Top 10 Questions #10
Who is the NCCI and how do they affect my Workers Comp insurance premiums?
The National Council on Compensation Insurance is based in Boca Raton, FL. They are the main rate-making Workers Comp organization in the US.
The NCCI does not actually directly set the Workers Comp rates for the Classification Codes. They will make recommendations for increases or decreases to rates that must be approved by each individual state. Most states do approve their advisory rates without question.
The main function of the NCCI is to calculate your Experience Modification factor, or E-Mod. The E-Mod individualizes the Workers Comp rates to your company. Usually, even if your company is in a non-NCCI rated state, your company will be rated by the NCCI if you have risks in multiple states.
The NCCI is sometimes criticized on how they operate, but it is the best system in place to rate your company and provide your E-Mod.
The National Council on Compensation Insurance is based in Boca Raton, FL. They are the main rate-making Workers Comp organization in the US.
The NCCI does not actually directly set the Workers Comp rates for the Classification Codes. They will make recommendations for increases or decreases to rates that must be approved by each individual state. Most states do approve their advisory rates without question.
The main function of the NCCI is to calculate your Experience Modification factor, or E-Mod. The E-Mod individualizes the Workers Comp rates to your company. Usually, even if your company is in a non-NCCI rated state, your company will be rated by the NCCI if you have risks in multiple states.
The NCCI is sometimes criticized on how they operate, but it is the best system in place to rate your company and provide your E-Mod.
Labels: The Top 10 Questions That We Receive on Workers Comp - 10
posted by James J Moore at 8:46 PM
