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Premium Discount


Voluntary policies developing Standard Premium in excess of $10,000 are subject to premium discount.

Premium discount recognizes that there are fixed costs associated with issuing and servicing policies, therefore the relative expense of issuing and servicing larger premium policies is less than for smaller premium policies.

The premium discount percentage is selected from one of two tables. Effective May 1, 1996 carriers must elect either the Type A Carriers or the Type B Carriers Premium Discount Table and advise the WCRIBMA at least ten days in advance of the date that such election is to become effective. Different elections may be made for each insurer in a group. Elections shall be revocable after at least one year has elapsed since the election became effective. In the event the premium discount percentages are changed, all elections shall terminate as of the effective date of the change, and new elections must be made.

The Premium Discount Table  displayed below for Type A Carriers and Type B Carriers is the abbreviated table.  The complete tables are located in Appendix B of the Massachusetts Manual. 

To calculate premium discount, apply the appropriate discount percentage to the policy's Standard Premium. Refer to the Massachusetts Voluntary Market Premium Algorithm, Appendix E. Premium discount credit derived from the Type A Carriers Premium Discount Table election is reported under the statistical class code 0063. Premium discount derived from the Type B Carriers Premium Discount Table election is reported under the statistical class code 0064.

For more information on Premium Discount, refer to the Massachusetts Workers' Compensation and Employers Liability Insurance Manual, Part One, Rule VII - Premium Discount.

Premium Discount References:

May 1, 1996 - New premium discount tables were approved.  (Refer to Circular Letter #1750 dated May 6, 1996.)

January 1, 1991 - Premium Discount was eliminated for Assigned Risk insureds.  (Refer to Circular Letter #1548 dated November 5, 1990, Circular Letter #1555 dated January 2, 1991 and Notice to All Servicing Carriers dated December 7, 1990.)

Abbreviated Premium Discount Table
  >   Type A Carriers Type B Carriers
First $ 10,000 0.0% 0.0%
Next $ 190,000 9.1% 5.1%
Next $ 1,550,000 11.3% 6.5%
Over $ 1,750,000 12.3% 7.5%



Program Overview

The Workers' Compensation Rating and Inspection Bureau of Massachusetts
101 Arch Street, 5th Floor
Boston, MA 02110