Connecticut Private insurance

Special funds, major
medical and cash fund, and
premium cost containment
fund

Carriers and self-insurers

Pro rata assessment necessary to cover
expenses.

 

Delaware

Private insurance

General appropriation

Carriers

Prorated

 

District of
Columbia2

Private insurance, selfinsurance

Administrative fund

Carriers and self-insurers

Prorated on basis of total compensation and
medical payments.

 

Florida

Competitive funds, private
insurance, and selfinsurers.

Administration fund

Carriers, self-insurers, and self- 1.25% of net collected (gross collected
insured funds
premiums less statutory offsets), plus the
additional premiums that would have been
collected except for the premium discount
applied on account of the deductible clause,
if any, of all policies issued by the company.

 

Georgia

Private insurance, selfinsurance

Assessment against
insurance carriers and
self-insured companies
precedes general
appropriation.

Carriers and self-insurers

Prorated

 

Hawaii

Private insurance

General appropriation

 

 

 

Idaho

Competitive fund, private
insurance, approved
individual self-insurance

Dedicated fund
appropriation: Industrial
Administration Fund

Carriers, self-insurers, and
competitive funds

2% tax on written premium 

Fines and penalties on
uninsured employers 

Illinois

Private insurance, approved
self-insurance

Special fund

Carriers and self-insurers

Insureds pay 1.01% of insurance premium;
self-insureds pay 0.0075% of annual wages.

Fines, penalties, and
fees for copies and
publications

Indiana

Private insurance, approved
self-insurance

General appropriation

 

 

 

Iowa

Private insurance

General appropriation

 

 

 

Kansas

Private insurance, selfinsurance, group pools

Special fund

Private insurers, self-insurers,
and approved group-rated
pools

Up to 3% of paid losses

 

128 | 2020 Analysis of Workers' Compensation Laws
2020 Analysis of Workers' Compensation Laws

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