Premium Discount: Combination of Policies

Combination of policies for premium discount is permissable; anniversary rating date rule is a factor.;

Basic Manual Rule 3.A.19.b. states that. if the policies being combined have different expiration dates:
(1) Either NCCI or another licensed rating organization must determine the policy effective date for application of the premium discount.

If two or more policies are issued to the same insured by one or more insurance carriers under the same management and, each policy has a different expiration date, then the anniversary rating date (ARD) would be used as the effective date for the application of premium discount.

If there is not an established ARD, then the effective date of the policy with the higher premium would be used. This is the same procedure when establishing ARD for interstate rating.
All such policies in force prior to such effective date (ARD) shall be canceled and rewritten as of the effective date (ARD).

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