# 296-17B-560 - Determining your hazard group and size group

296-17B-560. Determining your hazard group and size group

(2) We will determine your size group based on your standard premiums using the table in WAC 296-17B-900.

(3) Hazard group index table.

 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.

(Amended by WSR 17-12-020, Filed 5/30/2017, effective 6/30/2017)

Statutory Authority: RCW 51.16.035, 51.16.100, 51.04.020(1), and 51.18.010. 10-21-086, § 296-17B-560, filed 10/19/10, effective 11/19/10.