Milford chronicle., 1919-12-05
DECISION INTERESTS
DELAWARE EMPLOYERS
INDUSTRIAL ACCIDENT BOARD ADOPTS
new EXPERIENCE RATING PLAN AND
MAKES ANNOUNCEMENTS.

The Industrial Accident Board has
recently received numerous letters
asking that an experience rating plan
be adopted in connection with work
mems compensation insurance,
The members OF the board have also
had numerous personal interviews and
telephone conversations with Della
ware employers in regard 10 this sub
iect. Il Is unnecessary for us 10 sug-
gest what company or companies start
"a this agitation. or their purpose,
because. after all. what the Delaware
employer wants is a reduction of rates
that Will not affect the stability of the
insurance companies. n may be noted.
however. that the companies agitating
experience rating did not az the same
time advocate "a general reduction in
rates. AS a result OF this agitation
he board, on November 5. last. adopt
"a the following resolution:
Whereas. the present manual OF
lassihcations, normal premium rates
and system OF schedule and merit rat
ng for the State OF Delaware was
based on experience from other States
of the policy year 1916 and earlier
wears;
Whereas. experience compiled by
the Pennsylvania Compensation Rating
ana Inspection Bureau and furnished
20 the Delaware Compensation Rating
and Inspection Bureau and 10 the In
iustria Accident Board OF the State
Of Delaware. indicates that these rates
are excessive aud also that these rates
discriminate unfairly between differ
eut ciassiicIu
BE 10 resolved that the Industrial
Accident Board hereby withdraws It's
rrrotsl at t5e existing manual of
compensation Insurance classi6CatiOus.
rules and rates AIS of December 81.
1919. and requests that said Delaware
Compensation Rating and inspection
Bureau 90 formulate and file with the
Industrial Accident Board ON or be-
fore December T. 1913. for It's APPROX
al a manual of ciassifcauOns. rules.
normal premium rates and system of
schedule and merit rating based upon
the aforesaid experience To- become G
effective December 3l 1919
BE it further resolved to request &
the Delaware Compensation Rating /
aud Inspection Bureau, in formulating .
q system OF merit rating TO take into d
the adyisability OF APP q
plying experience rating 10 Delaware T
risks during the year 1920"
AT a meeting OF the governing COM f
nittee OF the Delaware Compensation \
Rating and Inspection Bureau held on d
November II. for consideration OF the "
Oregoing resolutions, it was agreed e
ls follows: a
l. Rates 10 the eighty-fye per cent
4 the rates in the new Pennsylvania "
danual. 20 be effective midnight De- o
ember 81, 1919 N
2. Adoption OF the Pennsylvania VI
chedule rating plan effective mid
light. December 81. 1919.
3. The Pennsylvania experience
ating system TO become effective mid
light December 81. 1879. with an ex-
erience period Of eighteen months for h'
II policies expiring on or before ID
iarch 81, 1920, and an experience per- D'
ID of two full years for policies ex- m
iring later than that date al
The above propositions have this OF
ay received the approval OF the In 10
ustrial Accident Board. 70
The adoption Of the rate level OF pI
Ighty-flye per cent OF the Pennsyl-
ania rate level; that Is. eighty-hve
er cent Of the present rates on the DC
verage Is quite important TO em- en-
lOyers in this State. II Is true that WI
lme rates are increased and others h'
screased by the additional experience th
lailable sfOr making Pennsylvania be
ties. The average OF the new Penn to
'lvania rates. however, is just about WI
e same for all industries, excepting re
,al mining. that Il has been during 10
e present year. AS the present Del nv
ware rates are those of the present la
Manual this action is ~
effect. a fifteen per cent decrease in "c
alaware rates. and will have much OH
oader effect in that it applies uni pF'
rsally to all insurers, whereas eX- oul
Tience or schedule rating systems IRA
ist OF necessity apply to larger risks on
In considering the subject of rates SUI
must be borne in mind that the last
'laware Legislature materially in
sased the compensation benefits.
r instance, the maNmum weekly lus
payable was increased "
IN ten dollars to fifteen dollars per sor
elk. The compensate period was YEA
ended. and the medical and hos nia' i
Al service was increased from TWEEN cua
five to seventy-hve dollars. These Oh
reases in benefits naturally have Sou S
effect OF Increasing the aggregate N"s
Insurance premiums.
sSoiI bo ,ioS ~ 49, Saro " oa;o say eea Proi
snit ne sro,rorti1. es i,prOy ti,p,. -. eas Deli
Ire IN co,nectio, ,ritl, oo-,g,.,a -'' Fria
i,eursnce ,natta-s a., or5ar ts"t Pro-
NAV kno,, fbot thejr risI,s 'lae 10 of e
nerIy ciassieod an5 tho+ tbos. n -o a- tilt!
me nrono. jos,ra,oo go '''.,, - s.'0' "'e back
he v