KRS 304.13-410: Premium reduction for deductible workers' compensation policy.

(1) An employer policyholder who selects a deductible workers' compensation policy

shall be granted a premium reduction by the insurer. The premium reduction shall

be calculated by the insurer in accordance with administrative regulations

promulgated by the co mmissioner and shall be fully disclosed to the employer

policyholder in writing.

(2) For ratemaking purposes, the premium reduction granted to an employer

policyholder in accordance with the provisions of subsection (1) of this section shall

be applied and considered prior to the application of experience modification

adjustments, premium surcharges, or premium discounts.

(3) In addition to the provisions contained in subsection (2) of this section, only the net

experience of an employer policyholder, which results after application of the

deductible amount, rather than the gross experience of the employer policyholder,

shall be used by the insurer or advisory organization in the calculation and

preparation of workers' compensation rates. Violation of the pr ovisions of this

subsection shall constitute grounds for the suspension or revocation of the license of

an insurer or advisory organization in the manner prescribed in KRS Chapter

304.13-320.