Integrated Consulting Services, Ltd. - Retrospective rating information

Retrospective rating information

Eligibility criteria

Any employer wanting to participate in Retrospective Rating must have at least $25,000 of estimated premium. Then, the employer must meet specific eligibility requirements (see Related links below) for either the Tier I or Tier II retrospective rating plan.

Tier II eligibility requirements are the same as Tier I unless an employer has entered into any partial payment arrangement with BWC. For Tier I, you cannot have entered into a partial payment agreement for the payment of assessments due the state insurance fund for the past three rating years before the start date of the retrospective policy year. BWC can waive this for Tier II applicants.

Coverage status

You must be in an active status on the first day of the policy year. BWC's administrator may waive this requirement for new businesses moving into Ohio. Also, you cannot have cumulative lapses in coverage in excess of 15 days within the last five rating years.

Financial information

To qualify for retrospective rating you must demonstrate financial strength and stability. BWC consider several criteria (OAC 4123-17-42(C)(1)) to determine this.

Outstanding balances

You must be current on any and all undisputed premiums, administrative costs, assessments, fines or monies otherwise due to any fund BWC administers, including amounts due for retrospective rating. In addition, you cannot have any unpaid audit findings or other unpaid billings as of the application deadline.

Employers enrolled in the retrospective rating plan Tier II must implement our 10-Step Business Plan, within the first program year. You must agree to meet quarterly with a BWC representative to discuss the retrospective rating program and risk-management strategies that other employers are successfully using to control their workers' compensation costs.

Hazard Class (OAC 4123-17-45)

Public employers - For all public employer taxing districts, the hazard group shall be that group specifically developed for such employers and that BWC's administrator periodically establishes with the advice and consent of the Workers' Compensation Oversight Commission. Therefore, public employers only have one minimum premium percentage retrospective rating chart.

Minimum premium percentage (OAC 4123-17-54) is the percentage applied to the experience premium to determine the fixed cost BWC will charge, separate from the claims costs associated with the year of participation. BWC's administrator set those percentages to be effective for the Jan. 1, 2007, policy year as indicated in appendixes A (Tier I) and B (Tier II). Please see the minimum premium percentage retrospective rate chart in Related links below.

Private employers - Hazard groups for all private employers come from the retrospective rating section in the National Council on Compensation Insurance (NCCI) governing manual. Once you determine your hazard group, you can select the minimum premium percentage retrospective rate chart (See Related links) for your hazard group.

Minimum premium percentage (OAC 4123-17-53) is the percentage applied to the experience premium to determine the fixed cost BWC will charge, separate from the claims costs associated with the year of participation. BWC's administrator set those percentages to be effective for the July 1, 2006, policy year as indicated in appendixes A (Tier I) and B (Tier II). Please see the minimum premium percentage retrospective rate chart in Related links below.

Applying for retrospective rating

The application for any retrospective rating plan is optional for you, subject to our acceptance. Once you decide to participate in retrospective rating, all your business operations are subject to it.

To apply, you must complete either the Application for Retrospective Rating Plan for Private Employers (U-20) or the Application for Retrospective Rating Plan for Public Employers (U-21) in its entirety - including but not limited to, the selection of a per-claim limit and maximum premium percent. Please see Related links below for blank applications. BWC will reject incomplete applications.

BWC must receive the application 30 days before the start date of the policy year. An application for retrospective rating is good for only one policy year. To continue the plan, you must apply and meet eligibility requirements yearly.

If you want to make changes to your application, you must submit a new form prior to the deadline. If you want to withdraw your application, you must do so in writing prior to the deadline. The document must be signed by an officer of the company. BWC will not accept any changes after the application deadline. BWC will use the latest application filed prior to the deadline to determine your premium obligation.