Experience Rating / RULE 2

All employers with New York exposure during the experience period are eligible for participation in the experience rating plan.

B. RATING EFFECTIVE DATE

  1. The Rating Effective Date appears on a risk’s experience rating worksheet. It is the earliest date that a specific modification is applied to a policy. To determine modification application, refer to Rule 4 Section (D) of this Plan. The Rating Board establishes the rating effective date. In most cases, a risk’s rating effective date is the same as its policy effective date. Note: Wrap-up policies are not used to determine rating effective dates. Refer to Rule 5 Section (A)(4) of this Plan for information on wrap-up policies.
  2. The rating effective date may differ from a risk’s Policy Effective Date for reasons including, but not limited to:
    1. Short-term policies
    2. Cancellations
    3. Gaps in coverage
    4. Changes in ownership or combinability status
    5. Multiple policy effective dates
    6. A policy that is longer than one year and 16 days
    7. Late receipt of current policy information by the Rating Board.
    If the risk is… Then the rating effective date is…
    A single policy risk, or a multiple policy risk with all policies having the same effective date The effective month and day of the most recent full-term policy in effect and each policy thereafter unless the date is changed due to a reason listed above.
    A multiple policy risk with policies having different effective dates The effective month and day of the most recent full-term policy in effect with the largest amount of estimated standard premium.
    Policy Rating Effective Date
    01/01/18 – 01/01/19 01/01/18
    01/01/19 – 06/01/19 01/01/19
    06/01/19 – 06/01/20 01/01/19 (applicable from 06/01/19 to 01/01/20)
    01/01/20 (applicable from 01/01/20 to 06/01/20)
    06/01/20 – 01/01/21 06/01/20

    Since the next full-term policy after the change in effective date is 06/01/19-06/01/20, experience ratings will be issued with rating effective dates of 01/01/18, 01/01/19 and 01/01/20. Upon expiration of the 06/01/19-06/01/20 policy, a new rating effective date of 06/01/20 will apply. Example 3: Assume that after several years, the policy effective date changes, and then changes again.

    Policy Period Rating Effective Date
    01/01/18 – 01/01/19 01/01/18
    01/01/19 – 05/01/19 01/01/19
    05/01/19 – 05/01/20 01/01/19 (applicable from 05/01/19 to 01/01/20)
    01/01/20 (applicable from 01/01/20 to 05/01/20)
    05/01/20 – 05/01/21 05/01/20
    01/01/21 – 01/01/22 05/01/20 (applicable from 01/01/21 to 05/01/21)
    05/01/21 (applicable from 05/01/21 to 01/01/22)
    01/01/22 – 01/01/23 01/01/22