Wisconsin Automobile Insurance Plan premium development.
In order to calculate the proper premium for commercial auto through the plan, we engage in a multi-part process of calculation based on the following:
A. Calculate the appropriate base rate from the premium development rule.
B. Determine the appropriate types of vehicles used in the operation.
1. All eligible trucks, tractors, and trailers are rated under (surprise surprise) trucks, tractors, and trailers area, with notable exceptions including:
a. Nonfleet trucks with load capacities of 2,000 pounds or less owned by an individual or a married couple who are residents of the same household, and not customarily used in the occupation, profession, or business of the insured other than in the course of driving to or from work, are rated under the private passenger chapter.
b. All other personal use trucks are under the private passenger types chapter.
2. Private passenger autos that are part of a fleet are rated under the private passenger types.
3. All eligible public transportation autos are rated under the public transportation area.
4. All eligible commercial nonowned exposures are rated under the Nonowned Auto.
Exception: All named nonowner policies are rated under the Private Passenger Chapter.
5. All other eligible commercial autos are rated under the Special Types and Operations Chapter.
C. Bodily Injury and Property Damage Liability Coverage
1. If increased limits (Rule 52) apply, multiply the rate determined above by the appropriate factor.
2. Refer to experience rating plan (Rule 54), merit rating plan (Rule 55), and gross receipts (Rule 56) for applicability.
D. Uninsured and Underinsured Motorists Coverage
Refer to Rule 57 for determination of the appropriate premium.
E. Medical Payments Coverage
Refer to Rule 58 for determination of the appropriate premium.
RULE 52. INCREASED LIMITS
Note: For factors for limits required by law that are not shown, refer to Rule 2.
Optional Single Limits
The increased limits table below shows the factors to be applied to the $60,000 single limit liability rates to determine the premium for other limits written in accordance with the Extent of Coverage Section (Section 21) of the Plan.
| Single Limits |
Limit Codes | Light and Medium Trucks | Heavy Trucks and Truck-Tractors | Extra Heavy Trucks and Truck-Tractors | Zone Rated Risks | All Other Risks |
| $ 100,000 | 10 | 1.12 | 1.14 | 1.14 | 1.14 | 1.12 |
| 200,000 | 12 | 1.30 | 1.34 | 1.35 | 1.36 | 1.31 |
| 350,000 | 15 | 1.47 | 1.52 | 1.57 | 1.58 | 1.48 |
| 500,000 | 16 | 1.60 | 1.66 | 1.73 | 1.75 | 1.60 |
| 750,000 | 17 | 1.74 | 1.84 | 1.91 | 1.97 | 1.73 |
| 1,000,000 | 18 | 1.85 | 1.97 | 2.06 | 2.14 | 1.82 |
| 1,500,000* | 19 | 2.00 | 2.15 | 2.25 | 2.39 | 1.94 |
| 2,000,000* | 20 | 2.10 | 2.27 | 2.39 | 2.57 | 2.03 |
| 2,500,000* | 21 | 2.18 | 2.38 | 2.50 | 2.72 | 2.10 |
| 3,000,000* | 22 | 2.25 | 2.45 | 2.59 | 2.84 | 2.17 |
| 3,500,000* | – | 2.30 | 2.52 | 2.66 | 2.94 | 2.21 |
| 4,000,000* | – | 2.34 | 2.57 | 2.72 | 3.01 | 2.25 |
| 4,500,000* | – | 2.38 | 2.62 | 2.77 | 3.08 | 2.28 |
| 5,000,000* | 23 | 2.45 | 2.70 | 2.86 | 3.22 | 2.34 |
*Available only if required by law and only if reinsurance is not available.
RULE 53. EXCESS LIMITS—FACULTATIVE REINSURANCE (A) RATES
A. Insurance in excess of $1,000,000 combined limit of liability will be provided to any applicant subject to a mandatory limit of liability requirement of any governmental body (federal, state or other political subdivision). Such coverage shall be provided in a single policy applying to all owned autos and at the highest limit of liability required.
B. When insurance in excess of $1,000,000 combined limit of liability is requested by an applicant, the servicing carrier shall attempt to obtain facultative reinsurance for such excess limits, and the charge shall be passed on to the insured, in addition to the premium for the $1,000,000 CSL developed in accordance with the rules of this Manual. The additional charge is determined by dividing the net facultative reinsurance premium by .70 to develop the gross reinsurance charge to be added. Reinsurance premiums as calculated in this paragraph are due and payable when billed and are not subject to installment payments nor to pro rata or short rate cancellation.
C. If the Plan is required to afford limits in excess of $1,000,000 combined single limits without benefit of reinsurance, the premium for such limits shall be “a” rated and filed with the Office of the Commissioner of Insurance for prior approval.
Continue to RULE 54. EXPERIENCE RATING PLAN