Retrospective premium is calculated using the following formula: | Retrospective premium = (basic premium ratio x standard premium) + (loss conversion factor x developed losses). |
| Note: | You can find the basic premium ratios and loss conversion factors in WAC 296-17-90493 through 296-17-90497. Remember to use the preselected plan, maximum premium ratio and standard premium for the coverage period. |
Maximum retrospective premium is calculated using the following formula: | Note: | If the retrospective premium formula produces a value greater than the maximum retrospective premium, the retrospective premium is reduced to the maximum retrospective premium. |
Minimum retrospective premium is calculated using the following formula: | Note: | The MnPR only applies to plans A1, A2, and A3. If the retrospective premium formula produces a value less than the minimum retrospective premium, the retrospective premium is increased to the minimum retrospective premium. |
An employer enrolled in plan A as an individual or an organization sponsoring a group may elect to forego the protection of a maximum premium ratio (MPR).
| Note: | To forego the protection of the MPR, the financial conditions of the employer or sponsoring organization must be such that they could qualify as a self-insurer under the department's certification guidelines. The basic premium ratio will be .058 if the employer/group selects and qualifies for an unlimited maximum retrospective premium. |
[Statutory Authority: RCW 51.18.010(1). 02-23-089, § 296-17-90446, filed 11/20/02, effective 1/1/03.]