SECTION II – DEFINITIONS
Risk
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A single legal entity.
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Two or more affiliates which qualify for combination under the rules of Section III of this Plan.
Legal Entity
Affiliate
The term “affiliate” shall mean entities in each of which the same entity or group of entities own a majority interest.
Experience
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.
Compensable Employee Lost-Time Injury
Rating Effective Date (RED)
is the earliest date that a specific merit rating adjustment is applied.
Merit Rating Plan Discount
The term “Merit Rating Plan discount” for purposes of this Plan shall mean a reduction in the subject premium developed by the use of the carrier rates in force on the RED applicable to the policy to which the Merit Rating Plan is applied.
Merit Rating Plan Surcharge
The term “Merit Rating Plan surcharge” for purposes of this Plan shall mean an increase in the subject premium developed by the use of the carrier rates in force on the RED applicable to the policy to which the Merit Rating Plan is applied.
Merit Rating Plan Adjustment
The term “Merit Rating Plan adjustment” for purposes of this Plan shall mean either a Merit Rating Plan discount or a Merit Rating Plan surcharge.