Downward Deviation in Rates:

M.G.L. Chapter 152, Section 53A, Subsection (9) provides for a mechanism for companies to make downward deviations in rates.

Companies applying to the Division of Insurance to deviate downward in their workers' compensation rates should refer to the Division's Guidelines for Workers' Compensation Rate Deviation Filings which sets forth the requirements that companies must meet when making such applications. Refer to Circular Letter #2428 dated June 7, 2024.

The premium credit for downward company rate deviations, filed with and approved by the Division of Insurance, are:

• applied before the experience rating modification,
• reported under the statistical class code 9037, and
• included in Standard Premium.

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

The Department of Industrial Accidents has advised that their assessment should be applied to premiums prior to the effect of any company deviations. 
(Refer to Circular Letter #1778 dated April 9, 1997.)

Additional Reference:

Circular Letter #1842 dated March 27, 2000 - Revisions the the Massachusetts Workers' Compensation Unit Statistical Plan.

Downward Deviations for Retrospective Rating Plans:

Companies may apply for downward premium deviations attributable to the modification of one or more retrospective rating plan parameters (e.g., loss conversion factor, profit provision, other expense provisions, etc.). 
(Refer to Circular Letter #1798 dated April 22, 1998.)