WAC 296-17-90446
Retrospective premium calculation
Retrospective premium is calculated using the following formula
Retrospective premium = (Basic Premium Ratio x Standard Premium) + (Loss Conversion Factor x Developed Losses).
| Note: You can find the Basic Premium Ratios and Loss Conversion Factors in WAC (www.leg.wa.gov) 296-17-90493 through 296-17-90497. Remember to use the preselected plan, Maximum Premium Ratio and Standard Premium for the coverage period. |
Maximum retrospective premium is calculated using the following formula
Maximum Premium Ratio (MPR) x Standard Premium (SP)
| Note: If the retrospective premium formula produces a value greater than the maximum retrospective premium, the retrospective premium is reduced to the maximum retrospective premium. |
Minimum retrospective premium is calculated using the following formula
Minimum Premium Ratio (MnPR) x Standard Premium (SP)
| Note: The MnPR only applies to plans A1, A2, and A3. If the retrospective premium formula produces a value less than the minimum retrospective premium, the retrospective premium is increased to the minimum retrospective premium. |
An employer enrolled in plan A (www.leg.wa.gov) as an individual or an organization sponsoring a group may elect to forego the protection of a Maximum Premium Ratio (MPR).
| Note: To forego the protection of the MPR, the financial conditions of the employer or sponsoring organization must be such that they could qualify as a self-insurer under the department's certification guidelines. The Basic Premium Ratio will be .058 if the employer/group selects and qualifies for an unlimited maximum retrospective premium. |
[Statutory Authority: RCW 51.18.010(1) (www.leg.wa.gov). 02-23-089, § 296-17-90446, filed 11/20/02, effective 1/1/03.]
This rule applies to retro coverage period(s) established prior to January 1, 2011.
The courts can take judicial notice of the Washington Administrative Code (WAC) only as published by the Office of the Code Reviser (www.leg.wa.gov). The text contained in this Web page may reflect minor changes when compared with the WAC.
