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Compensable-Claim-Free Experience Rating

For firms with no compensable claims (timeloss, partial permanent disability, total permanent disability or death) during the three-year Experience Period the maximum experience factor is specified in the WAC 296-17-890 (www.leg.wa.gov) that depends on the expected loss size of the firm. These factors, which vary from 60% to 90%, reflect the superior subsequent performance of such firms that has been observed in historical data. They represent a Claim-Free Discount of 10% to 40% from the Base Class Rates for these firms.

Approximately 80% of all Washington firms are eligible for these factors each rating year. However, these firms represent only 20% of the assessed premiums each year, so the majority of these firms are small.

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