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Retrospective Rating Plans
Shared-Earnings Rating Plans
Merit Rating - Loss-Free Credits
Premium Payment Plans
Retrospective Rating Plans
Beacon provides various loss-sensitive rating plans for larger
insureds which, in effect, provide for a final premium on a "cost-plus" basis.
The final cost to the employer equals the cost of the employer's claims plus
Beacon's administrative cost of providing the insurance and claim handling.
This allows an employer with a strong commitment to safety to attain a lower
premium cost than would be possible under traditional guaranteed cost rating.
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Shared-Earnings Rating Plans
This is a type of loss-sensitive plan. The premium is calculated
originally as though the policy were being issued at a guaranteed cost. It
differs, however, in that a distribution is calculated six months after policy
expiration, based on the insured's final audited premium and incurred losses.
Generally with this plan, whenever a developed loss ratio is 45
percent or less, the employer receives a shared-earning distribution.
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Merit Rating - Loss-Free Credits
Beacon's loss-free credit program provides for a premium credit up to a
maximum of 10 percent. Potential savings include a 3 percent credit for
2 loss-free years; a 5 percent credit for 3 loss-free years; a 7 percent
credit for 4 or 5 loss-free years, and a 10 percent credit for 6 or more
loss-free years.
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Premium Payment Plans
Please contact your underwriter to review payment plan options.
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