Wheaton, Ill., Nov. 22, 2010--Insurers can now have access to a new plan for incorporating an account's loss experience into its commercial liability rating.

The American Association of Insurance Services (AAIS) is initiating a countrywide filing of a new experience rating plan (ERP) in its Commercial Liability Program. AAIS is a national insurance advisory organization that develops standardized policy forms and rating information used by more than 600 property/casualty insurers throughout the U.S.

AAIS's new Commercial Liability ERP provides carriers a process for selecting and applying a factor for modifying a policy's premium to reflect how a risk's loss experience over the previous three or five years compares with a benchmark for its industry.

Eligibility under the plan extends to risks that have three or five years of premium and loss data, and that pay at least $1,000 in annual premium. Manual rules and step-by-step instructions are provided for calculating the experience modification factor, and applying it to the premium for both the premises/operations and products/completed work exposures.

The plan will be filed as a manual supplement with a proposed effective date of April 1, 2011 in most states.

For information on affiliating with AAIS for use of its Commercial Liability Program, contact Rick Maka, director of marketing and strategic alliances, at rickm@AAISonline.com, or by calling 800-564-AAIS, ext. 222.
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