DELAWARE INSURANCE PLAN
 

Residual Market - Assigned Risk - Delaware
When an employer is unable to secure coverage through the voluntary market, an alternative commonly referred to as the "assigned risk" or "residual market" is available to the employer through the Delaware Workers Compensation Insurance Plan (DIP). The DIP ensures that all employers have a means of meeting their statutory obligations under the workers compensation law.

Who is Eligible for the DIP? All employers are eligible provided they have made a good faith effort to secure workers compensation coverage through the voluntary market. Two Delaware licensed insurance companies must decline insurance applications from an employer in order for the DIP to provide workers compensation coverage to the employer. Failure to accept any reasonable offer of coverage by a voluntary carrier renders the applicant ineligible. In addition, the employer is not eligible for assignment through the DIP unless all previous and current workers compensation premium obligations, whether disputed or undisputed by the employer, have been satisfied.

What is the (DIP) Surcharge and How Does It Apply? The DIP surcharge applies to all risks insured in the Plan, regardless of whether DIP applications were processed through Delaware, or WCIP residual market applications were processed through another state.

Premium surcharges will apply to risks insured under the plan which qualify for experience rating and which produce experience modifications in excess of 1.000 (i.e. debit-rated risks). Surcharge factors are computed using the following formula:

0.50 x (1.000 - Employer’s Credibility in the Experience Rating Plan)

Computed surcharge factors will be limited to maximums computed by subtracting unity (1.000) from each subject risk’s experience modification factor.

The DIP surcharge only applies to policies issued through an approved residual market mechanism. Employers currently in the DIP that subsequently secure coverage through the voluntary market will not be subject to the DIP surcharge for their voluntary market policy.

The DIP application and endorsements can be completed by key-entering the appropriate information on the blank forms provided at the bottom of this page. Completed forms may then be printed and mailed to the Delaware Compensation Rating Bureau, Inc. Alternatively, the blank forms may be printed and manually completed. Applications must be signed and all forms must be mailed to the Delaware Compensation Rating Bureau, Inc. with a check for the full premium or the appropriate deposit premium. Refer to page 4 of the application for deposit premium requirements.

Additional information or applications for the assigned risk plan can be obtained from the Plan Administrator at 302-654-1435 or 215-568-2371.

Clicking on the appropriate icon below will allow you to display all necessary DIP forms and instructions. You may print the application and any appropriate forms and endorsements for manual completion.

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