SECTION II - DEFINITIONS

The term “risk” as used in this Plan shall mean

1. 1. A single legal entity.
   2. Two or more affiliates which qualify for combination under the rules of Section III of this Plan.

The term “legal entity” or “entity” shall mean an individual, partnership, corporation, unincorporated association or fiduciary (e.g., trustee, receiver, executor or administrator). Divisions or similar units of a legal entity do not qualify as separate entities.

The term “affiliate” shall mean entities in each of which the same entity or group of entities own a majority interest.

For the purpose of this Plan, experience shall mean the record established by a risk under workers compensation and employers’ liability Insurance, as disclosed by the losses incurred by the insurance carrier or carriers and the payrolls or other exposures segregated according to classification of operations.

If the classification assigned to a risk is revised or modified, for the purpose of this Plan the PCRB shall similarly reassign the classification of the experience period except that, if the revision is due to a change in operations, no part of the experience period prior to such operations change shall be affected.

Note: For special provisions applicable to self-insurers’ data see Rule 6 of Section III.

Any determination or decision of the PCRB for an individual risk under the Pennsylvania Experience Rating Plan may be appealed pursuant to RULE XVI, APPEALS FROM APPLICATION OF THE RATING SYSTEM PROCEDURE, Section 1 of this Manual.

is the earliest date that a specific experience modification is applied to a policy.