Class 7370
Applies to taxicab drivers and all other employees except those employees who qualify for separate classifications such as garage employees, clerical employees and outside salespersons. Garage employees are to be separately rated to Code 8385.
The conditions outlined in Code 7370's footnote regarding “leased” taxicabs are subject to Section 1(4) of Chapter 152 of the Massachusetts Workers' Compensation Law, which states: A person who operates a taxicab vehicle which is leased by such person from a taxicab company pursuant to an independent contract which specifically provides for a rental fee or other payment to the owner of such taxicab vehicle which is in no way related to the taxicab fares collected by such person, and provided, further, that such person is not treated as an employee for Federal tax purposes, is exempt from Workers' Compensation.
It is the carrier's responsibility to determine if the taxicab drivers are employees or independent contractors for workers compensation purposes. If it is determined that the taxi drivers are employees, and verifiable payroll records are available, the carrier should determine premium in accordance with Rule V—Premium Basis of the MA Manual.
In the event that vehicles are being operated by employees, the premium is calculated based on the amount indicated in the “Employee operated vehicles” section of the Miscellaneous Values. This amount is subject to pro rata adjustment only when a vehicle is owned by the employer for a portion of the policy period. If a vehicle is being leased or rented to others and as a result of this leasing or rental, the carrier incurs a workers compensation exposure, the premium is calculated based on the “Leased or rented vehicles” section of the Miscellaneous Values. This amount is subject to pro rata adjustment only when the lease is for a portion of the policy period.
As stated previously, Miscellaneous Values must be used only in the absence of verifiable payroll records. The amounts shown in the Miscellaneous Values of the MA Manual are based on the state's average weekly wage.
The cross-reference phraseology “Limousine Co.—All Other Employees & Drivers—Nonscheduled” applies to insureds providing car service, livery and limousine services on a call basis, much in the same manner as a taxicab company. Refer to Code 7382—Limousine Companies—Scheduled whenever such service is booked in advance.
Code 7370 also applies to ambulance service companies, which are not operated by hospitals. Garage employees for these businesses are assigned to Code 8385—Garage Employees.
Code 7370 is not intended for drivers (chauffeurs) employed by employers that are not in the business of transporting the public. Refer to Code 7380 for a description of these chauffeurs and the basis for assigning them to Code 7380.
Class 7370
The entire remuneration of all taxicab drivers shall be included in computing the premium. In the absence of verifiable payroll records, the premium charged will be determined on the basis of the amount per vehicle per policy year for employee operated vehicles shown in the rate pages under Miscellaneous Values. This amount is subject to pro rata adjustment only when a vehicle is owned by the insured for a portion of the policy period. If the owner also leases or rents such vehicles to others, an additional premium shall be calculated on the basis of the amount per vehicle per policy year for leased or rented vehicles shown in the rate pages under Miscellaneous Values. This amount is subject to pro rata adjustment only when the lease is for a portion of the policy period. These amounts are in consideration of gratuities, multiple shifts, downtime, vacation time or other periods during which the vehicle is not in operation.