As was announced last month, the Commissioner of Insurance has approved a revision of Workers’ Compensation rates, effective September 1, 2008, applicable to policies that are new or renew on or after that date. The specific changes and the actual rates for individual classifications have just been released. With this mailing we have enclosed a listing of the actual rates for the most common construction classifications. The most important items that will change effective 9/1/08 are:
- RATE LEVEL DECREASE OF 00°/»
The overall average decrease will be 1.0% from the existing workers’ compensation average rates. The actual change will vary by individual class. The Average Rate for the construction industry as a group increased 0.9%. However, some individual rates have gone up as much as 20°/», so be sure to check those that apply to your work.
- USL&H PERCENTAGE LOADING
The USL&H Percentage Loading will increase from 38.4% to 39.2%. If operations under Non-F classifications involve employees subject to the U.S. Longshore and Harbor Workers’ Compensation Act you must multiply those rates by a factor of 1.392.
- EXPERIENCE RATING PLAN CHANGES
The Experience Rating Plan Expected Loss Rates will be revised and distributed by the Bureau. Keep in mind if a manual rates go down, the Expected Loss Rate – the losses you are expected to have, also go down. This means, if all else remains the same, your Experience Modification will tend to go up. This will apply to Experience Modifications effective on and after 9/1/08.
Experience ratings and ARAP factors effective September 1, 2008 and subsequent will be issued by the Bureau “in due course” using the new Expected Loss Rates, and the ARAP maximum of 1.25 established last year. Any preliminary experience ratings and ARAP factors previously released for effective dates 9/1/08 and beyond will be replaced.
- SMALL DEDUCTIBLE CREDITS
The premium reduction percentage applicable to the election of small deductibles have been revised to the following:
Deductible Reduction | Deductible Reduction
$500 2.3% | $2,000 5.5%
1,000 3.7% | 2,500 6.2%
If you have an Aggregate Deductible Program those credits have changed as well, but are based on your total premium. Those changes range from zero to -0.3 percentage points.
- NO CHANGES IN THE FOLLOWING:
- Loss Constants
- Merit Rating Credit Program
- Premium Discounts
- Qualified Loss Management Program [QLMP] Please let us know if you have any
Very Truly Yours,
DeSanctis Insurance Agency, Inc.
