Are there penalties for failure to respond to discrepancy reports produced by the Experience Rating System?
Failure to provide CAR with notification of a ceded policy’s experience rating status within the proscribed timeframes will result in the assessment of penalty fees. The amount of a penalty is dependent upon the receipt date as follows: • 121-150 days from the policy effective date – $25 • 151-180 days from the policy effective date – $50 • 181-210 days from the policy effective date – $75 • 211 or more days from the policy effective date – $100 Reports are produced on a quarterly basis from the Experience Rating System. These reports compare information contained on the experience rating file to data which has been statistically reported. Policies found to be eligible for experience rating based upon their statistical data for which a corresponding record is not found on the experience rating file are listed and provided to the Servicing Carrier for resolution. Resolution of this discrepancy can be the submission of the appropriate information to the experience rating file, correction
