January 13, 1998

ALL ASSOCIATION MEMBERS

Circular Letter No. 98-1290

RE: 4-1-98 Assigned Risk Rates

Commerce Commissioner Gruenes issued a rate order on December 31, 1997 approving a 2.3% decrease in the overall level of the Assigned Risk rates effective April 1, 1998. The following is an excerpt of the Commissioner's order:

"ORDERED

1. That the Assigned Risk Plan will adopt effective April 1, 1998, the relativities of the pure premium base rates of the 1998 Minnesota Ratemaking Report of the Minnesota Workers' Compensation Insurers Association.

2. That the overall rate level charged by the Minnesota Workers' Compensation Assigned Risk Plan will be decreased 2.3% effective April 1, 1998.

3. That the maximum rate change of any class will be limited to 25%."

These rates have also been adjusted by the application of the Minnesota Contractors Premium Adjustment Program.

A listing of approved rates is attached for your review. Please feel free to call with any questions or comments.

Sincerely,

CRAIG A. ANDERSON

Vice President
Actuarial Services