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MCPAP

  • What is MCPAP?

    FAQ

    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.


  • Who is eligible?

    FAQ

    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.


  • How is the MCPAP factor calculated?

    FAQ

    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.


  • How does the MCPAP factor affect the experience modification factor?

    FAQ

    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.


  • How is the MCPAP factor applied to the policy?

    FAQ

    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.


  • MCPAP Timeline?

    FAQ

    • Applications are mailed to employers in January of each year. The enrollment period deadline is April 1 of each year.
    • Applications received after April 1 are subject to a two-point (.02) late processing penalty. Applications can be submitted up to 90 days after the effective date of the policy.
    • Calculation of the MCPAP Credit Worksheet begins in early fall of each year and are mailed to the carrier of record and the employer.


  • Do I only list payroll for employees that make the qualifying average hourly wage?

    FAQ

    No. You must include wages and hours (excluding the overtime premium pay) for all employees.


  • How can I calculate my average hourly wage?

    FAQ

    To calculate your Average Hourly Wage, divide your total payroll by the total hours worked for each class code.


  • When I complete the MCPAP application, do I list all classification codes or only the contracting codes?

    FAQ

    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.


  • Do I have to complete this application?

    FAQ

    No. MCPAP is not mandatory. However, you will not receive a credit on your renewal policy if you do not complete the application.


  • Can I still send in my application if I forgot to apply?

    FAQ

    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.


  • Who may I speak with about completing a MCPAP (Minnesota Contractors Premium Adjustment Program) application or the MCPAP program in general?

    FAQ

    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).