This is an example and may not reflect the actual numbers associated with your business.

These examples show how one time-loss claim can raise workers' compensation rates for an employer in class 6403 that is currently under the claim-free discount.

The rates are based on the 2010 workers' compensation rates per hour worked.

Example 1

No compensable claims (claim free)
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	-	2,933.19	12.00%	2,581.21
Excess	-	2,072.25	7.00%	1,927.19
Total	-	5,005.44	-	4,508.40

Computed Experience Factor	4,508.40 (Credible Estimate) divided by 5,005.44 (Expected Loss)	equals	0.9007
Claim-Free Experience Factor			0.9000
Prior Experience Factor			0.9000
Final Experience Factor			0.9000

Example 2

One compensable claim at $5,000
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	5,000	2,933.19	12.00%	3,181.21
Excess	-	2.072.25	7.00%	1,927.19
Total	5,000	5,005.44	-	5,108.40

Computed Experience Factor	5,108.40 (Credible Estimate) divided by 5,005.44 (Expected Loss)	equals	1.0206
Claim-Free Experience Factor			0.9000
Prior Experience Factor			0.9000
Final Experience Factor			1.0206

Example 3

One compensable claim at $40,000
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	28,662.64	2,933.19	12.00%	6,020.72
Excess	11,337.36	2,072.25	7.00%	2,720.81
Total	40,000	5,005.44	-	8,741.53

Computed Experience Factor	8,741.53 (Credible Estimate) divided by 5,005.44 (Expected Loss)	equals	1.7464
Claim-Free Experience Factor			0.9000
Prior Experience Factor			0.9000
Final Experience Factor			1.1250

See the Claim-Free Discount page for more information.

Call your Account Manager or local L&I office for more rate information.