KRS 304.13-167: Workers' compensation insurers -- Uniform classification and

experience rating systems -- Reporting -- Subclassifications, rating plans, and

other variations from manual rules -- Credit for drug -free workplace

program.

(1) Every workers' compensation insurer shall adhere to a uniform classification system

and uniform experience rating system filed with the commissioner by an advisory

organization designated by the commissioner.

(2) Every workers' compensation insurer shall report its experience in accordance with

the statistical plans and other reporting requirements in use by an advisory

organization designated by the commissioner.

(3) A workers' compensation insurer may develop subclassifications of the uniform

classification system upon which rates may be made. These subclassifications and

their filing shall be subject to the provisions of this chapter applicable to filings

generally.

(4) A workers' compensation insurer may develop rating plans which identify loss

experience as a factor to be used. These rating plans and their filing shall be subject

to the provisions of this chapter applicable to filings generally.

(5) The commissioner shall disapprove subclassifications, rating plans, or other

variations from manual rules filed by a workers' compensation insurer if the insurer

fails to demonstrate that the data thereby produced can be reported consistent with

the uniform classification system and experience rating system and in such a

fashion so as to allow for the application of experience ra ting filed by the advisory

organization.

(6) The commissioner shall approve rating plans for workers' compensation insurance

that give specific identifiable consideration in the setting of rates to employers who

implement a drug -free workplace program purs uant to administrative regulations

adopted by the Department of Workers' Claims. The plans shall take effect January

1, 2008, shall be actuarially sound, and shall state the savings anticipated to result

from such drug -free workplace programs. The credit s hall be at least five percent

(5%) unless the commissioner determines that five percent (5%) is actuarially

unsound. The commissioner is also authorized to develop a schedule of premium

credits for workers' compensation insurance for employers who have saf ety

programs that contain certain criteria for safety programs. The commissioner shall

consult with the commissioner of the Department of Workers' Claims in setting

such criteria. A drug -free workplace credit under this subsection shall not be

available to employers who receive a credit under KRS 304.13-412 or KRS Chapter

351.