BEFORE THE STATE COMPENSATION INSURANCE FUND
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 2.55.502 pertaining to the individual loss sensitive dividend distribution plan
NOTICE OF PROPOSED AMENDMENT
NO PUBLIC HEARING CONTEMPLATED
TO: All Concerned Persons
1. On May 13, 2016, the Montana State Fund proposes to amend the above-stated rule.
2. The Montana State Fund will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Montana State Fund no later than 5:00 p.m. on April 29, 2016, to advise us of the nature of the accommodation that you need. Please contact Curtis Larsen, Montana State Fund, P.O. Box 4759, 855 Front Street, Helena, Montana, 59604-4759; telephone (406) 495-5255; fax (406) 495-5023; or e-mail firstname.lastname@example.org.
3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:
2.55.502 INDIVIDUAL LOSS SENSITIVE DIVIDEND DISTRIBUTION PLAN (1) through (5) remain the same.
(6) Individual retrospectively rated policies that have not reached a final premium determination as of the dividend valuation date and optional deductible policies s
hall are not be eligible for a dividend declared by the board under this rule. This section applies to policies with policy effective dates after December 31, 2006 before July 1, 2016.
(7) through (9) remain the same.
AUTH: 39-71-2315, 39-71-2323, MCA
IMP: 39-71-2323, MCA
REASON: When the Montana State Fund general dividend process was first implemented, retrospectively rated policies typically did not reach a final determination of premium by the date losses and premiums were valued for purposes of the general dividend. The timing of the dividend process has changed such that retrospectively rated policies are now generally finalized by the dividend valuation date established by the board of directors. Since the dividend is a fixed amount and is declared by the State Fund board of directors based on State Fund's capital adequacy, it is now appropriate to allow retrospectively rated policies to participate in the general dividend as long as a final determination of the premium for the retrospectively rated policy has been made.
4. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to Curtis Larsen, Montana State Fund, P.O. Box 4759, 855 Front Street, Helena, Montana 59604-4759; telephone (406) 495-5255; fax (406) 495-5023, or e-mail email@example.com. Any comments must be received no later than 5:00 p.m., May 6, 2016.
5. If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Curtis Larsen at the above address no later than 5:00 p.m., May 6, 2016.
6. If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those directly affected has been determined to be 2600 persons based on 26,000 policyholders.
7. The Montana State Fund maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to Curtis Larsen, Montana State Fund, P.O. Box 4759, 855 Front Street, Helena, Montana 59604-4759; faxed to the office at (406) 495-5023, e-mail firstname.lastname@example.org; or may be made by completing a request form at any rules hearing held by the Montana State Fund.
8. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of this notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
10. With regard to the requirements of 2-4-111, MCA, the Montana State Fund has determined that the amendment of the above-referenced rule will not significantly and directly impact small businesses.
/s/ Curtis E. Larsen
Curtis E. Larsen, Interim General Counsel
/s/ Lance Zanto
Chair of the Board
/s/ Michael P. Manion
Michael P. Manion, Chief Legal Counsel
and Rule Reviewer
Certified to the Secretary of State March 28, 2016.