Haw. Code R. § 12-11-59 - Employee contributions toward the cost of coverage under insurance contracts

(a) If an employer provides for disability benefits under the statute by a contract of insurance, the premium charged therefor shall represent the cost of providing the benefits. The employees' contributions shall not exceed one-half of the cost but not more than 0.5 per cent of the employees' weekly wage as determined pursuant to section 392-43, HRS.

(b) If, after the end of a policy year, the employer receives an experience rating credit or a dividend back from the insurer, the employees' share of the experience rating credit or dividend shall be refunded or credited to the employees by the employer. "Employees' share" means one-half of the excess remaining, if any, after the employer has deducted (1) any expenses of the employer directly allocable to the cost of administering the insurance contract, and (2) the amount, if any, by which the employer's contribution to the premium charged during the prior policy years exceeded the employees' contributions. At the employer's option, the employer may refund in cash each employee's proportionate share of the employees' share, or may credit the total employees' share of the experience rating credit or dividend from the prior policy year against the total amount contributable by the employees during the current policy year.

(c) The applicable provisions of a collectively bargained agreement shall prevail in the event of a conflict between those provisions and this chapter.

Notes

Haw. Code R. § 12-11-59

[Eff 5/11/81] (Auth: HRS § 392-91) (Imp: HRS §§ 392-43, 392-61)