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COMMERCIAL AUTO INDIVIDUAL RISK PREMIUM MODIFICATION PLAN (IRPM) - page 3 / 4

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Time with Current Employer 12% Credit to 15% Debit

The following guide must be used when applying the schedule rating for time with current employer. The ranges identified must be followed. Generally, the credits or debits within a range should be proportionate to the percentage of drivers retained for longer than 12 months. Any credit or debit within a range is acceptable but documentation is necessary when not proportionate.

15% <25% retained longer than 12 months

Debits

Average

14%--10%

9%---1%

0%

<25 - 44%

45% - 59%

60% retained

retained

retained

longer than

longer than

longer than

12 months

longer than

than 12

12 months

12 months

12 months

months

1%---7%

8%---12%

61% - 75%

76% - 100%

Credits

retained

retained longer

e. Safety Organization

The number of power units per account has a direct bearing on what constitutes an average safety organization. Naturally, larger accounts are expected to have a more sophisticated safety program then smaller accounts. The minimum expectations for an average risk are documented for 1-10 power units, 11-25 power units, and accounts of over 25 power units. Risks having just the minimum qualifications will not qualify for a credit or debit.

1-10 power units

  • 1.

    Accident investigation by the supervisor or owner

  • 2.

    Review the accident with the driver and initiate a corrective or disciplinary action plan if needed.

Risks with over 5 units missing one of these components will be debited 2%, if both are missing a 5% debit will be applied.

Insureds with both of these components in place and at least two additional safety practices* will qualify for a credit up to 5% depending on the effectiveness of the additional components.

10-25 power units

  • 1.

    Accident investigation by the supervisor or owner

  • 2.

    Review the accident with the driver and initiate a corrective or disciplinary action plan if needed.

  • 3.

    Written minimum hiring standards regarding number of years experience and motor vehicle record

4.

qualifications for drivers. Informal safety meetings held at least bi-annually

A risk without all four of these components will be subject to a debit within a range of 3% to 5%.

A risk with all four of these components in place and at least two additional safety practices will qualify for a credit of up to 5%. A risk with all four of these components in place and more than three additional safety practices with evidence of their implementation will qualify for a credit of up to 10%.

CSE Safeguard Insurance Company

CA underwriting guide 0707

3

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