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Ownership: Recalculate Rating

Rule on recalculating a rating: within and after 90 days of change.;

In recalculating an experience rating due to an ownership change, the cutoff point is 90 days. If we are notified (ERM-14 form) within 90 days of the change, we will revise the modification as of the effective date of the ownership change. After 90 days, we will revise the modification upon the next rating date. Please reference Experience Rating Plan Manual, Rule 3.E.3.

 

Example of Recalculation Due to Ownership Change

 

 

 

 

 

Mod.

1/1/2014

1/1/2015

1/1/2016

1/1/2017

Published

1.50

1.20

1.80

0.90

Revised

No

No

2.00

1.50

 

            l                                        l

            l                                        l

            v                                       v

Ownership Change 7/1/2013       Notice received 6/1/2015

                                                More than 90 days after,

                                                So change next rating 1/1/2016

 

Notes:

Generally this rule (3.E.3.) is applied to ownership changes unless unusual circumstances might require the application of Rule 3.E.1., Transfer of Experience, or Rule 3.F., Evasion of ER Mod.

Per Experience Rating Plan Manual Rule 3.E.1:

"The rating organization may issue, retract and/or revise the current and up to two preceding modifications due to ownership or combination status changes."

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The material in this document has been prepared and shared for informational purposes only and should not be relied upon as legal advice on any particular situation.