Wisconsin Auto Insurance Plan – Commercial, continued from http://1reason.com/commercial-auto/wisconsin-automobile-insurance-plan-commercial-auto-premium-calculation/
RULE 54. EXPERIENCE RATING PLAN
The following risks are eligible for experience rating:
1. five or more private passenger or commercial autos, or
2. three or more public autos that generate an annual Manual premium of at least $5,000 on a $25,000 combined single limit basis, or
3. nonowned auto exposures that generate an estimated annual Manual premium of at least $5,000 on a $25,000 combined single limit basis.
B. Experience Used
The experience modification shall be determined from the latest available three years’ loss history and the corresponding bodily injury and property damage annual premiums adjusted to CSL basic premiums. The experience period shall end at least six months prior to the rating date. In the event the experience for the full experience period is not available, at least one completed policy year shall be used.
Experience incurred by companies other than the company establishing the rating of self-insured experience may be used subject to the periods specified above. If the risk has been self-insured or insured with a company from which the experience is not obtainable, the experience may be used if submitted to the company in the form of a statement signed by the insured. The servicing carrier has the right to reject such experience data.
C. Determination of Experience Modification
1. Basic Limits Premium Subject to Experience Rating
a. Determine the current annual Manual $60,000 combined single limit premium for the policy.
The headquarters location of the risk shall govern the application of this Plan for all nonowned auto liability exposures regardless of the location.
b. Divide the $60,000 CSL premiums by the following factor to convert them to $25,000 CSL basic limits premiums.