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 15 percent. Potential savings include a 5 percent credit for 2 loss-free years; an 8 percent credit for 3 loss-free years; a 10 percent credit for 4 or 5 loss-free years, and a 15 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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