Assigned Risk Adjustment Program – Term Of The Day
The assigned risk adjustment program is an additional debit charge placed on Assigned Risk policies with experience modification factors higher than 1.00.. It is applicable to the NCCI jurisdiction states.
The notable exception is Massachusetts, where ARAP stands for All Risk Adjustment Factor. This is a surcharge that increases premiums over and above the experience modifier, and in MA the ARAP can be levied against all employers, not just those in the Assigned Risk Plan.
If you are in an Assigned Risk Plan, it is advisable to examine your policy to see how much the debit was that you incurred from the ARAP.
That figure alone has made many employers pump more funds into their safety programs. One clarification that needs to be made here is that being in an assigned risk pool may not originate from being a high risk employer.
Certain markets such as truckers and temp to perm employment agencies do not have carriers willing to write their WC coverage in the voluntary market. As I have said very often, get out your policy and read it over even if it is in the assigned risk pool.
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