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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 |
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October
3, 2001
CIRCULAR LETTER #168 TO ALL MEMBERS RE:
2002 EXPERIENCE RATINGS Dear Member: The Compensation Advisory Organization of Michigan is preparing to
promulgate year 2002 experience modifications beginning October 22, 2001.
If you wish to have new rating values used in the promulgation of your
January 2002 modifications, we would need to be notified by October 19,
2001. 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 2002 Data Collection Agency Pure Premium Publication
(CAOM Circular Letter #167 dated September 14, 2001) 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, 2002
rates which will include new rating values.
The 2002 DCA and Facility 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
2002 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.
Very truly yours,
Jon D. Heikkinen
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