To:           All Insurance Companies Writing Workers' Compensation Insurance in the State of Missouri

From:      Susan Schulte, Property and Casualty Section Chief

Re:          Workers' Compensation Rate Filings -- January 1, 2000 Administrative Tax

Date:       February 23, 2000

The attached announcement, sent out on January 27, 2000, states that "effective January 1, 2000 (for the calendar year 2000) the Workers' Compensation Administrative Tax will be fully abated and a 3 percent Second Injury Fund Surcharge will be assessed on workers' compensation premiums." The Missouri Department of Insurance realizes that many insurers have already filed their workers' compensation rates to be effective January 1, 2000. As these rates most likely include the previous 2% premium tax as a part of their expense component in the loss cost multiplier, it is incumbent upon those insurers to re-file their workers' compensation rates to reflect the tax abatement now in effect. The Department will waive the $50 filing fee for those insurers who re-file their rates within 30 days from the date of this notice provided that the substitute filing states that it replaces a previous rate filing that contained the 2% premium tax expense.

As the tax abatement situation is similar to one that occurred in 1994 and 1995, any inquiries regarding its calculation can first be directed to Bulletin 98-03. Any further questions may be directed to the Property & Casualty Section at 573/751-3365. The Missouri Department of Insurance thanks you in advance for your continued cooperation.