The purpose of this Program is to encourage the depopulation of the Massachusetts Assigned Risk Pool. The Program allows all insurance carriers in Massachusetts to receive a credit against their assessment base for every dollar of premium removed from the Massachusetts Assigned Risk Pool. The credit will be an offset to the carrier's residual market assessment base. A carrier can obtain a take-out credit by removing a risk with a retrospective rated policy.

The credit is effective for a maximum period of three years and must be reported to the WCRIBMA annually at the time of the Aggregate Financial Data Call Reporting to receive the credit.

If the carrier writes the risk as voluntary business three years, the carrier will receive a credit for each of the three years. The carrier will receive a credit for only that period of time during which it covered the risk in the voluntary market. However, in no instance will the carrier receive a credit for a risk returned to the Pool within one policy year of having been taken out.

The carrier will not receive credit for any policy removed from the Pool within one calendar year of the carrier, or a member of that carrier's group, writing the policy in the voluntary market. Any carrier, other than the last voluntary carrier of record, may remove a policy without any restriction on the length of time the policy resided in the residual market. For purposes of this rule, these requirements apply to a carrier's group as well as to the carrier itself.

Under the January 1, 1993 Revised Massachusetts Take-Out Credit Program, a carrier that removes a risk from the Massachusetts Workers' Compensation Assigned Risk Pool shall be eligible for a take-out credit applicable to its residual market assessment base in accordance with the following schedule:

Program References:

Calendar Year 1999 - Carriers are required to submit only one annual Take-Out Program Credit Report. (Refer to Circular Letter #1652 dated September 10, 1993, Circular Letter #1670 dated February 18, 1994, Circular Letter #1676 dated April 29, 1994, Circular Letter #1722 dated August 11, 1995 and Circular Letter #1826 dated August 17, 1999.)

October 7, 1993 - The State Rating Bureau has advised their position that no Take-Out Credits will be processed on risks taken out of the Pool and written under a Large Deductible Program, whether or not the insured has refused a guaranteed-price policy. (Refer to Circular Letter #1654 dated September 23, 1993.)

January 1, 1993 - The Division of Insurance approved a Revised Massachusetts Take-Out Credit Program. Under this revision, an insurer that removes a risk with a premium of $150,000 or more from the Massachusetts Workers' Compensation Assigned Risk Pool will be subject to a revised credit schedule. (Refer to Circular Letter #1618 dated January 7, 1993, Circular Letter #1623 dated January 27, 1993 and Circular Letter #1646 dated July 30, 1993.)

March 1, 1991 - The Division of Insurance approved the Massachusetts Take-Out Credit Program. (Refer to Circular Letter #1562 dated February 14, 1991 and Circular Letter #1564 dated March 29, 1991.)