WSI may offer premium dividends to eligible North Dakota employers. Dividends are governed by North Dakota Century Code § 65-04-02. The premium dividend credit will not apply to minimum premium accounts or accounts that are delinquent, non-compliant, or unsatisfactory as determined by WSI. The premium dividend credit will not apply to the large deductible aggregate excess premium component.
Experience rating is a projection of future losses using the employer’s past claims history. An employer's individual experience rate directly impacts the amount of premium charged. While the rate classification system provides for the distribution of premium to various industries and exposures, WSI's experience rating program focuses on premium load within a given industry. Generally, employers with a good loss history are rewarded with premium discounts. Employers with a poor loss history are charged premium above the manual rates. Surcharges have no limits.
Qualifications for experience rating:
- Beginning with an employer's fifth year of North Dakota operations, accounts may be experience rated.
- Have a minimum aggregate premium of $15,000 over the 3-year experience rating period.
WSI's Small Account Credit/Debit program is applicable to all policyholders that do not qualify for experience rating. The goal of this program is to create incentives for small businesses to manage their claims and implement safety programs. An account must be in their fifth year of operation in order to qualify for this program and cannot have a total premium of $15,000 or more during the 3-year look back period. If an account has total premium of $15,000 or more, it would qualify for experience rating.
- Annually, WSI will automatically identify qualifying policyholders based on established premium and policy periods.
- Any claim under $250 will not have an effect on the premium.
- If there are no claims over $250, the account will receive a 10% discount (credit).
- If there is one claim over $250, no discount or surcharge will be applied.
- All additional claims over $250 will result in a debit (surcharge) of 5% per claim up to a maximum of 25%.
- Discounts may not reduce the premium below the statutory minimum premium of $250.
An employer is able to reduce premiums in exchange for agreeing to reimburse WSI for all losses up to a specified deductible amount. Eligibility for participation in the Large Deductible Program is based on the financial stability and resources of the employer. Since employers retain losses below the specified deductible amount, the total cost of such a plan is highly sensitive to losses.