CO HB1091

Insurance carriers must notify the authorized rating organization within 30 days after claim closure to revise an employer's experience modification factor based on the actual dollar amount paid rather than the amount reserved.

The requirement applies when claims close for less than the amount paid plus reserves, or when the carrier recovers money through subrogation after claim closure.

The authorized rating organization must revise the experience modification factor within 30 days of receiving carrier notification and adjust it to reflect the previous three years of loss experience.

Insurance carriers must credit employers for any premium changes resulting from the revised experience modification factor.

The bill takes effect July 1, 2014 and applies to all claims closed on or after that date.