OAR 836-042-0005: Definitions

As used in OAR 836-042-0001 to 836-042-0035, unless the context requires otherwise: (1) “Anniversary rating date” means the month and day that rates, rating plans and rating systems are initially applied to a policy in effect and each annual anniversary thereafter, unless a different date is established by the rating organization of which the insurer is a member. (2) “Classification” means a grouping of insurance risks according to a classification system used by an insurer. (3) “Classification System” means a schedule of classifications and a rule or set of rules used by an insurer for determining the classifications applicable to an insured. (4) “Insurer” means any insurer authorized to write workers’ compensation insurance or the State Accident Insurance Fund Corporation. (5) “Loss Cost” means a provision for claim payment (6) “Premium” means the contractual consideration charged to an insured for insurance for a specified period of time regardless of the timing of actual charges. (7) “Provision for Claim Payment” means an estimate expressed per unit of exposure basis for the monetary amount ultimately to be needed to pay workers’ compensation insurance claims, excluding all loss adjustment or claim management expenses, other operating expenses, assessments, taxes, and profit or contingency allowances. (8) “Rate” means a monetary amount applied to the units of exposure basis assigned to a classification and used by an insurer to determine the premium for an insured. (9) “Rating Plan” means a rule or set of rules used by an insurer to calculate premium for an insured, and the parameter values used in such calculation, after application of classification premium rates to units of exposure. (10) “Rating System” means a collection of rating plans to be used by an insurer, rules for determining which rating plans are applicable to an insured, a classification system, and other rules used by an insurer for determining contractual consideration for an insured. (11) “Standard Premium at Company Rates” means Oregon premium determined on the basis of premium rates approved for an insurer and any applicable experience rating modification but does not include expense constants or additional premium charged to achieve minimum premium. (12) “Workers’ Compensation Insurance” means insurance providing coverage for the obligations of an employer arising from illness or injury to workers whether such obligation is imposed by ORS Chapter 656, similar laws of the United States, or agreements between states.