Merit rating is designed to credit or debit policies that are too small in premium size to qualify for our experience rating plan. Merit rating plans afford smaller policyholders the ability to earn a credit or incur a surcharge based on their claim history.
The Minimum Premium is the lowest premium for which coverage will be issued. The Minimum Policy Premium, shown on the Information Page of the policy, is the lowest premium for which coverage will be afforded. At Chesapeake Employers, the minimum policy premium is the minimum premium fully earned at policy inception. Minimum policy premium is not subject to pro-rata or short rate adjustment for short-term coverage. For other than policies cancelled flat at inception, the minimum policy premium is not refundable in the event of cancellation.