C.R.S. § 8-44-109.5: Experience modification factor - adjustment.

(1) (a) Each insurance carrier authorized to transact business in this state, including Pinnacol Assurance, that insures an employer against liability for compensation under articles 40 to 47 of this title 8 upon notification by an employer or a licensed insurance producer shall notify the employer's authorized rating organization to revise the employer's experience modification factor to reflect the actual dollar amount paid for a closed claim instead of the actual dollar amount paid plus reserves determined prior to the closure of the claim.

(b) The employer or licensed insurance producer must notify the insurance carrier between the time the claim is reported to a rating bureau and thirty-one days after the employer's rating effective date.

(2) An employer or licensed insurance producer may notify an insurance carrier to modify an experience modification factor pursuant to this section only when:

(a) An open claim is reported by the insurance carrier to the rating bureau with a higher open claim amount than the amount after the claim was closed; and

(b) The lower claim amount would reduce an employer's experience modification factor:

(I) At least .05 compared to the previously released experience modification factor; or

(II) From above 1.0 to 1.0 or below.

(3) The authorized rating organization shall adjust the experience modification factor within thirty days after notification from the insurance carrier pursuant to subsection (1) of this section. The insurance carrier shall credit an employer for a premium change calculated as a result of the updated experience modification factor within the employer's policy period.