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Chemical Codes 4828 & 4829

Chemical and Dyestuff Rating Plan eliminated effective 7/1/96. The 48 codes in the Plan were replaced by 2 codes.;

Item Filing B-1334 eliminated the Chemical and Dyestuff Rating Plan (CDRP) effective 7/1/96. The 48 codes in the CDRP were replaced by two codes:

Chemical Blending or Mixing NOC - All Operations & Drivers - shall not be assigned to a risk engaged in the manufacture of chemicals

Chemical Mfg. NOC - All Operations & Drivers - includes blending or mixing. Shall not be assigned to a risk that is engaged exclusively in the blending or mixing of chemicals. The following is a partial list of chemical manufacturing processes contemplated by Code 4829: alcoholysis; alkylation; amination; calcination; carboxylation; compression of gases; distillation; esterification; halogention; nitration; oxidation; reduction; sulphonation.

The filing includes a one year transition program for renewal policies from 7/1/96 to 6/30/96. The renewal manual rate and ELR will be the average of the expiring rate from the old code and the renewal rate of the new code, either 4828 or 4829.

Example: An insured was classified under code 4820 with a rate of $3.00 for the policy effective 2/1/96 to 2/1/97. Upon renewal effective 2/1/97, the insured is assigned code 4828. It has an advisory rate of $1.00. We take the average of the old rate ($3.00) and the renewal rate ($1.00) which gives us an averaged rate of $2.00. The $2.00 rate applies until the renewal policy expires on 2/1/98. Effective 2/1/98, the transition program no longer applies and the normal advisory rate is in effect.

Remember that the ICRB published rate is an advisory rate. A carrier may use its own rate. If a carrier filed its own rate(s), then that's what the carrier must use when doing the averaging for the transition program.

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.