Interstate and Overall Rating Plans

The National Council on Compensation Insurance has recently adopted two rather extensive modifications to the existing rating plans for workmen's compensation insurance. The first is the extension of the experience rating plan from an intra-state to an interstate basis. The second provides for the optimal combination for retrospective rating purposes of workmen's compensation and other third party liability lines . This extension of the retrospective rating plan further provides that the rating values are not fixed in tabular form as in the current retrospective procedure, but may be selected by the assured and the carrier in accordance with the rules established for the plan. It is the intent of this paper to outline the reasons for these modifications and the procedures that will be involved in their application.