Does the 1.2 adjustment factor in the exposure base raise members premiums?
No. All WCRA members’ exposure bases have included the 1.2 adjustment factor since 1984. This factor does not raise members’ premiums because the rates charged by the WCRA are at lower levels (consistent with pre-1984 rates) because of the 1.2 factor. WCRA rates are set in order to collect enough premiums to cover projected losses and expenses. These projected costs are independent of the 1.2 adjustment factor.
