Preface

Download PDF

A. This Manual of risk classes, underwriting rules, DCRB rating values and rating plans has been filed with the Delaware Insurance Department as required by Delaware Law. It is effective 12:01 A.M., December 1, 2025, with respect to all policies, the effective date of which is December 1, 2025, or thereafter, subject to the following express conditions, for the insurance companies, corporations and associations listed herein and for no other insurance company, corporation or association.

The Delaware Compensation Rating Bureau shall hereinafter be referred to as the “DCRB”.

B. Organization of Manual

This Manual has six sections:

Section 1 – Underwriting Rules

Section 2 – Rating Values and Classifications/General Auditing and Classification Information

Section 3 – Endorsements

Section 4 – Retrospective Rating Plans

Section 5 – Experience Rating Plan

Section 6 – Merit Rating Plan

C. Definitions

The following words are referenced in House Bill 241 of 1993 or have been used in this Manual with meanings intended to be consistent with the requirements of that Act. For purposes of improving the understanding of the Manual, definitions of these words as used elsewhere in this Manual are set forth below.

  1. Data Card – DCRB Data Cards are issued by the Delaware Compensation Rating Bureau, Inc. These data cards provide the risk name, location, DCRB file number, authorized classification(s) and if applicable the risk’s experience modification for a minimum of one year.Risks approved for the Delaware Construction Classification Premium Adjustment Program and any other applicable credit programs will be shown on these data cards.
  2. DCRB Loss Costs – Dollar amounts per unit of exposure attributable to the payment of losses under workers compensation and employers’ liability coverages, filed by the DCRB based on the aggregate experience of all DCRB members and approved by the Insurance Commissioner.
  3. DCRB Rating Values – All parameters filed by the DCRB and approved by the Insurance Commissioner, and which are used either mandatorily or by option of carriers for purposes of pricing workers compensation and employers’ liability coverages. Such DCRB rating values include DCRB Loss Costs, experience rating plan values such as Expected Loss Cost Factors, Credibility, Maximum Value of One Accident, and Credibility Weighted Maximum Value Charge, retrospective rating plan values such as the Table of Expected Loss Ranges, Excess Loss Pure Premium Factors, Retrospective Pure Premium Development Factors, and expense parameters applicable to U.S.L.&H.W. coverages such as Premium Discounts, Expected Loss Ratio, Expense Ratios, Tax Multipliers and Loss Conversion Factors.
  4. Carrier Rate – The amount per unit of exposure which an insurance carrier charges for workers compensation and employers liability insurance.
  5. Carrier Rating Values – All parameters used by carriers for purposes of pricing workers compensation and employers’ liability insurance coverages. Such parameters may be either DCRB rating values adopted by a carrier for its own use or values independently determined by a carrier.
  6. Loss Cost – Dollar amounts per unit of exposure attributable to the payment of losses under workers compensation and employers liability coverages. Loss Costs may be developed either by the DCRB based on the aggregate experience of all DCRB members or may be established by individual carriers based on their own supporting information.
  7. Prospective Loss Costs – Historical aggregate losses projected through development to their ultimate value and through trending to a future point in time including all loss adjustment or claim management expenses and loss-based expenses excluding other operating expenses, assessments, taxes and profit or contingency allowances in this Manual. The term “Loss Cost” is synonymous with Provision for Claim Payment.
  8. Rating Value – A parameter or number used in pricing workers compensation or employers liability insurance coverages. Rating Values may be established by the DCRB or by individual carriers. Where individual carriers have established Rating Values different from those of the DCRB, the carrier’s values supersede those of the DCRB for purposes of that insurer’s policies.
  9. Rating Effective Date (RED) is the earliest date that a specific experience rating or merit rating adjustment is applied to a policy.