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PA Bulletin, Doc. No. 96-1460


Workers' Compensation Schedule Rating

[26 Pa.B. 4298]

   The Insurance Department has established procedures for implementation of the provisions of Act 57 that allow for Workers' Compensation schedule rating for risks that do not qualify for the uniform experience rating plan.

   On June 24, 1996, Act 57 of 1996 (P. L. 350, No. 57) was signed into law by Governor Tom Ridge. Act 57 contains provisions for schedule rating for Workers' Compensation. The effective date of these provisions is August 23, 1996.

   Proposed schedule rating plans must be filed with and approved by the Insurance Department. The following criteria will be used in determining the acceptability of a filing:

   1.  Act 57 allows approval of plans that provide modification of the rate, including the loss cost portion of the rate, for risks ineligible for experience rating.

   2.  The Department will consider schedule rating plans for risks eligible for experience rating provided that the modification for these risks is not based on measurement of loss producing characteristics of an individual insured. Per Act 44, the experience rating plan is the exclusive means of providing prospective premium adjustment based on these measurements.

   3.  The filed schedule rating plan must detail characteristics to be used in determining the adjustment.

   4.  The order of calculation for premium determination must be specified and consistent with the Bureau's statistical plans.

   5.  Companies should allow 30 days for the Insurance Department's review of the filing but may request an effective date to be concurrent with completion of the Department's review.

   Companies must continue to report data on schedule rated risks to the Pennsylvania Compensation Rating Bureau and Pennsylvania Coal Mine Compensation Rating Bureau consistent with those Bureau's statistical reports and financial data calls.

   Any questions may be directed to Stephen Kcenich, Insurance Department, Office of Rate and Policy Regulation, Property and Casualty Actuarial Review Division, 1311 Strawberry Square, Harrisburg, PA 17120, (717) 783-0693.

Insurance Commissioner

[Pa.B. Doc. No. 96-1460. Filed for public inspection August 30, 1996, 9:00 a.m.]

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