Some Aspects of the Retrospective and Supplementary Rating Plans

Both the retrospective and supplementary rating plans contemplate the adjustment of workmen's compensation premium rates for the risks so insured on the basis of experience of the assured for the period covered by the premium. The retrospective plan is akin to stop loss or aggregate excess coverage while the supplementary plan is comparable to deductible coverage. The obligation of the employer to provide security for his employees makes it necessary for the company in either case to stand responsible for the payment of the benefits provided in the Compensation Law unless the plans are to be restricted to those that qualify as self-insurers.