Ownership: Recalculate Rating
Rule on recalculating a rating: within and after 90 days of change.;
Rules regarding recalculation of experience rating mods can be located in the Experience Rating Plan Manual, Rule 3-E-3-a & b:
3. Recalculation and Application of Experience Rating Modifications
If a change in ownership and/or combinability status occurs, recalculation of experience rating modifications may be required, as described in the table below. Changes in ownership and/or combinability status may also result in a change in rating effective date, as determined by the rating organization. Refer to Rule 2-B for information on rating effective date.
|If the rating organization . . .||Then . . .|
|Determines that a change in ownership and/or combinability status requires recalculation of experience rating modification(s)||The rating organization will revise the current and up to two preceding experience rating modification(s). For purposes of this rule, the current experience rating modification is the experience rating modification in effect on the date that the notification of the change is received by the rating organization.|
|Revises the current and up to two preceding experience rating modification(s) because of a change in ownership and/or combinability status||The revised experience rating modification(s) (increase or decrease) is applied retroactively to the date of the change in ownership and/or combinability status.|
Recalculation and application of experience rating modifications in conjunction with this rule is subject to Rules 3-F and 4-E.
Prior to January 1, 2019, the rule was applied as follows:
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.
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