The authority for companies to make downward deviations in rates is provided in M.G.L. Chapter 152, Section 53A, Subsection (9).

The Division of Insurance's Guidelines for Workers' Compensation Rate Deviation Filings states:

"Workers’ compensation insurance companies should be aware that the Division regards certain rating plans, including some plans referred to as 'dividend plans', 'retention plans', 'installment plans', 'retrospective rating plans', or 'deferred payment plans' as operating, at least in part, as rate deviations, and as therefore being subject to prior approval by the Division. In particular, any program guaranteeing or otherwise promising premium reductions at any time, and any program allowing for the return of, or reduction in, premium during the policy period, are viewed by the Division as a rate deviation, that must be submitted for approval prior to use."

Refer to Circular Letter #2366 dated April 8, 2020 for the Division's Guidelines for Workers' Compensation Rate Deviation Filings which sets forth the requirements that companies must meet when making such applications.  For additional info refer to Circular Letters #2386 dated April 20, 2021.

Premium credits associated with scheduled rating plans, filed with and approved by the Division of Insurance, are:

• subject to experience rating, and
• reported under the statistical class code 0887, and
• included in Standard Premium.

Refer to the Massachusetts Voluntary Market Premium Algorithm, Appendix E.

Additional Reference:

Circular Letter #1842 dated March 27, 2000 – Revisions to the Massachusetts Workers’ Compensation Unit Statistical Plan