(A) For the purpose of uniformity and equality the director or his designee shall approve a system of merit rating for use in the writing of workers' compensation insurance. No system of merit rating except the one so approved may be used.
(B) This system of merit rating shall include a credit of at least five percent for an insured who participates in a program designed to prevent the use of drugs or alcoholic beverages on the job by employees of the insured. The credit must be actuarially sound and filed with the director or his designee. However, if the director determines that a credit of at least five percent is not actuarially sound, the director shall allow and order a credit of less than five percent which is actuarially sound. The director or his designee shall provide for certification of an employer drug prevention program and shall promulgate regulations for the implementation of this subsection including, but not limited to, the establishment of guidelines or a plan defining a qualified employer drug prevention program eligible for the credit which shall be used by the insurer unless the insurer has established its own guidelines or plan. In the establishment of guidelines or a plan by the director or insurer concerning a qualified drug prevention program eligible for the credit, the guidelines or plan shall include the policy statement and employee notification requirement pursuant to Section 41-1-15.
(C) The testing procedure established by the insurer, employer, or his designee, or, approved by the director, must include a provision for random sampling of all persons who receive wages and compensation in any form from the employer. If a second test is administered, the testing procedure may allow for a single sample to be split for use in the first and second tests. Positive test results must be provided in writing to the employee within twenty-four hours of the time the employer receives the test results. Each employer must keep records of each test for up to one year.
HISTORY: Former 1976 Code Section 42-5-100 [1936 (39) 1231; 1937 (40) 613; 1942 Code Section 7035-76; 1952 Code Section 72-410; 1960 (51) 1646; 1962 Code Section 72-410] recodified as Section 38-73-500 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783; 1997 Act No. 92, Section 1; 2014 Act No. 197 (S.826), Section 1, eff June 2, 2014.
Effect of Amendment
2014 Act No. 197, Section 1, in subsection (C), substituted "If a second test is administered, the testing procedure may allow for a single sample to be split for use in the first and second tests" for "and must provide for a second test to be administered within thirty minutes of the administration of the first test".
Structure South Carolina Code of Laws
Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations
Section 38-73-10. Declaration of purpose; construction.
Section 38-73-20. Scope of chapter.
Section 38-73-30. Insurance subject to dual regulation.
Section 38-73-40. Recording and reporting of loss and expense experience.
Section 38-73-50. Interchange of rating plan data.
Section 38-73-60. Consultation with other states.
Section 38-73-70. Regulations.
Section 38-73-80. Withholding or giving false or misleading information.
Section 38-73-90. Examinations of rating organizations, advisory groups, and other organizations.
Section 38-73-110. Suspension of license.
Section 38-73-120. Hearing as prerequisite to imposition of penalty or suspension of license.
Section 38-73-130. Hearing procedure; judicial review.
Section 38-73-210. Article title and application.
Section 38-73-220. Approval process for rate level changes.
Section 38-73-250. Rate filings where line declared noncompetitive.
Section 38-73-270. Consumer information system.
Section 38-73-310. Scope of article.
Section 38-73-320. Insurance subject to both this article and Article 5.
Section 38-73-325. Absence of credit information.
Section 38-73-330. Making of rates.
Section 38-73-340. Rate filings required.
Section 38-73-410. Scope of article.
Section 38-73-420. Insurance subject to both this article and Article 3.
Section 38-73-425. Absence of credit information.
Section 38-73-430. Making of rates.
Section 38-73-440. Certain factors may not be considered in determining automobile insurance rates.
Section 38-73-470. Disposition of uninsured motorist premium.
Section 38-73-480. Rate for group automobile insurance.
Section 38-73-490. Workers' compensation rates.
Section 38-73-500. Merit rating for workers' compensation insurance; credit; testing.
Section 38-73-505. Reductions in premiums.
Section 38-73-510. Nonpartisan rating bureau for workers' compensation.
Section 38-73-515. Deductibles.
Section 38-73-520. Rate filings required.
Section 38-73-525. Filing of multiplier for expenses by insurers writing workers' compensation.
Section 38-73-526. Report as to availability and affordability of workers' compensation coverage.
Section 38-73-530. Competitive rate on specific risk.
Section 38-73-540. Assigned risk.
Section 38-73-545. Applicability to self-insurers.
Section 38-73-710. State Rating and Statistical Division established; executive director.
Section 38-73-737. Rate reductions for youthful operator completing approved driver training course.
Section 38-73-740. Certain information must be retained; inspection by applicant.
Section 38-73-905. Prior approval not required for certain rate changes.
Section 38-73-920. No insurance may be issued except on rates filed.
Section 38-73-930. Guidelines and formats for filing.
Section 38-73-935. Rate filings; information based upon; exceptions.
Section 38-73-940. Information in support of filing.
Section 38-73-950. Additional information may be required.
Section 38-73-960. Effective date of filing.
Section 38-73-965. Filing; effective date.
Section 38-73-970. Effective date for specially rated inland marine rates.
Section 38-73-980. Effective date for certain surety or guaranty bonds.
Section 38-73-990. Disapproval of filings generally.
Section 38-73-1000. Disapproval of specially rated specific inland marine rates.
Section 38-73-1010. Disapproval of special surety or guaranty filings.
Section 38-73-1020. Disapproval after applicable review period.
Section 38-73-1030. Review of filings on application of person aggrieved.
Section 38-73-1040. No disapproval of certain fire, allied lines, or inland marine filings.
Section 38-73-1050. No disapproval of certain casualty or automobile filings.
Section 38-73-1060. Use of rates and policy forms different from those filed; exceptions.
Section 38-73-1070. Suspension or modification of filing requirement.
Section 38-73-1080. Information to be furnished insureds; hearings and appeals of insureds.
Section 38-73-1085. Publication of representative sample of premiums.
Section 38-73-1090. Determination of discrimination and removal.
Section 38-73-1095. Essential property insurance; rating plan factors.
Section 38-73-1097. Applicability of certain provisions.
Section 38-73-1100. Determination of excessive or unreasonable rates; general reduction; refund.
Section 38-73-1105. Insurer's use of definition of "underinsured motor vehicle".
Section 38-73-1110. Regulation of calculation and refunding of excess profit.
Section 38-73-1120. Provisions to ensure expenses are allocated and treated properly; penalty.
Section 38-73-1215. Applicability to self-insurers.
Section 38-73-1220. Application for license as rating organization.
Section 38-73-1230. Issuance or denial of license; duration; fee.
Section 38-73-1240. Suspension or revocation of license.
Section 38-73-1250. Changes within rating organization.
Section 38-73-1260. Subscribers to rating organizations.
Section 38-73-1270. Changes in rules and regulations; review of reasonableness.
Section 38-73-1280. Rules may not regulate certain payments.
Section 38-73-1290. Filings must be adhered to.
Section 38-73-1300. Application for modification by fire or inland marine insurer.
Section 38-73-1310. Application for modification by casualty or automobile insurer.
Section 38-73-1330. Examination of policies and other papers; correction of errors.
Section 38-73-1340. Appeal by minority.
Section 38-73-1350. Cooperation.
Section 38-73-1360. Actuarial, technical, and other services.
Section 38-73-1410. Refiling of final rates or premium charges previously approved not required.
Section 38-73-1510. "Advisory organization" defined.
Section 38-73-1520. Filing certain data and agreement authorizing examination.
Section 38-73-1530. Requiring discontinuance of certain acts or practices.
Section 38-73-1710. Regulation of joint underwriting and joint reinsurance.
Section 38-73-1720. Discontinuance of unfair activity or practice may be ordered.