When to use the Rate Change Endorsement.
When to Use
A carrier only needs to use the Rate Change Endorsement (WC 00 04 07) if the carrier used the Pending Rate Change Endorsement (WC 00 04 04) when it issued the policy. Indiana rate filings are for new and renewal business, so this endorsement is not needed for outstanding policies.
Exception: The Rate Change Endorsement does apply for policies affected by the Indiana law only advisory rate filings effective 7/1/1997, 7/1/1999, and 7/1/2000 to outstanding policies.
Q & A
What if the carrier failed to attach the Pending Rate Change Endorsement at policy issuance or later failed to endorse the policy with the Rate Change Endorsement after the rates were approved?
Apparently, there’s no law or rule in Indiana to prevent the carrier from applying the correct rates. The Forms Manual, WC & EL Policy section, page 5, Part Five-Premium, Rule E. Final Premium states that “The final premium will be determined after this policy ends by using the actual, not the estimated, premium basis and the proper classification and rates that lawfully apply to the business and work covered by this policy. If the final premium is more than the premium you paid to us, you must pay us the balance. If it is less, we will refund the balance to you.”