Work Comp Surcharge Rates

Info for: All Plan 2 carriers (Montana Work Comp Insurance carriers)
Plan 3 - Montana State Fund

Rates Effective as of	Administrative Fund Premium Surcharge Rate (MCA 39-71-201)	Subsequent Injury Fund Premium Surcharge Rate (MCA 39-71-915)
7/01/2001	0.026126	0.000000
7/01/2002	0.023642	0.000127
7/01/2003	0.020019	0.000297
7/01/2004	0.011638	0.001355
7/01/2005	0.010466	0.000000
7/01/2006	0.016092	0.000000
7/01/2007	0.012670	0.001130
7/01/2008	0.011836	0.001240

These are the premium surcharge rates to be effective for Montana workers' compensation policies written or renewed on or after each July 1.

Each insurer providing workers' compensation insurance shall collect from its policyholders the surcharge amount at the same time and in the same manner that the premium for the coverage is collected. Terrorism premium is included in the amount collected. The surcharge amount must be stated as a separate cost on an insured employer's policy or on a separate document submitted to the insured employer. The administration fund premium surcharge must be identified as the "workers' compensation regulatory assessment surcharge". The subsequent injury fund premium surcharge must be identified as the "workers' compensation subsequent injury fund surcharge". Each insurer shall maintain reasonable records showing the total amount of premium surcharge billed to its policyholders and the total amount of premium surcharge actually collected. The premium surcharge must be excluded from the definition of premiums for all purposes.

Payment of Surcharge for premiums after July 1, 2001

Each insurer shall collect the premium surcharge levied against every employer that it insures. Each insurer shall pay to the department all money collected as a premium surcharge within 20 days of the end of the calendar quarter in which the money was collected. If an insurer fails to timely pay to the department the premium surcharge collected, the department may impose on the insurer an administrative fine of $500 (for administration fund) and $100 (for subsequent injury fund) plus interest on the delinquent amount at the annual interest rate of 12%. The remittal form has been revised and will be mailed under separate cover.

Negative Premium

Premium should not be carried forward for premium written prior to July 1, 2005. Due to different methods of calculating premium, Estimated Payroll, Retro Policies and/or Premium Audits that could cause negative premium, the carrier should not report corrected premium for policies written prior to 7/01/2005. If you are reporting a negative number please enter zero.

Surcharge Remittal Forms

Please use the new Surcharge Remittal form, previously mailed to you, for remitting the surcharges that were collected in the previous quarter. Please keep the original form and make photocopies for remittal purposes. We will not be sending this form out quarterly. A generic form is available on this web site at http://erd.dli.mt.gov/wcregs/surcharge.asp. If you use the generic form, please be sure to use the Montana Department of Labor & Industry carrier (DLI#) number (not NCCI number, not NAIC number).

If you have any questions please contact Connie Ferriter at (406) 444-6532 or Jeff Lapham at (406) 444-0051.

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