2005 West Virginia Code - §23-2C-10. — West Virginia adverse risk assignment.

§23-2C-10. West Virginia adverse risk assignment.
(a) To qualify for adverse risk assignment, an employer must have been categorically declined coverage by at least two insurers that are not affiliated with each other. The employer shall have the burden of establishing that at least two insurers are unwilling to provide coverage at any premium level that is reasonably related to the risk presented by the employer.
(b) To qualify for adverse risk assignment, the employer shall make an application to the Insurance Commissioner and shall submit the evidence described in subsection (a) of this section.
(c) Upon receipt of the adverse risk assignment application, the Insurance Commissioner shall determine whether subsection (a) of this section has been satisfied. If so, the Insurance Commissioner shall, through the Assigned Risk Fund, provide coverage to the applicant at a premium level to be determined by the Insurance Commissioner, which premiums shall be consistent with generally accepted accounting principles, actuarially sound, and consistent with classification and rate-making methodologies found in the insurance industry. All rates, surcharges or assessments and assignment of adverse risk employers shall be fair and equitable and financially sound in accordance with generally accepted accounting principles.
(d) The coverage provided by this section shall be pursuant to a pooling arrangement managed by the Insurance Commissioner. The Insurance Commissioner may contract with any third party, including any private carrier, to administer this pooling arrangement. Costs necessary to operate this pooling arrangement shall be funded by premiums paid by covered employers, surcharges, if any, to covered employers and assessments to private carriers providing Workers' Compensation insurance in this state.
(e) The Workers' Compensation Board of Managers shall promulgate a rule for the establishment of the pooling mechanism and administration thereof; assessment of private carriers; and rating structure with differing rate tiers for insureds.
(f) As often as necessary, the Insurance Commissioner may assess all private carriers providing Workers' Compensation insurance in this state such funds as are necessary to cover any deficiencies in the pooling arrangement. The assessments shall result in an equitable distribution of costs among private carriers based upon premiums received by the private carriers. Assessments made upon private carriers pursuant to this section may be collected by each carrier from its policy holders in the form of a surcharge.