Claim-Free Discount Examples (Class 6403 Convenience grocery store, no gas)

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 2007 proposed workers' compensation rates per hour worked.

Example 1

No compensable claims (claim free)

No compensable claims (claim free)
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	-	2,592.91	12.00%	2,281.76
Excess	-	1,839.41	7.00%	1,710.65
Total	-	4,432.32	-	3,992.41

Computed Experience Factor	3,992.41 (Credible Estimate) divided by 4,432.32 (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

One compensable claim at $5,000
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	5,000	2,592.91	12.00%	2,881.76
Excess	-	1,839.41	7.00%	1,710.65
Total	5,000	4,432.32	-	4,592.41

Computed Experience Factor	4,592.41 (Credible Estimate) divided by 4,432.32 (Expected Loss)	equals	1.0361
Claim-Free Experience Factor			0.9000
Prior Experience Factor			0.9000
Final Experience Factor			1.0361

Example 3

One compensable claim at $40,000

One compensable claim at $40,000
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	28,208.83	2,592.91	12.00%	5,666.82
Excess	11,791.17	4,432.32	7.00%	2,536.03
Total	40,000	4,432.32	-	8,202.85

Computed Experience Factor	8,202.85 (Credible Estimate) divided by 4,432.32 (Expected Loss)	equals	1.8507
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.