Consolidating separate legal entities' loss experience to develop a common experience modification factor has the potential to cause confusion for the client, the agent, and sometimes the insurance carrier.
Clients may view such mixing of loss experience due simply to common majority ownership as less than reasonable, especially if the commonly-owned entities substantially differ with regard to the relative hazard presented.
Agents and underwriters may not realize that combinability is present, and you may only get a glimpse of the need to combine entities at the time of the audit.
How many different ways "majority interest" can be created; and
How to map "combinable" entities.
The idea of combinability seems rather simple, the mechanism of combinability can be rather complex. Who is combinable? How many ways is "majority interest" created? Who should make the final decision regarding combinability? These are questions for which many in the insurance industry really don't have an answer (or not the correct answer).
Workers' Compensation Retrospective Rating Plans can be an effective method for employers to finance and reduce their injury costs. Learn more about this course »
The student of this two-part series learns the basic lexicon that's unique to professional liability, as well as the core concepts that differentiate this segment of the insurance industry from other liability lines. Learn more about this course »
Whether you sell or service Homeowners Associations or just serve on your condominiums board you will find this webinar informative. Learn more about this course »
Featured Book
The purpose, processes, and intricacies of business income coverage
The Insurance Professional's Practical Guide to Workers' Compensation
View the book overview This is not your ordinary workers' compensation book. Workers' compensation coverage is relatively easy to understand. It's the legal, procedural and contractual issues surrounding workers' compensation that are complicated. Buy Today! Get the Paperback version or download the Digital version
Upcoming Live Webinars
Attend live - plus get unlimited anytime access to the archive after!
The idea of combinability seems rather simple, the mechanism of combinability can be rather complex. Who is combinable? How many ways is "majority interest" created? Who should make the final decision regarding combinability?
Instructed by: Chris Boggs Date: Thursday, April 18 Time: 10:30am PT / 1:30pm ET Length: 1 hour
No comments:
Post a Comment