211 CMR, § 115.05 - Requirements Applicable to Large Deductible Plans
(1) Large Deductible Plans may be offered
only to Insureds whose Massachusetts workers' compensation full coverage
standard premium plus ARAP would otherwise exceed $375,000. Insureds with
either:
(a) at least $50,000 of annual
non-Massachusetts workers' compensation premium; or
(b) at least $10,000 of annual
non-Massachusetts workers' compensation premium and payroll in at least two
states other than Massachusetts, only need $100,000 or more in countrywide
workers' compensation premium to be eligible to be written on Large Deductible
Plans. Premium determinations for eligibility to offer Large Deductible Plans
shall not include self-insurance "premium".
(2) All Large Deductible Plans shall include
a reasonable aggregate deductible limit. For Insureds having less than $500,000
in countrywide workers' compensation premium, such reasonable aggregate
deductible limit may not exceed three times standard premium.
(3) Rates for Large Deductible Plans shall be
convertible to approved retrospectively-rated programs, using the most recently
approved parameters, in a manner acceptable to the Division. The Division shall
make available to Insurers an example of an approvable rate
structure.
(4) All Large Deductible
Plans or LRARO products offered, written or renewed in the Commonwealth shall
comply with
211 CMR 115.00.
(5) For Large Deductible Plans on projects,
the premium size requirements set forth in 211 CMR 115.05 may be met by summing
the standard premium of the individual contractors within a Wrap-up.
Notes
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