(1) The department will compute the premium surcharge to be paid by all employers insured by plan No. 2 insurers and by the plan No. 3 insurer in the manner provided by 39-71-201 and 50-71-128, MCA.

(a) In calculating the total administration fund and safety fund assessment premium surcharge rate, the department will use previous calendar year direct premium earned data reported to the department by plan No. 2 insurers and the plan No. 3 insurer.

(b) For the purpose of calculating the surcharge, late payments and remittances will not be considered if received after the new surcharge rate has been calculated. Instead, the payments and remittances will be considered for the purpose of surcharge calculation as if made for the fiscal year in which they were received.

(2) The administration fund and safety fund assessment premium surcharge rate is effective for policies written or renewed on or after July 1 of each year. For policies written or renewed during the fiscal year, the current surcharge rate will apply to all payments made during the policy year regardless of any changes in the surcharge rate effective as of the next fiscal year.

(3) Insurers may address over-collections or overpayments in the following manner:

(a) Any over-collection of the administration fund assessment premium surcharge from a policyholder by the insurer may be refunded by the insurer, or applied to premium or future surcharge payments due from the policyholder to the insurer. An accounting of the payment shall be provided by the insurer to the policyholder.

(b) If a surcharge remittance from an insurer to the department is later determined to include an overpayment, the insurer may deduct the amount overpaid from the next surcharge remittance due from the insurer to the department. The insurer shall maintain records documenting any surcharge amounts refunded to its policyholders.

(4) Each plan No. 2 insurer and the plan No. 3 insurer is responsible for correctly calculating the amount of the authorized premium surcharge for the administration fund and safety fund assessment that the insurer is to collect from each of its insured employers using the rate established by the department. Because the insurer, not the department, calculates the amount of premium due from the employer, disputes between the insurer and the insured regarding the amount of the premium surcharge are not disputes over which the department has jurisdiction.

(5) Each plan No. 2 insurer and the plan No. 3 insurer shall maintain reasonable records showing the total amount of premium surcharge billed for each policyholder and the total amount of premium surcharge actually collected from each policyholder. The department may inspect those records.

(6) All uninsured employers may be assessed a penalty surcharge based on what would have been charged had the employer been enrolled by the plan No. 3 insurer.


History: 39-71-203, 50-71-114, MCA; IMP, 39-71-201, 39-71-203, 39-71-2352, 50-71-128, MCA; NEW, 2000 MAR p. 844, Eff. 3/30/00; AMD, 2004 MAR p. 645, Eff. 3/26/04; AMD, 2012 MAR p. 1666, Eff. 8/24/12; AMD, 2018 MAR p. 2527, Eff. 1/1/19.