I. Instructions

1. The rules of this Plan shall govern the schedule rating procedure to be followed in connection with Workers Compensation and Employers' Liability Insurance. These rules have been prepared as applicable to all policies written or issued for a period that is more than one year but not more than one year and sixteen days. Such policies shall be considered as one year policies.
2. The effective date of any change to this Plan is 12:01 a.m. on the date specified on the manual page. Any change will be issued on a reprinted page and will be designated by a (*).
3. Unless specified otherwise, this Plan and any changes made hereafter apply only from the policy effective date which occurs on or after the effective date of the Plan or change, but shall not otherwise be available to outstanding ratings.
4. As provided in the Workers Compensation and Employers' Liability Policy, the Accident Fund Insurance Company of America has full authority to verify any or all characteristics of the insured for use in establishing the applicable schedule modification under the Plan.

II. Definitions

1. Entity
   The term "entity" shall mean an individual, partnership, limited liability company, corporation, association or fiduciary (e.g., trustee, receiver, executor or administrator), or other legal entity.
   
   
2. Risk
   The term "risk" as used in this Plan shall mean:
   1. A single entity.
   2. Two or more entities which qualify for combination under Rule III-A-4 of the "Rules" pages and the insurance is provided by one policy.
   
   
   
3. Characteristics
   For the purpose of this Plan, "characteristics" shall mean the feature, conditions, practices and procedures under which the risk is expected to occur during the policy period. To the extent that the characteristics of the risk are more or less than contemplated by the manual rate or are not reflected in its experience rating, the standard premium may be modified in accordance with this Plan.

III. General Provisions

1. Eligibility Requirements
   A policy may qualify for rating under this Plan when the estimated annual standard premium is $1,000 or more.
   
2. Change of Control, Management, Operations or Ownership
   A change of control, management, operations or ownership may change the Accident Fund Insurance Company of America evaluation of characteristics underlying the schedule rating modification, and the Accident Fund Insurance Company of America may accordingly adjust or discontinue the modification.
   
3. Evaluation of Characteristics
   The extent to which the prospective characteristics of a risk are more or less than contemplated by the manual rate(s) or are not reflected in its experience shall be based upon a review and evaluation of the characteristics of the risk. Information for this review and evaluation will be obtained from information supplied by the insured, agent or a loss prevention specialist of the Accident Fund Insurance Company of America.
   
4. Consideration of Unnecessarily Hazardous Risks
   The Accident Fund Insurance Company of America will try to insure risks with unnecessary or excessive exposure to loss, subject to debit schedule rating, provided the applicant insured is willing and able to implement practical changes which will reduce the exposure to the range expected by the rate(s) for the applicable classification(s) and provided the policy premiums will finance the expense of consultative loss prevention service by the Accident Fund Insurance Company of America.
   

IV. Premium Modification Schedule

The standard premium for a risk may be modified in accordance with the following subject to a maximum modification of 25 percent.

   

Characteristics	Range of Modification
	Credit  to Debit
A. Premises - Conditions, Care	10% to 10%
B. Risk/Class Hazard Relativity or Peculiarity	10% to 10%
C. Management and Safety Practices	10% to 10%
D. Employees - Selection, Training, Supervision	10% to 10%
E. Equipment Guarding and/or Safety Devices	10% to 10

V. Application of Schedule Modification

1. The algebraic sum of the schedule credit(s) or debit(s) shall be applied to the standard premium in a multiplicative manner and before application of premium discounts and expense constant.
   
2. To the degree that the insured corrects the reason for any schedule debit to the satisfaction of the Accident Fund Insurance Company of America, the debit will be removed from the rating effective within 31 days thereafter.