This Regulation is promulgated pursuant to the authority granted by R.I. Gen. Laws Chapters 27-1, 27-2, 27-7.1 and 42-14.
2.2Purpose
The purpose of this Regulation is to establish procedures for insurance carriers domiciled in Rhode Island to present value certain reserves relating to permanent total disability and survivor death benefits for statutory financial reporting.
2.3Definitions
A.For purposes of this Regulation:
1."Department" means the Department of Business Regulation.
2."Director" means the Director of the Department of Business Regulation.
3."Division" means the Division of Insurance of the Department of Business Regulation.
4."Insurer" means any insurance company domiciled in Rhode Island authorized and licensed to write workers' compensation insurance in the State of Rhode Island.
2.4Present Value of Loss Reserves
A.Insurers shall be allowed to compute the present value of permanent total disability and survivor (death) benefits for reported claims and for incurred but not reported claims which represent total and permanent disability cases, exclusive of loss adjustment expenses, and shall assume a rate of interest not greater than three and one half percent (3.5%).
B.Insurers electing to compute the present value of incurred but not reported claims which represent expected permanent total disability and survivor (death) benefit cases must maintain adequate records which clearly show that portion of the permanent total disability and survivor (death) benefit incurred but not reported claims as distinct from the total estimate of incurred but not reported claims. This present value calculation must be calculated in a consistent manner for all workers' compensation claim reserves as reported in the insurers' statutory filings regardless of claim jurisdiction.
C.This present value shall be allowed for statutory financial reporting purposes beginning in reporting year 1993. Those companies that have reported present value levels which exceed the levels established under this Regulation shall be allowed a phase-in period ending December 31, 1994. The phase-in period shall require present value levels to be amortized rateably beginning with the nearest quarter ending which follows the effective date of this Regulation in order for the insurer to be in full compliance for the 1994 annual statement.
Title
230
Department of Business Regulation (includes the Office of the Health Insurance Commissioner)
Chapter
20
Insurance
Subchapter
15
Workers Compensation Insurance
Part
2
Present Value of Permanent Total Disability Workers' Compensation Reserves (230-RICR-20-15-2)
Type of Filing
Periodic Refile
Regulation Status
Active
Effective
01/04/2022
Regulation Authority:
R.I. Gen. Laws Chapters 27-1
27-2
27-7.1 and 42-14.
Purpose and Reason:
This rule is being refiled by the agency pursuant to R.I. Gen. Laws § 42-35-4.1. No changes were made to the text of this rule.
Rulemaking Documents are organized by document type and are part of this rule’s rulemaking record (R.I. Gen. Laws § 42-35-2.3). If multiple documents of the same type are listed below, each is a unique document.
If there are multiple Public Notice of Proposed Rulemaking documents, view each document to identify the most recently amended version, as it may be amended at any point during the Public Comment Period.
