The Department of Insurance approved the Delaware Compensation Rating Bureau’s (DCRB) proposed changes to the Experience Rating Plan for policies with Rating Effective Dates beginning Dec. 1, 2024. The changes are intended to improve plan performance through better predictive accuracy.
These changes should lead to:
- a better transition for risks that move between the Merit and Experience Rating Plans, and
- a limit of debit modifications for the smaller, more volatile, risks compared to the current plan.
Other notable items include:
- Split point/loss limit: The plan runs on variable split points based on expected loss amounts ranging from $10,000 to $300,000. This is different from the current plan, which ranges from $30,405 to $553,000.
- The introduction of the max mod formula to ensure a reasonable level of stability for year-to-year changes.
The Department of Insurance approved the filing as submitted. The proposal focused mainly “on assigning different credibility weights to employers’ reported data and implementing new limitations on the charges associated with individual accidents.” The change in eligibility also will change the eligibility requirement for the Workplace Safety Program.
Need additional information?
Contact IA&B VP-Advocacy Claire Pantaloni at ClaireP@IABforME.com or 800-998-9644, ext. 604 or IA&B Legal & Corporate Affairs Director Don Bankus at DonB@IABforME.com or 800-998-9644, ext. 603.