CPAP Frequently Asked Questions

General Questions

Q. Does an insured need to submit applications for each of their policies (wrap-up, OCIP)?
A. Yes. An insured must submit an application for each of their policies that include eligible classification codes. Any policies that do not have eligible classification codes cannot be submitted. A combining of data for all policies is not allowed.

Q. What payroll is to be reported on an application?
A. The program uses the third quarter (July, August & September) payrolls as outlined in the application instructions. Do not use yearly, weekly or hourly totals.

Q. What maximum weekly payroll (as defined by the Payroll Limitation Law) is used on an application?
A. The maximum payroll, as outlined in the application instructions for the third quarter payrolls submitted, is used.

Q. Can the weekly payroll maximums be different on an application and a policy?
A. Yes. The application uses the weekly maximum applicable to the third quarter payrolls submitted while the policy to which the credit applies uses whatever maximum is in effect for the policy period.

Q. Do overtime hours and payrolls need to be reported?
A. Yes. Overtime hours and wages are to be included subject to overtime and payroll limitation rules (i.e. the weekly payroll maximum needs to be reported along with the total hours worked including all overtime hours).

Q. Are the credits indicated in the manual the final credits determined after the calculation?
A. No. The calculation of a credit is a two-step process. The first part, using the manual credits, determines the Base Credit. The second part takes an employer's experience modification loss data into account to determine the Net (final) Credit. You must be experienced rated for the policy year the application is effective.

Q. Do payrolls for Non-Eligible classification codes need to be reported?
A. Yes. Since any calculated credit applies to the entire policy premium, all payrolls must be included on the application.

Q. Do hours worked need to be reported for non-eligible classification codes?
A. Yes. At least one (1) hour needs to be entered or the calculation will not process.

Q. Does an employer need to be experience rated for the policy period to which any calculated credit applies?
A. Yes. Although an insured may have previously been experience rated, they cannot apply for or receive a credit if they are not experience rated for the policy period to which any credit applies.

Q. When is an application considered too late to process?
A. Applications must be received prior to the expiration date of the policy to which any credit applies. This pertains to all policies including short term policies.

Q. When is a reapplication considered too late to process?
A. A revised application must be received no later than one (1) year after the expiration date of the policy to which the credit applies.

Q. How is the payroll treated when an employee works part of a week on a wrap-up job and part of a week on a regular job?
A. The payrolls under each job, and policy, are treated separately. The employee must earn more than the maximum under both or one of the jobs in order to have the payroll limitation apply to either.

Q. Does a calculated credit apply to all of an insured's policies?
A. No, each of insured's policies with eligible classification codes must be submitted on separate applications.

Q. Can a late letter be sent on broker/agent letterhead?
A. No, the late letter must be on insured letterhead and signed by insured.

Q. How do I know which 3rd quarter payroll and/or payroll cap to use?
A. See the instruction section that has effective date and which quarter to use.

Q. Why should I send the CPAP application via email?
A. Confirmation of applications and corrections to applications are done via email only.

Q. Who can request a copy of the CPAP credit?
A. Only brokers/agents of record that are listed on the policy. If you are not listed as broker/agent of record, then and original Letter of Authority must be submitted to the Rating Board, on insured letterhead, signed by insured and sent via mail.

Q. Do I include holiday and sick pay in the calculation?
A. Yes, holiday and sick are included but bonuses and commissions are not to be included.

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