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

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26 or more power units

  • 1.

    Written formal safety program that is currently in use.

  • 2.

    Written maintenance program and is currently in use

  • 3.

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

qualifications for drivers.

  • 4.

    Written disciplinary policy

  • 5.

    Quarterly safety meetings requiring drivers to attend a minimum of two meetings annually

A risk without all five of these components in place will be subject to a debit ranging from 3% to 7%.

A risk with all five of these components plus at least two additional safety practices currently in place will qualify for a credit up to 5%. A risk with all five of these components plus and more than 3 additional safety practices currently in place will qualify for a credit up to 10%.

*Examples of additional safety practices include, but are not limited to:

An accident review committee with driver file documentation and follow-up, a documented and implemented driver incentive program for accident or violation free driving, a driver accident participation agreement where a driver pays a portion of the deductible for any at fault accident and an active membership in an outside safety organization.

Use of road observation services such as:

Drivers Check, Drivers Alert or (1-800-how’s my driving)

f. Dispersion or concentration of Values - Auto Physical Damage only

Are high valued units dispersed or parked in one location susceptible to one cause of loss? Any account with an identified concentration of values greater than $ 250,000 requires a debit of 2%.

g. Loss history

No credit can be given without proper documentation of 3 years minimum prior loss history. Company currently dated loss runs are required; debits may be applied due to no verifiable loss history. Credibility of loss experience improves as the size of the risk increases; adjustments due to loss history will be adjusted differently based on the number of power units in the experience period.

3 year loss ratio

3 to 10 powe

r units

11 to 25 power units

26 power units and over

20 % and less

-7%

-12%

-15%

21 to 30 %

-4%

-10%

-14%

31 to 40 %

-3%

-7%

-10%

41 to 50%

-1%

-3%

-4%

51 to 60%

0

0

0

61 to 70%

+ 2%

+10%

+12%

71 to 80%

+5%

+15%

+17%

Over 80%

+ 7%

+20%

+25%

CSE Safeguard Insurance Company

CA underwriting guide 0707

4

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