RULE VII – PREMIUM DISCOUNT

Item 4 of the Information Page.

Premium Discount (if any) is determined by an individual carriers’ rating values. It recognizes that the relative expense of issuing and servicing larger premium policies is less than for smaller premium policies.

1. Combination Permitted
   Two or more policies issued to the same insured by one or more insurance carriers under the same management may be combined for the purpose of computing the premium discount for that insured.
2. Combination Procedure
   If such separate policies have different expiration dates, the combination for the purpose of 1. above is subject to the following:
   a. The DCRB shall determine the effective date for the application of premium discount.

   b. All such policies in force prior to such effective date shall be cancelled and rewritten as of the effective datec. All policies effective after the effective date of the combination shall be written to expire concurrently with other policies in the combination.

The first step in setting up a “W rap-Up” program requires the carrier to make application to: State of Delaware Department of Labor, Industrial Accident Board, 4425 North Market Street – 3rd Floor, Wilmington, DE 19802.

The following application of the premium discount is optional for large construction projects which are not under a retrospective rating plan:

Policies issued to two or more legal entities engaged in a construction, erection or demolition project may be combined for the purpose of computing premium discount, subject to the following conditions:

1. Insurance CarrierAll such policies must be issued by one or more insurance carriers under the same management. 
2. Policy LimitationThe policies shall be limited to insurance on such large construction projects.
3. Eligible EntitiesEntities eligible for combination shall be limited to the general contractor (including any owner or principal acting as a general contractor) and subcontractors performing work under contracts let on an ex-insurance basis. In addition, if the contract between the owner or principal and such general contractor is on an ex-insurance basis, the owner or principal shall be an eligible entity under this rule. 
4. Premium RequirementEstimated total standard premium for the project to be done by the combined entities must be$500,000 or more.
5. Location RequirementThe project must be confined to operations at a single location. In connection with the building of roadways, tunnels, waterways or surface or underground conduits, the entire job or sections of the job shall be considered a single location if the construction work is performed by a single general contractor for a single owner or principal.
6. Duration RequirementThe project must be of definite duration involving work to be performed continuously to completion.
7. DCRB NotificationThe DCRB must be notified of the method by which the wrap-up policies will be identified.
8. Separate Policy RequirementA separate policy is required for each entity included in the wrap-up plan and each policy is subject to that entity’s own experience rating modification.
9. Experience ModificationsThe experience developed by each entity in the combinations will be used in calculating the future experience of the entity. There will be no experience rating for the project as a unit.