Split rating period

In some lines of business, such as Workers’ Compensation, rating can be split into multiple rating periods. PolicyCenter creates multiple rating periods around split dates specified by the user. Split dates are specified by jurisdiction.

For user-defined split dates, the Split Rating Period modifier check box determines whether PolicyCenter applies the same or separate modifier values for each rating period. If the Split Rating Period check box is selected, then PolicyCenter establishes the rating periods and splits the exposures for each. It then calculates the policy premium separately for each rating period.

If a split rating period applies, regulatory authorities for the jurisdiction notify the insurer. PolicyCenter stores this information as part of the policy information for that jurisdiction.

Using the ExpMod modifier as an example, assume that Split Rating Period is selected. For this modifier, the user can specify separate experience modifier values for each rating period. The following example illustrates this use of experience modifiers.

Sample policy
Policy Term	1/1/2013 to 1/1/2014
Split date	7/1/2013
Modifier	ExpMod
ExpMod modifiers provided by Jurisdiction	1. Effective 7/1/2012 = 1.10 2. Effective 7/1/2013 = 1.05
Modifier pattern	Split Rating Period selected
Policy rating
1/1/2012 to 7/1/2013	ExpMod 1.10 applies
7/1/2013 to 1/1/2014	ExpMod 1.05 applies