What is the $1,510 deduction used for non-compensable claims?
For rating year 2007 we are proposing to reduce the cost of non-compensable claims in the Experience Factor calculation by the lesser of $1,510 or the cost of the claim. The deduction of $1,510 is twice the average cost of a non-compensable claim. This change will help to ensure that small claims entering the recent claims experience cause small increases to the Experience Factor. The use of this deduction will remove approximately 70% of the non-compensable claim costs from the Experience Rating calculation.
