May 2011 Intro Page

Dec Page

The article of the month deals with retrospective rating. Retrospective rating plans are available for use with various types of insurance, but the more common usage is with workers compensation. These rating plans offer a system for determining premiums after the policy period; they adjust premiums at the expiration of the policy period by comparing losses incurred during the current policy year with those expected during the same period. In effect, the intent of retrospective rating is to charge a premium that reflects losses so that there can be a reward for the insured through lower premiums. For information on retrospective rating plans, along with eligibility, terms, and steps to determine a retrospective premium, see the designated article in the Bulletins.