Special Notice - NY and PA Calculations

SPECIAL NOTICE CONCERNING
NEW YORK AND PENNSYLVANIA CALCULATIONS

Brentwood, TN, November 29, 2001 - This notice contains important information concerning recent changes in the calculation of the experience rating modification factor in the states of NY and PA. ModMaster users who perform calculations in either of these states should read carefully for instructions.

New York
On November 21, 2001, the New York Compensation Insurance Rating Board released bulletin R.C. 1990. This bulletin outlines a plan to incorporate the treatment of claim and loss data emanating from the terrorist acts of September 11, 2001. All claims reported with Catastrophe Number 48, as defined in RC bulletin 1989, dated November 12, 2001, will be excluded from New York data for purposes of experience rating. Therefore, when computing a mod using ModMaster, exclude these claims from the data entered.

Pennsylvania
Effective January 1, 2002, according to bulletin number 1418, the PCCPAP will no longer impact the calculation of the experience modifier. Prior to January 1, 2002, the PCCPAP reduced expected losses and thus increased the experience modifier. You should not enter a PCCPAP credit into ModMaster for mods with an effective date of January 1, 2002 or later.

We are in the process of determining how to best alter ModMaster to accommodate and remind you of these new rules. Please watch for more about this in future updates. Until further notice, however, you must be careful to simply not enter any data which is applicable to these rules.

Bulletin References
New York
http://www.nycirb.org/

Pennsylvania
http://www.pcrb.com/shared/p_contents.htm