Preface

1. In accordance with Section 654 of The Insurance Company Law of May 17, 1921, P.L. 682, as amended and the Pennsylvania Workers’ Compensation Act of June 2, 1915, P. L. 736, as amended, the Insurance Commissioner has approved this Manual of risk classes, underwriting rules, PCRB rating values and rating plans, to become effective 12:01 a.m., April 1, 2025 with respect to all policies, the effective date of which is April 1, 2025 or thereafter, subject to the following express conditions, for the State Workers’ Insurance Fund and for the insurance companies, corporations, associations and exchanges enumerated in the attached list and for no other insurance company, corporation, association or exchange. The Pennsylvania Compensation Rating Bureau shall hereinafter be referred to as the “PCRB”.

2. Organization of Manual

   This Manual has six sections:

   Section 1 – Underwriting Rules
   Section 2 – Rating Values and Classifications/General Auditing and Classification Information
   Section 3 – Endorsements
   Section 4 – Retrospective Rating Plans
   Section 5 – Experience Rating Plan
   Section 6 – Merit Rating Plan

3. Definitions

The following words are referenced in the Pennsylvania Workers’ Compensation Act of June 2, 1915, P. L.682, as amended, (Act) or have been used in this Manual with meanings intended to be consistent with therequirements of that Act. For purposes of improving the understanding of the Manual, definitions of these words as used elsewhere in this Manual are set forth below:

1. 1. PCRB Data Card – PCRB Data Cards are issued by the Pennsylvania Compensation Rating Bureau. These data cards provide the risk name, location, PCRB file number, authorised classification(s) and if applicable the risk’s experience modification for a minimum of one year. Risks approved for the Pennsylvania Construction Classification Premium Adjustment Program and any other applicable credit programs will be shown on these data cards.
   2. PCRB Loss Costs – Dollar amounts per unit of exposure attributable to the payment of losses under workers compensation and employers liability coverages, filed by the PCRB based on the aggregate experience of all PCRB members and approved by the Insurance Commissioner.
   3. PCRB Rating Values – All parameters filed by the PCRB and approved by the Insurance Commissioner, and which are used either mandatorily or by option of carriers for purposes of pricing workers compensation and employers liability coverages. Such PCRB rating values include PCRB Loss Costs, experience rating plan values such as Expected Loss Cost Factors, Credibility, Maximum Value of One Accident, and Credibility Weighted Maximum Value Charge, retrospective rating plan values such as the Table of Expected Loss Ranges, Excess Loss Pure Premium Factors, Retrospective Pure Premium Development Factors, and expense parameters applicable to U.S.L.&H.W. coverages such as Premium Discounts, Expected Loss Ratio, Expense Ratios, Tax Multipliers and Loss Conversion Factors.
   4. Carrier Rate – The amount per unit of exposure which an insurance carrier charges for workers compensation and employers liability insurance.
   5. Carrier Rating Values – All parameters used by carriers for purposes of pricing workers compensation and employers liability insurance coverages. Such parameters may be either PCRB Rating Values adopted by a carrier for its own use or values independently determined by a carrier.
   6. Loss Cost – Dollar amounts per unit of exposure attributable to the payment of losses under workers compensation and employers liability coverages. Loss Costs may be developed either by the PCRB based on the aggregate experience of all PCRB members or may be established by individual carriers based on their own supporting information.
   7. Provision for Claim Payment – Historical aggregate losses projected through development to their ultimate value and through trending to a future point in time, but excluding all loss adjustment or claim management expenses, other operating expenses, assessments, taxes and profit or contingency allowances. In this Manual the term “Loss Cost” is synonymous with Provision for Claim Payment.
   8. Rating Value – A parameter or number used in pricing workers compensation or employers liability insurance coverages. Rating Values may be established by the PCRB or by individual carriers. Where individual carriers have stablished Rating Values different from those of the PCRB, the carrier’s values supersede those of the PCRB for purposes of that insurer’s policies.
   9. Rating Effective Date (RED) is the earliest date that a specific experience rating or merit rating adjustment is applied to a policy.

The Pennsylvania Compensation Rating Bureau shall hereinafter be referred to as the “PCRB”.