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The plan cannot be based on any prior loss experience your business has had. However, it can take into consideration that the insurer does not feel that your experience modification factor truly reflects your risk.
For instance, if the insurer believes that clean, welllit premises lead to fewer losses, and you have a clean, welllit plant, the insurer can offer you a discount on your premium. The maximum discount or surcharge allowed is ±35% in 1999. The limit will be ±25% effective 1/1/2000.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified insurance lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local insurance attorney to discuss your specific legal situation.