Colorado § 8-46-105 - Calculation of premium - permanent total disability - employer may request examination.

§ 8-46-105. Calculation of premium - permanent total disability - employer may request examination.

(1) Effective July 1, 1993, in any case in which an employee previously has sustained permanent partial disability and, in a subsequent injury, sustains additional permanent partial disability and it is shown that the combined industrial disabilities render the employee permanently and totally disabled, then the premiums of the employer in whose employ the employee sustained such subsequent injury shall be determined only on the basis of the impairment rating for such subsequent injury and not on the basis of the employee's permanent total disability. If such employer disputes the impairment rating for the subsequent injury, the employer shall request an independent medical examination pursuant to the procedures set forth in section 8-42-107.2. The finding of the independent medical examiner regarding the impairment rating may be overcome only by clear and convincing evidence. The total cost of the employee's permanent total disability shall not be considered in determining the employer's premiums, but shall be considered by the commissioner of insurance in setting rates.

(2) In any case in which an employee becomes disabled by an occupational disease and the employer is liable for benefits pursuant to section 8-41-304 (2), then the premiums of the employer in whose employ the employee became disabled shall be determined only on the basis of the impairment rating for the portion of the occupational disease attributable to such employer and not on the basis of the combination of such portion and any prior impairment resulting from such occupational disease. For the purposes of premium calculations, if such employer disputes the impairment rating for the occupational disease, the employer shall request an independent medical examination pursuant to the procedures set forth in section 8-42-107.2. The finding of the independent medical examiner regarding the impairment rating may be overcome only by clear and convincing evidence. The total cost of the employee's occupational disease shall not be considered in determining the employer's premiums, but shall be considered by the commissioner of insurance in setting rates.

Source: L. 92: Entire section added, p. 1831, § 5, effective May 19. L. 93: Entire section amended, p. 2142, § 4, effective July 1. L. 98: Entire section amended, p. 1431, § 4, effective August 5.

ANNOTATION

By closing the subsequent injury fund to cases of permanent total disability involving new injuries, the general assembly intended to place full liability for permanent total disability benefits on the last employer. The general assembly further intended to mitigate the costs to an employer held liable for such benefits by requiring its insurers to consider only the medical impairment rating of the last injury when setting the employer's insurance premiums. Insurers may recoup expenses not covered by an employer's premiums by increasing its insurance rates to similarly situated employers in a risk pool. United Airlines v. Indus. Claim Appeals Office, 993 P.2d 1152 (Colo. 2000).