COMPENSATION
ADVISORY ORGANIZATION OF MICHIGAN
P.
O. BOX 3337 •
LIVONIA, MI 48151-3337
PHONE
(734) 462-9600 •
FAX (734) 462-9721
Internet WEB Site: www.caom.com • E-Mail: caom@caom.com
October 6, 2000
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CIRCULAR LETTER NO. 161
Dear Member: The Compensation Advisory Organization of Michigan is preparing to promulgate year 2001 experience modifications beginning October 16, 2000. If you wish to have new rating values used in the promulgation of your January 2001 modifications, we would need to be notified by October 13, 2000. Changes received after that date may result in revisions. Carriers contracting with CAOM for production of experience ratings must notify CAOM of rating plan changes 60 days prior to their effective date. Notification of filings received less than 60 days prior to the effective date will result in a $10 charge for each revised experience modification promulgated. Michigan Law requires that each workers' compensation insurer file an Experience/Merit Rating Plan with the Insurance Bureau. The 2001 Data Collection Agency Pure Premium Publication (CAOM Circular Letter #160 dated September 15, 2000) outlines in Part III, Section A, the choices which should be considered when filing or updating your company's rating plan values. Since classification relativities based upon prior years' experience have an impact on rating values, i.e., expected loss rates, just as they impact manual rate relativities, consideration should be given to updating rating factors when new manual rates are filed. The Michigan Workers' Compensation Placement Facility (MWCPF) has filed for and is awaiting Insurance Bureau approval of its January 1, 2001 rates which will include new rating values. The 2001 DCA rates and rating values are available on our web site @ www.caom.com. Unless we receive direction to the contrary, we will produce each carrier's 2001 ratings with the same factors currently in use. If you have any questions regarding which rating values CAOM is currently using for your company's modifications, please contact our office. Sincerely, 
Jon D. Heikkinen |