Indiana Code 27-7-2-25 establishes that “The bureau shall procure annually from the department a license to carry on its business for which license a fee of one hundred dollars ($100) shall be paid to the state of Indiana through the insurance department of this state. The license year shall terminate on the thirtieth day of April of each year.”
Indiana Code 27-7-2-3 provides that "...every insurance company authorized to effect worker's compensation insurance in this state shall be a member of the worker's compensation rating bureau of Indiana. The bureau shall be composed of all insurance companies lawfully engaged on July 1, 1935, wholly or in part in making worker's compensation insurance in Indiana or who shall after July 1, 1935, be issued a certificate of authority to make worker's compensation insurance in this state."
Below are several references in the Indiana Code and Experience Rating Plan Manual that indicate the experience modification produced by the ICRB must be used by insurance companies. In other words, insurance companies may not file their own experience rating plans nor deviate from the published modification factor that the ICRB issues for each qualifying employer in Indiana.
IC 27-7-2-3.1 (10)
27-7-2-3.1. Powers of bureau.
The bureau, in addition to other activities not prohibited, is authorized to do the following:
(10) Prepare and distribute rules and rating values for the experience rating plan. Calculate and disseminate individual risk premium modification.
27-7-2-20. Reporting of statistical information.
(a) Every company shall adhere to manual rules, policy forms, a statistical plan, a classification system, and experience rating plan filed by the bureau and approved by the commissioner.
Experience Rating Plan Manual Rule 1-B-1 and 1-B-2
The Experience Rating Plan Manual for Workers Compensation and Employers Liability Insurance (the Plan) applies on a mandatory basis for risks that meet the premium eligibility requirements in Rule 2-A. Refer to the state rules for exceptions to this Plan's national rules.
Any action taken in any form to evade the application of an experience rating modification determined in accordance with this Plan is prohibited.
Experience Rating Plan Manual Rule 1-D-2 and 1-D-5
The experience rating modification is calculated, issued and, if necessary, revised by the appropriate rating organization listed in the Preface.
The calculated experience rating modification factor is applied by the carrier(s) in accordance with this Plan, other applicable rules, statutes, and regulations.