Workers’ Comp Assigned Risk Rate to Rise in Minnesota

Minnesota’s Commerce Commissioner has issued a rate order approving a 2.6 percent increase in the overall level of the assigned risk rates for workers’ compensation insurance. The increase is effective April 1, 2009, according to the Minnesota Workers’ Compensation Insurers Association Inc. (MWCIA).

Beginning April 1, the Minnesota Workers’ Compensation Assigned Risk Plan will use a pure premium multiplier of 2.50 to be applied to the pure premium base rates of the 2009 Minnesota Ratemaking Report of the MWCIA. The expense constant on each policy will continue to be $170, according to the commissioner’s order.

The policyholder surcharge to provide for expected assessments of the Special Compensation Fund will be 3 percent of premium. The policyholder surcharge for coverage provided by the Terrorism Risk Insurance Program Reauthorization Act will continue to be $0.02 per $100 of payroll.

Source: MWCIA, www.mwcia.org