Washington Administrative Code › Title 296 - Labor and Industries, Department of › Chapter 296-17B - Retrospective rating for workers' compensation insurance › Section 296-17B-300 - Choosing loss limits

Current through Register Vol. 24-14, July 15, 2024
The loss limits you select will also affect your net insurance
				charge.
(1) Single loss occurrence
			 limit: Your losses incurred for each claim occurrence will be limited by the
			 amount of protection chosen, as described in WAC
			 296-17B-440. You must choose one
			 of the following single loss occurrence limits:
* $120,000;
* $160,000;
* $250,000;
* $275,000;
* $380,000;
* $500,000;
* $550,000;
* $800,000;
* $1,000,000;
* Unlimited.
(2) Aggregate loss limits: The product of the
			 sum of your losses incurred and the performance adjustment factor will be
			 limited by the maximum and minimum loss ratios you select. You will choose both
			 a maximum and minimum loss ratio limit from the options available in the
			 tables. You can also choose loss limits between the options listed in the
			 tables.
(3) Restrictions on choice
			 of limits:
(a) If you wish to select a single
			 loss occurrence limit other than unlimited, the four most recent quarters of
			 standard premiums must be at least twice the limit chosen. For example, you can
			 only choose a single loss occurrence limit of two hundred seventy-five thousand
			 dollars if your standard premiums in the four most recent calendar quarters
			 were at least five hundred fifty thousand dollars.
(b) Your minimum loss ratio limit must be at
			 least twenty percentage points lower than your maximum loss ratio
			 limit.
(c) You can choose any
			 maximum loss ratio between forty percent and one hundred sixty percent. Also
			 you can choose any minimum loss ratio between zero percent and sixty percent.
			 Your choice needs to be rounded to two decimal places. For example, you could
			 choose a maximum loss ratio of ninety-eight and seventy-six one-hundredths
			 percent.
(d) The three limits must
			 be chosen so that the highest possible retrospective premiums must be between
			 105% and 200% of standard premiums, assuming a performance adjustment factor of
			 1.0 and the same size and hazard groups as your most recent coverage period.
(e) If at the time of adjustment,
			 the standard premium at risk is less than one hundred five percent of the
			 standard premium paid, the department will recalculate the adjustment results
			 by amending your plan choices for the aggregate loss limits (maximum loss
			 ratio, minimum loss ratio) so that the results conform to this requirement. The
			 amendment of plan choices will be done in such a way as to make the best
			 financial result for the participant. If that is not possible, the department
			 will not adjust the premium at all: No refund or assessment will be
			 calculated.
(f) If at the time of
			 any annual adjustment, the standard premium you have paid places you in a size
			 group outside of the options available in the appropriate hazard group table
			 found in WAC
			 296-17B-910 through
			 296-17B-990, the department will
			 change your single loss limit selection to unlimited.