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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.

1/1/2015

1/1/2016

1/1/2017

1/1/2018

Published

1.50

1.20

1.80

0.90

Revised

No

No

2.00

1.50

 

            l                                        l

            l                                        l

            v                                       v

Ownership Change 7/1/2014       Notice received 6/1/2016

                                                More than 90 days after,

                                                So change next rating 1/1/2017

This Rule is changing effective 1/1/2019. Ownership changes will apply retroactive to the date of the change.  See NCCI Circular CIF-2017-60

 

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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