WC & EL / PART ONE / RULE X:

The three-year fixed rate policy is an optional policy that provides workers’ compensation coverage by use of the “Workers’ Compensation and Employers’ Liability Insurance Policy” (WC 00 00 00 C) for a period of three (3) years, at a carrier’s fixed approved rate(s).  This option is available to the insured and the carrier who both retain the right to elect to have the policy written on an annual basis under the rules of the Manual.

The three-year fixed rate option policy is subject to reporting rules in the New York Statistical Plan Manual.

A policy may be issued for a period of three (3) years at a fixed rate, provided that the insured is not eligible for the Experience Rating Plan on the effective date of the policy.

If a policy is issued for a period of three (3) years, but is not a Three-Year Fixed Rate Policy, refer to Rule III Section (C)(3) of this Manual.

A policy issued under this Rule shall be known as a Three-Year Fixed Rate Policy and shall be so designated on the Information Page.

The carrier’s approved rates in force on the effective date of a Three-Year Fixed Rate Policy apply to such policy without change until its termination.

The carrier minimum premium shall be the minimum premium for a one-year policy, as determined by Rule VI Section (D) of this Manual multiplied by three, less:

1. Two carrier’s expense constant if the deposit is paid in advance, or
2. One carrier’s expense constant if the deposit premium is paid in installments.

1. Advance Payment

   If paid in advance, the deposit premium shall be determined by applying the carrier’s approved rates to the three (3) year estimated payroll or other premium basis plus one (1) expense constant.

2. Installment Payments

   If paid in (3) equal annual installments, the deposit premium shall be determined by applying the carrier’s approved rates to the three (3) year estimated payroll or other premium basis plus two (2) expense constant.

3. Minimum Premium

   The deposit premium shall not be less than the carrier minimum premium.

1. Determination

   The determination of the final earned premium may be deferred until termination of the policy.

2. Expense Constant

   The carrier’s expense constant shall be charged in accordance with Section (E) of this Rule regardless of the amount of earned premium.

1. Operations Not Eligible

   None of the operations insured by a Three-Year Fixed Rate Policy are eligible for experience rating during the period such a policy is in force.

2. Policies Not Subject

   A Three-Year Fixed Rate Policy shall not be combined with other policies under the Experience Rating Plan.

3. Experience Not Used

   None of the experience under a Three-Year Fixed Rate Policy can be used in experience rating.

1. By Carrier Or Insured When Retiring From Business

   If a Three-Year Fixed Rate Policy is canceled by the insurance carrier or by the insured when retiring from business insured by the policy:

   1. Apply the carrier’s approved rates to the payroll or other premium basis developed during the period the policy was in effect.
   2. Add the pro rata portion of the carrier’s expense constant required by Section (E) of this rule.

      The earned premium shall not be less than the pro rata portion of the carrier minimum premium required by Section (E) of this rule.

2. By Insured When Not Retiring From Business

   Add $15 to the premium determined in (1) above if such a policy is canceled by the insured, except when retiring from business insured by the policy.