employees under this article; and
(2) each employer carrying the employer's own risk;
stating that an assessment is necessary. After June 30, 1999, the board may conduct an assessment under this subsection not more than one (1) time annually. Every insurance carrier and other entity insuring or providing coverage to employers who are or may be liable under this article to pay compensation for personal injuries to or death of their employees under this article and every employer carrying the employer's own risk, shall, within thirty (30) days of the board sending notice under this subsection, pay to the worker's compensation board for the benefit of the fund an assessed amount that may not exceed
three and one-half percent (2.5%) (3.5%) of the total amount of all
worker's compensation paid to injured employees or their beneficiaries
under IC 22-3-2 through IC 22-3-6 for the calendar year next preceding
the due date of such payment. For the purposes of calculating the
assessment under this subsection, the board may consider payments for
temporary total disability, temporary partial disability, permanent total
impairment, permanent partial impairment, or death of an employee.
The board may not consider payments for medical benefits in
calculating an assessment under this subsection. If the amount to the
credit of the second injury fund on or before October 1 of any year
exceeds one two million five hundred thousand dollars ($1,000,000),
($2,500,000), the assessment allowed under this subsection shall not
be assessed or collected during the ensuing year. But when on or before
October 1 of any year the amount to the credit of the fund is less than
one two million five hundred thousand dollars ($1,000,000),
($2,500,000), the payments of not more than two three and one-half
percent (2.5%) (3.5%) of the total amount of all worker's compensation
paid to injured employees or their beneficiaries under IC 22-3-2
through IC 22-3-6 for the calendar year next preceding that date shall
be resumed and paid into the fund. The board may not use an
assessment rate greater than twenty-five hundredths of one percent
(0.25%) above the amount recommended by the study performed
before the assessment.
(d) The board shall enter into a contract with an actuary or another qualified firm that has experience in calculating worker's compensation liabilities. Not later than September 1 of each year, the actuary or other qualified firm shall calculate the recommended funding level of the fund based on the previous year's claims and inform the board of the results of the calculation. If the amount to the credit of the fund is less than the amount required under subsection (c), the board may conduct an assessment under subsection (c). The board shall pay the costs of the contract under this subsection with money in the fund.
(e) An assessment collected under subsection (c) on an employer who is not self-insured must be assessed through a surcharge based on the employer's premium. An assessment collected under subsection (c)
does not constitute an element of loss, but for the purpose of collection
shall be treated as a separate cost imposed upon insured employers. A
premium surcharge under this subsection must be collected at the same
time and in the same manner in which the premium for coverage is
collected, and must be shown as a separate amount on a premium
statement. A premium surcharge under this subsection must be
excluded from the definition of premium for all purposes, including the
computation of agent commissions or premium taxes. However, an
insurer may cancel a worker's compensation policy for nonpayment of
the premium surcharge. A cancellation under this subsection must be
carried out under the statutes applicable to the nonpayment of
(f) The sums shall be paid by the board to the treasurer of state, to be deposited in a special account known as the second injury fund. The funds are not a part of the general fund of the state. Any balance remaining in the account at the end of any fiscal year shall not revert to the general fund. The funds shall be used only for the payment of awards of compensation and expense of medical examinations or treatment made and ordered by the board and chargeable against the fund pursuant to this section, and shall be paid for that purpose by the treasurer of state upon award or order of the board.
(g) If an employee who is entitled to compensation under IC 22-3-2 through IC 22-3-6 either:
(1) exhausts the maximum benefits under section 22 of this chapter without having received the full amount of award granted to the employee under section 10 of this chapter; or
(2) exhausts the employee's benefits under section 10 of this chapter;
then such employee may apply to the board, who may award the employee compensation from the second injury fund established by this section, as follows under subsection (h).
(h) An employee who has exhausted the employee's maximum benefits under section 10 of this chapter may be awarded additional compensation equal to sixty-six and two-thirds percent (66 2/3%) of the employee's average weekly wage at the time of the employee's injury, not to exceed the maximum then applicable under section 22 of this chapter, for a period of not to exceed one hundred fifty (150) weeks upon competent evidence sufficient to establish:
(1) that the employee is totally and permanently disabled from causes and conditions of which there are or have been objective conditions and symptoms proven that are not within the physical or mental control of the employee; and
(2) that the employee is unable to support the employee in any gainful employment, not associated with rehabilitative or vocational therapy.
(i) The additional award may be renewed during the employee's total
and permanent disability after appropriate hearings by the board for
successive periods not to exceed one hundred fifty (150) weeks each.
The provisions of this section apply only to injuries occurring
subsequent to April 1, 1950, for which awards have been or are in the
future made by the board under section 10 of this chapter. Section 16
of this chapter does not apply to compensation awarded from the
second injury fund under this section.
(j) All insurance carriers subject to an assessment under this section are required to provide to the board:
(1) not later than January 31 each calendar year; and
(2) not later than thirty (30) days after a change occurs;
the name, address, and electronic mail address of a representative authorized to receive the notice of an assessment.".
(Reference is to HB 1313 as printed January 30, 2002.)