Underwriting

Ratemaking

Pennsylvania is a Loss Cost state. The Pennsylvania Compensation Rating Bureau and the Coal Mine Rating Bureau of Pennsylvania are non-governmental agencies, maintained by member companies. Rates, rules, and regulations of the Rating Bureaus are subject to the authority of the Insurance Commissioner. All insurers are represented by these rating organizations.

An experience modification to premium is available under the Experience Rating Plan administered by the Rating Bureau. An employer is eligible when the premium developed by audited payrolls of exposure during the experience period, extended at current Bureau loss costs, is $10,000 or more. The experience period shall be no more than three years, commencing four years prior and terminating one-year prior, to the date for which an experience modification is to be established.

Discounts may be offered. Premiums earned on a fixed cost basis (not subject to retrospective ratings) are discounted at 10.9% on premiums of $5,000 up to $99,999, 12.6% on premiums between $100,000 and $400,000 and 14.4% on premiums greater than $400,000.

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