Hazard Group Number | Hazard Index Number |
1 | | .16 | |
2 | | .28 | |
3 | | .50 | |
4 | | .61 | |
5 | | .83 | |
6 | | 1.00 | |
7 | | 1.40 | |
8 | | 1.85 | |
9 | | 2.64 | |
(4) Average hazard index table.
Hazard Group Number | Average Hazard Index Value is at Least: | But Less Than or Equal to: |
1 | | 0.000 | | 0.219 | |
2 | | 0.220 | | 0.389 | |
3 | | 0.390 | | 0.554 | |
4 | | 0.555 | | 0.719 | |
5 | | 0.720 | | 0.914 | |
6 | | 0.915 | | 1.199 | |
7 | | 1.200 | | 1.624 | |
8 | | 1.625 | | 2.244 | |
9 | | 2.245 | | 2.640 | |
Example:
• For your retrospective enrollment year, your group has exposure in risk classifications with Hazard Groups 3 and 6 and corresponding standard premiums of $1,000,000 and $2,000,000 during the enrollment year.
Risk Classification Hazard Group | Standard Premium | Hazard Index Number | Adjusted Standard Premium |
3 | $1,000,000 | .500 | | $500,000 |
6 | $2,000,000 | 1.000 | | $2,000,000 |
Total | $3,000,000 | | | $2,500,000 |
• The Average Hazard Index value for your group is the total adjusted standard premiums divided by the total standard premiums or $2,500,000/$3,000,000 = 0.833 to three decimal places. This value 0.833 is in the range between 0.720 and 0.914.
• Therefore, your group will be assigned Hazard Group Number 5 during this annual adjustment.
[Statutory Authority: RCW
51.18.010(2),
51.04.020. WSR 17-12-020, § 296-17B-560, filed 5/30/17, effective 6/30/17. Statutory Authority: RCW
51.16.035,
51.16.100,
51.04.020(1), and
51.18.010. WSR 10-21-086, § 296-17B-560, filed 10/19/10, effective 11/19/10.]