The Chemical and Dyestuff Rating Plan

The customary procedure for the segregation of risks into rate groups for casualty insurance purposes, particularly in workmen's compensation, is to erect classifications which are broadly descriptive of (1) a product, (2) a process, or (3) a business. Few, if any, classifications involve more than one of these three principles. For example, we have in our compensation manual, "Boot and Shoe Mfg." This is a typical "product" classification and any manufacturer of shoes is included in this classification irrespective of whether he makes his shoes by hand or whether his factory is equipped with the most up-to-date machinery. Other classifications such as "Electroplating" are based upon a particular "process." In such a classification we would include a risk using this process irrespective of whether the metal used in the plating process was copper, or silver, or nickel--or whether the objects plated were small pieces of metal or were heavy machinery parts.