Effective - 28 Aug 2021, 4 histories
287.715. Annual surcharge required for second injury fund, amount, how computed, collection — violation, penalty — supplemental surcharge, amount. — 1. For the purpose of providing for revenue for the second injury fund, every authorized self-insurer, and every workers' compensation policyholder insured pursuant to the provisions of this chapter, shall be liable for payment of an annual surcharge in accordance with the provisions of this section. The annual surcharge imposed under this section shall apply to all workers' compensation insurance policies and self-insurance coverages which are written or renewed on or after April 26, 1988, including the state of Missouri, including any of its departments, divisions, agencies, commissions, and boards or any political subdivisions of the state who self-insure or hold themselves out to be any part self-insured. Notwithstanding any law to the contrary, the surcharge imposed pursuant to this section shall not apply to any reinsurance or retrocessional transaction.
2. Beginning October 31, 2005, and each year thereafter, the director of the division of workers' compensation shall estimate the amount of benefits payable from the second injury fund during the following calendar year and shall calculate the total amount of the annual surcharge to be imposed during the following calendar year upon all workers' compensation policyholders and authorized self-insurers. The amount of the annual surcharge percentage to be imposed upon each policyholder and self-insured for the following calendar year commencing with the calendar year beginning on January 1, 2006, shall be set at and calculated against a percentage, not to exceed three percent, of the policyholder's or self-insured's workers' compensation net deposits, net premiums, or net assessments for the previous policy year, rounded up to the nearest one-half of a percentage point, that shall generate, as nearly as possible, one hundred ten percent of the moneys to be paid from the second injury fund in the following calendar year, less any moneys contained in the fund at the end of the previous calendar year. All policyholders and self-insurers shall be notified by the division of workers' compensation within ten calendar days of the determination of the surcharge percent to be imposed for, and paid in, the following calendar year. The net premium equivalent for individual self-insured employers shall be based on average rate classifications calculated by the department of commerce and insurance as taken from premium rates filed by the twenty insurance companies providing the greatest volume of workers' compensation insurance coverage in this state. For employers qualified to self-insure their liability pursuant to this chapter, the rates filed by such group of employers in accordance with subsection 4 of section 287.280 shall be the net premium equivalent. Any group of political subdivisions of this state qualified to self-insure their liability pursuant to this chapter as authorized by section 537.620 may choose either the average rate classification method or the filed rate method, provided that the method used may only be changed once without receiving the consent of the director of the division of workers' compensation. The director may advance funds from the workers' compensation fund to the second injury fund if surcharge collections prove to be insufficient. Any funds advanced from the workers' compensation fund to the second injury fund must be reimbursed by the second injury fund no later than December thirty-first of the year following the advance. The surcharge shall be collected from policyholders by each insurer at the same time and in the same manner that the premium is collected, but no insurer or its agent shall be entitled to any portion of the surcharge as a fee or commission for its collection. The surcharge is not subject to any taxes, licenses or fees.
3. All surcharge amounts imposed by this section shall be deposited to the credit of the second injury fund.
4. Such surcharge amounts shall be paid quarterly by insurers and self-insurers, and insurers shall pay the amounts not later than the thirtieth day of the month following the end of the quarter in which the amount is received from policyholders. If the director of the division of workers' compensation fails to calculate the surcharge by the thirty-first day of October of any year for the following year, any increase in the surcharge ultimately set by the director shall not be effective for any calendar quarter beginning less than sixty days from the date the director makes such determination.
5. If a policyholder or self-insured fails to make payment of the surcharge or an insurer fails to make timely transfer to the division of surcharges actually collected from policyholders, as required by this section, a penalty of one-half of one percent of the surcharge unpaid, or untransferred, shall be assessed against the liable policyholder, self-insured or insurer. Penalties assessed under this subsection shall be collected in a civil action by a summary proceeding brought by the director of the division of workers' compensation.
*6. Notwithstanding subsection 2 of this section to the contrary, the director of the division of workers' compensation shall collect a supplemental surcharge not to exceed three percent for calendar years 2014 to 2022 of the policyholder's or self-insured's workers' compensation net deposits, net premiums, or net assessments for the previous policy year, rounded up to the nearest one-half of a percentage point. For calendar year 2023, the director of the division of workers' compensation shall collect a supplemental surcharge not to exceed two and one-half percent of the policyholder's or self-insured's workers' compensation net deposits, net premiums, or net assessments for the previous policy year, rounded up to the nearest one-half of a percentage point. All policyholders and self-insurers shall be notified by the division of the supplemental surcharge percentage to be imposed for such period of time as part of the notice provided in subsection 2 of this section. The provisions of this subsection shall expire on December 31, 2023.
7. Funds collected under the provisions of this chapter shall be the sole funding source of the second injury fund.
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(L. 1959 S.B. 167 § 287.695, A.L. 1971 H.B. 321, A.L. 1982 S.B. 470, A.L. 1986 S.B. 545, A.L. 1988 H.B. 1244, A.L. 1993 S.B. 251, A.L. 2005 S.B. 1 & 130, A.L. 2013 S.B. 1, A.L. 2018 S.B. 981, A.L. 2021 H.B. 604 merged with S.B. 303)
*Subsection 6 expires 12-31-23
Structure Missouri Revised Statutes
Title XVIII - Labor and Industrial Relations
Chapter 287 - Workers' Compensation Law
Section 287.010 - Citation of law.
Section 287.020 - Definitions — intent to abrogate earlier case law.
Section 287.030 - Employer defined.
Section 287.040 - Liability of employer — contractors, subcontractors.
Section 287.041 - For-hire motor carrier not an employer of a lessor — definition.
Section 287.043 - Abrogation of case law regarding definition of owner.
Section 287.060 - Employers and employees affected by this act.
Section 287.100 - Legislative intent relative to other laws expressed.
Section 287.110 - Scope of chapter as to injuries and diseases covered.
Section 287.130 - Employer's liability joint and several — contribution allowable.
Section 287.143 - Vocational rehabilitation services, not mandatory — testing and assessment.
Section 287.144 - Definitions.
Section 287.145 - Rehabilitation practitioners, providers, certification of, how.
Section 287.149 - Benefits to be paid, when — reduction of benefits, when.
Section 287.180 - Temporary partial disability, amount to be paid — method of payment.
Section 287.195 - Claims for hernia, proof required.
Section 287.241 - Death benefits, inconsistent with section 287.240, when.
Section 287.253 - Monetary bonus, effect on benefits.
Section 287.260 - Compensation to have priority — not assignable — exceptions.
Section 287.282 - Employee leasing arrangements, coverage required.
Section 287.290 - Employee not to pay cost of insurance.
Section 287.300 - Employer's liability primary or secondary — notice and service, when sufficient.
Section 287.310 - Policies to be approved by department — deductible plans authorized, requirements.
Section 287.340 - Insurance companies must keep reserve.
Section 287.350 - Insurance companies to make report.
Section 287.360 - Director may suspend or revoke permits and ask for a receiver.
Section 287.370 - Compensation in lieu of insurance, how provided.
Section 287.400 - Accident — duty of division — employer.
Section 287.410 - Powers and functions of the division of workers' compensation.
Section 287.420 - Written notice of injury to be given to employer — exceptions.
Section 287.430 - Limitation as to action, exception.
Section 287.440 - Limitation begins to run, when.
Section 287.450 - Failure to agree on compensation — division to hold hearings.
Section 287.470 - Commission may review and change award.
Section 287.480 - Application for review, time limit — when deemed filed — bond required, when.
Section 287.500 - Circuit court may act upon memorandum — procedure.
Section 287.510 - Temporary or partial awards may be made.
Section 287.520 - Notice — manner of serving.
Section 287.530 - Commission or division may commute compensation, when and how.
Section 287.540 - Compensation commuted — funds, how paid out.
Section 287.550 - Proceedings before commission to be informal and summary.
Section 287.570 - Contempt — penalty.
Section 287.580 - Death, pending proceedings — action shall not abate.
Section 287.590 - Division may be sued — official seal.
Section 287.600 - Oath of office.
Section 287.615 - Employees of division — compensation — selection.
Section 287.620 - Attorney general legal adviser.
Section 287.630 - Forms, other material furnished by commission and division.
Section 287.642 - Public information programs, division to establish.
Section 287.650 - Division to make rules and regulations — power to destroy reports, when — rules.
Section 287.655 - Dismissal of claims, when, how, effect.
Section 287.670 - No fees for services of public officers.
Section 287.680 - Annual report to governor.
Section 287.700 - Returns delinquent — duty of director.
Section 287.710 - Tax returns — payments — use of proceeds — funds and interest not to lapse.
Section 287.713 - Director, report of expenditures.
Section 287.717 - Surcharge collection, procedure — failure to pay, interest assessed, when.
Section 287.730 - Employer carrying own risk must pay tax.
Section 287.740 - Compliance with provisions obligatory — penalty for violation.
Section 287.745 - Delinquent taxes, interest, rate — overpayment of taxes, credit.
Section 287.750 - Sufficiency of notice.
Section 287.760 - Insurance carriers exempt from other tax, when.
Section 287.790 - Penalty not specifically provided — misdemeanor.
Section 287.800 - Law to be strictly construed.
Section 287.801 - Review of claims, by whom.
Section 287.804 - Waiver of compensation by employee, procedure.
Section 287.808 - Burden of proof.
Section 287.810 - Change of administrative law judge, procedure, limitations.
Section 287.811 - Discovery in workers' compensation cases, sections not to effect.
Section 287.812 - Definitions.
Section 287.815 - Retirement, age and service qualifications.
Section 287.825 - Death of member before or after retirement — benefits of beneficiaries.
Section 287.830 - Retirement with less than twelve years service — benefits.
Section 287.840 - Practice of law after retirement — restrictions.
Section 287.845 - Administration of retirement system and funds.
Section 287.850 - Life insurance benefits.
Section 287.855 - Disability benefits.
Section 287.867 - Insolvency fund, created — purposes, audit of.
Section 287.872 - Powers and duties of division.
Section 287.877 - Insolvent member, board may determine, how — notice to division, when.
Section 287.880 - Liability, limitation of.
Section 287.882 - Automatic stay of proceedings, when, duration.
Section 287.885 - Limitations on actions.
Section 287.886 - Severability clause.
Section 287.892 - Workers' compensation insurers to report cost data to department.
Section 287.900 - Citation of law — definitions.
Section 287.902 - Missouri employers mutual insurance company, created, powers, purpose.
Section 287.905 - Board, created — members, appointment, qualifications, terms — chairman.
Section 287.910 - Rates, board to determine, how.
Section 287.912 - Investment policy, board to determine — administrator to make investments, how.
Section 287.915 - Agents may sell policies, commissions.
Section 287.930 - Definitions.
Section 287.932 - Act not applicable, when — unfair trade practices, when.
Section 287.945 - Director to monitor degree of competition, purpose.
Section 287.952 - Rate standards in noncompetitive market, factors.
Section 287.957 - Experience rating plan, contents.
Section 287.960 - Disapproval of rate, when, how — procedures, director's powers — effect.
Section 287.970 - Advisory organization not to file rates on behalf of insurer, exception.