The Minnesota Contractors Premium Adjustment Program (MCPAP) provides a potential premium credit based on the employee's average hourly wages. This is an optional program.
Employers who paid the qualifying average hourly wage in at least one contracting classification during the calendar year are eligible. The qualifying average wage changes each year.
Based on the information provided on the application, MWCIA computes the insured's average hourly wage for each classification, the applicable classification premium credit, and the overall policy credit factor. These calculations are displayed on a MCPAP Credit Worksheet. A copy of this worksheet is mailed to the carrier of record and the employer.
Expected losses on the experience rating worksheets are lowered by the amount of the MCPAP credit factor. This adjustment to expected losses is at the aggregate level; both the expected losses and the expected primary loss totals are adjusted by the MCPAP credit factor in the experience modification formula.
The MCPAP credit factor is applied in the calculation of an employer's premium after the experience modification factor but before any other credits are applied to the policy.
No. You must include wages and hours (excluding the overtime premium pay) for all employees.
To calculate your Average Hourly Wage, divide your total payroll by the total hours worked for each class code.
List all codes shown on the policy. This includes both contracting codes and non-contracting codes. Include total payroll and hours worked for each code.
No. MCPAP is not mandatory. However, you will not receive a credit on your renewal policy if you do not complete the application.
We will accept applications after the due date. A two point (.02) penalty will be added to your policy credit factor. We will accept application up to 90 days after the effective date of your policy.
Questions about completing a MCPAP application or the MCPAP program in general, can be discussed with any member of our Underwriting staff by dialing (952) 897-1737 and selecting Option 1 (Underwriting).