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Qualified Loss Management Program (QLMP)


Application of the QLMP credit is restricted to guaranteed cost policies (including those with a small deductible endorsement) for employers in the Pool or for employers who qualified for a credit in the Pool but have since moved to the voluntary market. Employers taken out of the Pool on a Large Deductible Program, Large Risk Rating Option or other voluntary market retrospective rating plan, are not eligible for credits under the Qualified Loss Management Program. (Refer to Circular Letter #1649 dated September 1, 1993.)

The purpose of this innovative Qualified Loss Management Program is to apply a prospective credit, for a period of up to four years, to the premium of assigned risk insureds who subscribe to a qualified loss management firm, and remain in such firm's Loss Management Program during that period. A number of management firms have demonstrated an ability to significantly reduce workers' compensation losses for their client employers by implementing loss control management programs. (Refer to the list of approved QLMP management firms effective April 1, 2024.

Utilization of this program will enable a subscribing employer to receive the immediate impact of anticipated improved experience as early as the inception date of the first annual policy during which the subscribing employer completes a minimum of six months participation in the Program. The appropriate credits are applied to the premiums for four annual policy periods, at the conclusion of which, the credits then end and the subscribing employer enters into an experience rating period with anticipated improved experience.

The QLMP credit is applied at policy audit to the Massachusetts portion of the Premium Subject to QLMP. Refer to the Massachusetts Voluntary Market Premium Algorithm, Appendix E, or the Residual Market Premium Algorithm, Appendix F. The premium credit amount under this Program is reported under the statistical class code 9880. The amount of the credit applied to a policy year is based on the credit factor assigned to the loss management firm and in effect on each policy effective date, except that the applicable credit is halved in the third year, and one quarter of the otherwise applicable credit is applied in the fourth year of participation.

The eligibility of a Loss Management Program for a credit and the size of the allowable credit will be subject to the approval of the WCRIBMA. Any loss management firm, which has demonstrated an ability to reduce losses for its client employers, may submit a Loss Management Program to the WCRIBMA for approval, subject to its having met minimum qualifications.

The Massachusetts Qualified Loss Management Program Endorsement (WC200402A) must be attached to each assigned risk policy for which a credit is given under this Program. Endorsement WC200402A can also be applied to an eligible voluntary market policy.

For a copy of the Request for Massachusetts Qualified Loss Management Program Assigned Risk Credit form, refer to the Applications and Forms page.

For more information on this Program, refer to the Massachusetts Workers' Compensation and Employers Liability Manual, Part One, Special Programs, Qualified Loss Management Program (QLMP).

Program References:

January 1, 1994 - The Qualified Loss Management Program was revised to provide that 25% of the otherwise applicable credit be applied to the workers' compensation premium for a fourth year of participation in the Program.
Refer to Circular Letter #1662 dated January 14, 1994, Circular Letter #1665 dated January 26, 1994 and Circular Letter #1667 dated February 10, 1994.

April 1, 1993 - The Qualified Loss Management Program was revised, in that, no policy subject to Massachusetts Assigned Risk Rating Plan (MARRP) shall be considered for adjustment of deposit premium based on an employers' participation in the Qualified Loss Management Program (QLMP), unless the appropriate Certification of Participation indicates that the participating employer has entered the QLMP prior to the effective date of the policy for which the credit against deposit premium is to be applied.
Refer to Notice To All Servicing Carriers dated March 10, 1993.

January 1, 1993 - The Qualified Loss Management Program was revised:

  • to provide for continuation of the credit when a subscriber moves to the voluntary market,

  • to recognize the existence of the Massachusetts Assigned Risk Rating Plan (MARRP), and

  • to increase the maximum credit to 15%.

Refer to Circular Letter #1620 dated January 7, 1993, Notice To All Servicing Carriers dated January 7, 1993, Circular Letter #1622 dated January 14, 1993, Notice To All Servicing Carriers dated April 13, 1993 and Circular Letter #1641 dated July 2, 1993.

The Qualified Loss Management Program (Revised 3/91) replaced the Program, as filed effective November 1, 1990. (Refer to Circular Letter #1566 dated April 30, 1991.)

November 1, 1990 - The Division of Insurance approved a Qualified Loss Management Program applicable to assigned risk insureds. This Program allows a credit (maximum 10%) for the first three years that the Program is in effect for the employer.
Refer to Circular Letter #1550 dated November 5, 1990 and Notice To All Servicing Carriers and Agent Trade Association Representatives dated November 21, 1990.





Program Overview

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