Members' first year premiums will be calculated on the basis of the H.O.N.Y. Trust rates adjusted by the members' own experience modifier. The Group's up-front premium reduction will be based on the programs guaranteed overhead and administrative savings as compared to the insurance industry.



Long term Savings for reduction of Experience modifier.



The purpose of this fund will be to provide for the financial protection against catastrophic claims' liabilities within the groups' retention level, as well as to buffer against the group incurring an overall unfavorable loss ratio in any one particular year. Financial penalties and rewards for each individual member's claims experience will be a key component of the program, as follows:

 Section 110 claims will be expected to be self-insured by each member

 Experience modifiers will continue to be calculated for each member



Underwriting criteria will not be sacrificed to facilitate premium growth. Maintenance of the superior underwriting profile of the membership will remain a priority in decisions regarding acceptance of new members. It is anticipated that the combination of premium savings, The S.A.F.E. Program Accident Prevention Services' and Claims' Administration Services, will create a favorable reputation in New York's Healthcare Organization's, with the H.O.N.Y. Program being a preferred provider of workers' compensation coverage.