Beacon provides Rhode Island policyholders with workers’ compensation insurance at the most competitive price consistent with the long-term financial stability of Beacon. Although payment in full at inception is in Beacon’s financial best interest, Beacon recognizes that payment in full of the policy premium at inception is not always feasible to the policyholder. It is the desire of Beacon to provide its policyholders with affordable and convenient premium payment plans.
Beacon policy provides that all estimated premiums are due and payable as of the effective date of the policy. However, in an effort to keep premium payments more affordable for the policyholder, Beacon offers the payment options and guidelines shown in the table below:
|
Premium
|
Pay Plan
|
Deposit
|
Installments
|
Billing
|
|
Under $1000
|
Annual
|
100%
|
None
|
None
|
Over $1000
|
9 Payments |
20% |
8 Equal |
Monthly
First
8 Months
|
Pay As You Go
|
Pay As You Go |
Pay As You Go |
Monthly
|
Pay As You Go
|
Beacon will not restrict properly executed premium finance agreements with authorized premium finance companies. Other billing options may be available only with the permission of Beacon. Based on premium size and payment history, an Underwriter may grant payment plans of quarterly, 6 payments, 9 payments, 10 payments, 12 payments or Pay-As-You-Go option.
The use of Beacon payment schedule includes a five-dollar ($5.00) service charge per installment. When a policy is paid off in full prior to installments being billed, all future service charges will be waived. When payments are made via EFT, Beacomp will automatically waive the $5.00 service charge. Also refer to the Payment Options page.
Payment plans will not be offered beyond the expected term of seasonal or short-term policies.
Recognizing the inherent expenses attached to the collection of premiums, the failure to adhere to these guidelines may result in the withdrawal of the payment plan option from the policyholder by Beacon.
Loss-Free Credits
Beacon's loss-free credit program provides for a premium credit up to a maximum of 15 percent. This credit applies to New Business and Renewal policies.
When submitting a New Business application, provide proof of prior loss-free history to receive a premium credit associate that corresponds with the table below:
|
Beacon's Loss Free Credit Program |
| loss-free for 2 years |
3% Premium Credit |
| loss-free for 3 years |
5% Premium Credit |
| loss-free for 4 years |
7% Premium Credit |
| loss-free for 6 years |
7% Premium Credit |
| loss-free for 6 or more years |
10% Premium Credit |
To find out more about Beacon's Loss Free Credit program and eligibility requirements, including New Business participation, call Beacon's underwriting department today at 401-825-2667.
Shared-Earnings Rating Plans
The Shared-Earnings Rating Plans are a type of loss-sensitive program. The premium is calculated originally as though the policy were being issued at a guaranteed cost. It differs, however, in that the shared-earnings distribution is calculated six months after policy expiration, based on the insured's final audited premium and incurred losses, subject to Board of Director Approval.
Generally with this plan, whenever a developed loss ratio is 45 percent or less, the employer receives a shared-earnings distribution.
