TITLE 19

Labor

Workers' Compensation

CHAPTER 23. WORKERS' COMPENSATION

Subchapter V. Taxes and Charges Upon Insurance Carriers and Self-Insurers; Workers' Compensation Fund


(a) For the privilege of carrying on the business of workers' compensation insurance in this State, every insurance carrier shall pay the taxes imposed under the Insurance Code, and every employer carrying the employer's own risk and thereby insuring the employer's own self under this chapter shall pay the taxes imposed by this section.

(b) Every employer carrying the employer's own risk, and thereby insuring the employer's self under this chapter, shall annually on or before January 30 report under oath to the Department the total amount of the employer's payroll for the preceding calendar year, classified in accordance with classifications approved by the Department for the purpose of fixing compensation rates. The Department may verify such classifications and such statement of payroll by inspection and audit at the expense of the employer, and such verification shall be made by the rating bureau or association provided for in § 2607 of Title 18. The charges to self-insurers shall be the same charges which other insurance carriers are required to pay under this chapter. The Department shall assess against such payroll a tax computed by taking 4% of the amount of premium payable upon the payroll so ascertained in accordance with the classifications and premium rates approved by the Department for insurance against liability under this chapter. No employer shall become or continue a self-insurer under this chapter, except upon the payment of the tax for the previous calendar year. The moneys so assessed against and paid by insurers who carry their own risks shall be paid to the Secretary of Finance.

Code 1915, § 3193eee; 30 Del. Laws, c. 204; Code 1935, § 6127; 42 Del. Laws, c. 55, § 3; 19 Del. C. 1953, § 2391; 57 Del. Laws, c. 741, § 29A; 61 Del. Laws, c. 152, § 1; 66 Del. Laws, c. 382, §§ 8, 9; 67 Del. Laws, c. 260, § 1; 68 Del. Laws, c. 9, §§ 66, 67; 70 Del. Laws, c. 172, §§ 3, 4; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 84, § 3; 73 Del. Laws, c. 266, §§ 2-4.;

(a) For the purpose of securing to the State the moneys necessary for paying the salaries and necessary expenses of the State in administering and carrying out Part II of this title relating to worker's compensation, insurance carriers shall pay the assessments imposed by this section.

(b) Semi-annually, on or before September 30 and March 31, every insurance carrier, insuring employees who are or may be liable under this chapter to pay for compensation for personal injuries to or death of their employees, shall report, under oath, or, in the case of a corporation, verified by the affidavit of its president and secretary or other chief officers or agents, to the Secretary of Finance, the amount of all compensation payments and awards actually paid by said carrier during the preceding calendar year, excluding payments made under § 2395 of this title and reimbursements received under § 2396 of this title.

(c) The Division of Industrial Affairs semi-annually as soon as practicable after January 1, 1996 and July 1 shall ascertain and report to the Secretary of Finance the total amount of the following expenses:

(1) 100% of the expenses of the Industrial Accident Board;

(2) 66.6% of all expenses of the inspection function of the Division of Industrial Affairs;

(3) 66.6% of all expenses of the safety function of the Division of Industrial Affairs; and

(4)a. A portion of the Division of Industrial Affairs' administration costs which shall be computed by first adding paragraphs (c)(1), (2) and (3) of this section set forth immediately above; this sum shall then be divided by the amount of all expenses of the Division of Industrial Affairs; the quotient yielded shall be set forth as a percentage rate which shall then be multiplied by the total expenses of the administrative function of the Division of Industrial Affairs, and the product shall be the portion of the Division's administration costs.

b. In determining these expenses, the Division of Industrial Affairs shall include in addition to the direct cost of personal service, the cost of maintenance and operation, the cost of retirement contributions made and workers' compensation premiums paid by the State for and on account of personnel, rentals for space occupied in state-owned or state-leased buildings and all other direct and indirect costs incurred during the preceding calendar year. An itemized statement of the expenses so ascertained shall be open to public inspection in the office of the Department from January 16 to January 31 and from July 16 to July 31 at which time any insurance carrier may challenge said amount of expenses. An appeal of said expenses must be made in writing and received by the Secretary of Labor within 5 days of the closing date of the inspection period. The Secretary or the Secretary's designee shall render a decision of the appeal in writing.

(d) The Department shall then determine for each insurer the proportion/percentage of the expense determined in subsection (c) of this section that the total compensation or payments made by each insurer bore to the total of such expenses. Using these proportions/percentages, the Department shall then assess each insurer its proportion/percentage of such expenses. The amounts so secured shall be paid to the Department of Labor, Division of Industrial Affairs for the expenses of administering this chapter. Such sums shall not be part of the General Fund of the State.

Code 1915, § 3193eee; 30 Del. Laws, c. 204; Code 1935, § 6127; 42 Del. Laws, c. 55, § 3; 19 Del. C. 1953, § 2392; 57 Del. Laws, c. 741, §§ 29B-29D; 61 Del. Laws, c. 152, § 2; 65 Del. Laws, c. 260, § 1; 67 Del. Laws, c. 260, § 1; 70 Del. Laws, c. 118, § 244; 70 Del. Laws, c. 172, § 3; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 84, §§ 3, 20; 72 Del. Laws, c. 80, § 1.;

Whenever any officer of the State is required to give any notice to an insurance carrier subject to Part II of this title, it may be given by personal delivery or by mailed certified letter properly addressed and stamped to the principal office or chief agent of such insurance carrier within this State or to its home office or to the secretary, general agent or chief officer thereof in the United States or to the Insurance Commissioner of the State.

Code 1915, § 3193eee; 30 Del. Laws, c. 204; Code 1935, § 6127; 19 Del. C. 1953, § 2393; 71 Del. Laws, c. 422, § 2.;

Any insurance carrier liable to pay a tax upon premiums under this subchapter shall not be liable to pay any other or further tax upon such premiums or on account thereof under any other law of this State.

Code 1915, § 3193eee; 30 Del. Laws, c. 204; Code 1935, § 6127; 19 Del. C. 1953, § 2394.;

(a) Every insurance carrier insuring employers who are or may be liable under this chapter to pay for compensation for personal injuries to or death of their employees under this chapter shall pay to the Department annually, on or before March 1 and October 1 of each year, a sum not to exceed 1 percent at each date on all workers' compensation or employer liability premiums received by the carrier during the calendar year next preceding the due date of such payment.

(b) Such sums shall be paid by the Department to the State Treasurer, to be deposited in a special account known as "Workers' Compensation Fund." Such sums shall not be a part of the General Fund of the State. Any balance remaining in such special account at the end of any fiscal year shall not revert to the General Fund.

(c) The amounts paid under this section shall constitute an element of loss for the purpose of establishing workers' compensation premium rates.

(d) Should the Department subsequently determine that the amounts assessed are insufficient to meet the Fund's obligations during a calendar year, it may assess insurance carriers to cover any anticipated deficiency, based upon the allocations for that calendar year as determined pursuant to subsection (a) of this section.

(e) Should the Department subsequently determine that the amounts assessed are sufficient to meet the Fund's obligations during a calendar year, it shall not assess insurance carriers until a deficiency is projected based upon the anticipated expenditures for the next calendar year as determined pursuant to subsection (a) of this section.

Code 1915, § 3193j; 29 Del. Laws, c. 233; 30 Del. Laws, c. 203, § 3; Code 1935, § 6080; 45 Del. Laws, c. 299, § 1; 46 Del. Laws, c. 26; 19 Del. C. 1953, § 2395; 58 Del. Laws, c. 96, §§ 2, 3; 58 Del. Laws, c. 531, § 6; 59 Del. Laws, c. 554, §§ 1, 2; 70 Del. Laws, c. 172, §§ 3, 4; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 84, §§ 3, 9, 21, 22.;

(a) The Workers' Compensation Fund is created for the purpose of making payments under § 2327, § 2334, or § 2347 of this title by any insurance carrier.

(b) The Department shall perform the administrative, ministerial, fiscal and clerical functions of the Workers' Compensation Fund. The Fund shall be a party to and shall be represented by a Deputy Attorney General in any proceeding involving possible reimbursement to or from the Fund, and if the decision is against the Fund, the Fund may secure judicial review thereof by commencing an action in Superior Court in the county in which the hearing was held. Any expenses incurred in defense of the Fund are payable from said Fund.

(c) With respect to payments made subject to reimbursement under subsection (a) of this section, insurance carriers, on or before December 15 and July 1 of each year, shall file with the Department a report setting forth the money expended for said payments during the previous 6 months. Reimbursement to such insurance carrier shall be made on January 15 and August 1 each year.

Code 1915, § 3193j; 29 Del. Laws, c. 233; 30 Del. Laws, c. 203, § 3; Code 1935, § 6080; 45 Del. Laws, c. 299, § 1; 46 Del. Laws, c. 26; 19 Del. C. 1953, § 2396; 58 Del. Laws, c. 96, § 5; 58 Del. Laws, c. 531, § 6; 71 Del. Laws, c. 84, § 23; 72 Del. Laws, c. 79, § 1.;