The following revised criteria are applicable to wrap-up accounts. The risk must be a public entity, such as a public power district. Policies and forms used must be filed with and approved by this Department. Coverage should be non-coercive, that is whenever the subcontractor's rate is lower than the composite rate for the risk, the subcontractor retains own insurer and coverage. Each subcontractor receives an individual policy.
Experience is to be credited to the subcontractors experience by the advisory organization.
An endorsement is to be used to cover any gray areas. All gray area losses must be covered by the wrap-up insurer and then arbitrated between them. General liability coverage can be provided in accordance with these rules. Rates are the rates approved for the wrap-up carrier for that project. To this point they have been written with a composite rate under the Retro D. plan.