(A) An employer participating in retrospective rating will pay the following:
(1) Minimum premium. The minimum premium depends on the hazard group, the per claim limit selected by the employer, the maximum premium limit selected by the employer, and the employer's base-rated premium or experience-rated premium. The employer's base-rated premium or experience-rated premium is assumed to be at least the minimum experience-rated/base-rated premium threshold listed on the "retrospective rating minimum premium percentages table". The minimum premium includes employer contributions to cover safety and hygiene costs, surplus costs, premium payment security costs, and the cost of losses exceeding the per claim and the maximum premium limitations.
(2) Premium based on paid losses. The employer will pay for any compensation payments, including death and permanent total disability, and medical payments made in covered claims. Billings to the employer will be sent annually for ten years to collect for paid losses.
(3) Premium based on reserves. The employer will pay the value of reserves on claims evaluated as of the end of the tenth year.
(B) Surplus charges in claims will not be charged to the employer.
(C) Individual claims costs will be limited to the per claim limit selected by the employer. The usual experience rating limitations will not apply.
(D) The employer's maximum premium will be limited to a percentage of its base-rated or experience-rated premium as selected by the employer. That is, premiums based on losses and reserves charged to the employer cannot exceed the maximum premium minus the minimum premium.
(E) When an employer leaves a retrospective rating program and returns to the state fund program, the employer shall be subject to all of the provisions of rule 4123-17-03 of the Administrative Code, classification rates.