STATE OF NEVADA BRUCE H. BRESLOW Director SCOTT J. …...the National Council on Compensation...

BRIAN SANDOVAL Governor

STATE OF NEVADA BRUCE H. BRESLOW Director

SCOTT J. KIPPER Commissioner

DEPARTMENT OF BUSINESS AND INDUSTRY

DIVISION OF INSURANCE 1818 East College Pkwy., Suite 103

Carson City, Nevada 89706 (775) 687-0700 • Fax (775) 687-0787

Website: doi.nv.gov E-mail: [email protected]

September 24, 2013

Rick Combs

Director

State of Nevada Legislative Counsel Bureau

Legislative Building

401 S. Carson Street

Carson City, NV 89701-4747

Via e-mail: [email protected]

Re: Industrial Insurance – NCCI Revisions: Update to the Federal Mine Safety and Health

Act References; Discontinuation of the Per-Passenger-Seat Surcharge; Exclusion of

Fraudulent and/or Noncompensable Losses from Incurred Losses for the Purposes of the

Loss-Sensitive Rating Plan

Dear Director Combs:

Pursuant to NRS 686B.177, we are required to “report any changes in rates or in the

Uniform Plan for Rating Experience, the Uniform Statistical Plan or the Uniform System of

Classification” to you.

Enclosed, please find a PDF copy of the entirety of the recently approved filing made by

the National Council on Compensation Insurance, Inc. (“NCCI”), with NCCI tracking number B-

1426 and Nevada State tracking number 40073.

The filing in question revises NCCI’s Nevada Basic Manual Rules in four ways:

1. Former references to the Federal Coal Mine Safety and Health Act have been updated

mailto:[email protected]


twilt

Typewritten Text

24-13

to reflect the updated name of this federal law: the Federal Mine Safety and Health Act. There

would be no premium impact from this revision.

2. NCCI has eliminated the per-passenger-seat surcharge, established in 1947 for

Classification Code 7421—Aircraft or Helicopter Operation—Transportation of Personnel in

Conduct of Employer’s Business—Flying Crew. The surcharge has been reported to NCCI under

Statistical Codes 0088 and 9108 in the recent past, instead of being reported directly under the

applicable Classification Code. Methodological improvements have led NCCI to recommend the

elimination of the surcharge. NCCI expects the statewide premium impact from this revision to be

negligible. If any impact occurs, it would be in the direction of a reduction in premium within

approximately two years.

3. For purposes of NCCI’s loss-sensitive rating plan (LSRP), applicable to assigned-risk

policies only, a clarification has been added that fully fraudulent and/or noncompensable claims

are to be excluded from the definition of incurred losses in the LSRP formula. NCCI expects the

premium impact from this methodological change to be negligible. This new methodology is in

line with NCCI’s existing exclusion of fraudulent and/or noncompensable claims from the

definition of incurred losses in its Experience Rating Plan.

4. NCCI has updated various endorsement number references included in NCCI's

Experience Rating Plan Manual for Workers’ Compensation and Employers Liability Insurance,

in order to reflect the most current endorsement numbers. There would be no premium impact

from this revision.

If you have any questions or desire additional information, please feel free to contact me

via e-mail at [email protected].

Sincerely,

Mr. Gennady Stolyarov II, ASA, ACAS, MAAA, CPCU, ARe, ARC, API, AIS, AIE, AIAF

Lead Actuary, Property and Casualty Insurance

Support for the Corporate and Financial Affairs Section and the Property and Casualty Section

Nevada Division of Insurance

cc: Todd Rich, Deputy Commissioner of Insurance

Elena Ahrens, Chief Examiner, Property & Casualty Section


Filing at a Glance

Company: NCCI

Product Name: B-1426 Update Federal Mine Safety and Health Act References; Discontinue Per PassengerSeat Surcharge; Exclude Fraudulent and/or Noncompensable Losses from Incurred Losses

State: Nevada

TOI: 16.0 Workers Compensation

Sub-TOI: 16.0004 Standard WC

Filing Type: Rule

Date Submitted: 09/20/2013

SERFF Tr Num: NCCI-129196411

SERFF Status: Closed-Approved

State Tr Num: 40073

State Status: Approved

Co Tr Num: B-1426 (LB)

Effective DateRequested (New):

01/01/2015

Effective DateRequested (Renewal):

01/01/2015

Author(s): Lesley O'Brien, Alison Herwig, Frank Gnolfo, Dennis Kokulak, Robert Dalton

Reviewer(s): Mr. Gennady Stolyarov II (primary)

Disposition Date: 09/20/2013

Disposition Status: Approved

Effective Date (New):

Effective Date (Renewal):

State Filing Description:

SERFF Tracking #: NCCI-129196411 State Tracking #: 40073 Company Tracking #: B-1426 (LB)

State: Nevada Filing Company: NCCI

TOI/Sub-TOI: 16.0 Workers Compensation/16.0004 Standard WC

Product Name: B-1426 Update Federal Mine Safety and Health Act References; Discontinue Per Passenger Seat Surcharge; Exclude Fraudulentand/or Noncompensable Losses from Incurred Losses

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number NCCI-129196411 Generated 09/24/2013 12:20 PM

General Information

Company and Contact

Filing Fees

Project Name: Status of Filing in Domicile:

Project Number: Domicile Status Comments:

Reference Organization: Reference Number:

Reference Title: Advisory Org. Circular:

Filing Status Changed: 09/20/2013

State Status Changed: 09/20/2013 Deemer Date:

Created By: Frank Gnolfo Submitted By: Frank Gnolfo

Corresponding Filing Tracking Number:

State TOI: 16.0 Workers Compensation State Sub-TOI: 16.0004 Standard WC

Filing Description:

This item:- Revises references to the Federal Coal Mine Safety and Health Act- Discontinues the per passenger seat surcharge and its corresponding statistical codes- Excludes fully fraudulent and/or noncompensable claims from the definition of incurred losses in the retrospective rating planformula and the Loss Sensitive Rating Plan (LSRP) formula- Removes endorsement number references included in NCCI's Experience Rating Plan Manual for Workers Compensationand Employers Liability Insurance (Experience Rating Plan Manual)

Filing Contact InformationMaggie Karpuk, State Relations Executive [email protected]

30501 Agoura Road, Suite 201

Agoura Hills, CA 91301

818-707-8374 [Phone]

818-707-8387 [FAX]

Filing Company InformationNCCI

901 Peninsula Corporate Circle

Boca Raton, FL 33487

(561) 893-3186 ext. [Phone]

CoCode:

Group Code:

Group Name:

FEIN Number: 65-0439698

State of Domicile: Florida

Company Type:

State ID Number:

Fee Required? Yes

Fee Amount: $25.00

Retaliatory? No

Fee Explanation: Rule filing

Per Company: Yes

Company Amount Date Processed Transaction #

NCCI $25.00 09/20/2013 74287512




Product Name: B-1426 Update Federal Mine Safety and Health Act References; Discontinue Per Passenger Seat Surcharge; Exclude Fraudulentand/or Noncompensable Losses from Incurred Losses



Correspondence Summary DispositionsStatus Created By Created On Date Submitted

Approved Mr. Gennady Stolyarov II 09/20/2013 09/20/2013




Product Name: B-1426 Update Federal Mine Safety and Health Act References; Discontinue Per Passenger Seat Surcharge; Exclude Fraudulent and/or Noncompensable Lossesfrom Incurred Losses



Disposition

Disposition Date: 09/20/2013

Effective Date (New):

Effective Date (Renewal):

Status: Approved

Comment:

Rate data does NOT apply to filing.

Schedule Schedule Item Schedule Item Status Public Access

Supporting Document Authorization Letter Yes

Supporting Document Filing Fees Yes

Supporting Document Filing Memorandum Yes

Supporting Document Workers' Compensation Rate Filing/Loss Costs Expense

Worksheet

Yes

Rate Exhibit 1 Yes

Rate Exhibit 2 Yes

Rate Exhibit 3 Yes

Rate Exhibit 4 Yes

Rate Exhibit 5 Yes

Rate Exhibit 6 Yes

Rate Exhibit 7 Yes

Rate Exhibit 8 Yes

Rate Exhibit 9 Yes

Rate Exhibit 10 Yes

Rate Exhibit 11 Yes







Schedule Schedule Item Schedule Item Status Public Access

Rate Exhibit 12 Yes

Rate Exhibit 13 Yes

Rate Exhibit 14 Yes

Rate Exhibit 15 Yes







Rate/Rule Schedule

Item

No.

Schedule Item

Status Exhibit Name Rule # or Page # Rate Action

Previous State

Filing Number Attachments

1 Exhibit 1 Rule 3-12 Replacement 14365 B-1426_Exhibits_1.pdf

2 Exhibit 2 Rule 3-20 Replacement B-1369 B-1426_Exhibits_2.pdf

3 Exhibit 3 Rule 4-12 Replacement 20303 B-1426_Exhibits_3.pdf

4 Exhibit 4 Rule 4f Replacement 20303 B-1426_Exhibits_4.pdf

5 Exhibit 5 Classifications Replacement B-1399 B-1426_Exhibits_5.pdf

6 Exhibit 6 Rule 1 B Replacement E-1379 B-1426_Exhibits_6.pdf

7 Exhibit 7 Rule 1 c Replacement 14548 B-1426_Exhibits_7.pdf

8 Exhibit 8 Rule 1 f Replacement 14548 B-1426_Exhibits_8.pdf

9 Exhibit 9 Stat Plan Part 1 L Replacement 27279 B-1426_Exhibits_9.pdf

10 Exhibit 10 Stat Plan Part 3 F2b Replacement 27279 B-1426_Exhibits_10.pdf

11 Exhibit 11 Stat Plan Part 4 1a Replacement 27279 B-1426_Exhibits_11.pdf

12 Exhibit 12 Stat Plan Part 6G Replacement 27279 B-1426_Exhibits_12.pdf

13 Exhibit 13 Stat Plan Part 6 H2 Replacement 27279 B-1426_Exhibits_13.pdf

14 Exhibit 14 Stat Plan Part 6 K1 Replacement 27279 B-1426_Exhibits_14.pdf

15 Exhibit 15 Misc Rules Replacement B-1407 B-1426_Exhibits NV 15.pdf







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Supporting Document Schedules

Bypassed - Item: Authorization Letter

Bypass Reason: NAAttachment(s):Item Status:Status Date:

Bypassed - Item: Filing Fees


Satisfied - Item: Filing MemorandumComments:

Attachment(s): Memorandum B-1426.pdfItem Status:Status Date:

Bypassed - Item: Workers' Compensation Rate Filing/Loss Costs Expense Worksheet








NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC.(Applies in: AK, AL, AR, AZ, CO, CT, DC, FL, GA, HI, IA, ID, IL, IN, KS,KY, LA, MA, MD, ME, MN, MO, MS, MT, NC, NE, NH, NM, NV, OK, OR,RI, SC, SD, TN, TX, UT, VA, VT, WI, WV)

B-1426PAGE 1

FILING MEMORANDUM

ITEM B-1426—UPDATE FEDERAL MINE SAFETY AND HEALTH ACT REFERENCES;DISCONTINUE PER PASSENGER SEAT SURCHARGE; EXCLUDE FRAUDULENT AND/ORNONCOMPENSABLE LOSSES FROM INCURRED LOSSESPURPOSE

This item:• Revises references to the Federal Coal Mine Safety and Health Act• Discontinues the per passenger seat surcharge and its corresponding statistical codes• Excludes fully fraudulent and/or noncompensable claims from the definition of incurred losses in the

retrospective rating plan formula and the Loss Sensitive Rating Plan (LSRP) formula• Removes endorsement number references included in NCCI’s Experience Rating Plan Manual for

Workers Compensation and Employers Liability Insurance (Experience Rating Plan Manual)

The following NCCI manuals are impacted by this item:• Basic Manual for Workers Compensation and Employers Liability Insurance (Basic Manual)• Experience Rating Plan Manual• Retrospective Rating Plan Manual for Workers Compensation and Employers Liability Insurance

(Retrospective Rating Plan Manual)• Statistical Plan for Workers Compensation and Employers Liability Insurance (Statistical Plan)

BACKGROUND

Federal Mine Safety and Health Act

NCCI’s Basic Manual, Retrospective Rating Plan Manual, and Statistical Plan contain several rules thatreference the Federal Coal Mine Safety and Health Act. These references must be updated to conform withthe current name, which is the Federal Mine Safety and Health Act (Act). The name of the current Actbecame effective with the enactment of the Federal Mine Safety and Health Act of 1977, which amended theFederal Coal Mine Health and Safety Act of 1969.

Additionally, NCCI’s Experience Rating Plan Manual Rule 1-B contains the specific number reference toNCCI’s Workers Compensation and Employers Liability Insurance Policy (Policy) and the Policy PeriodEndorsement. To avoid the need for a national filing to update NCCI’s Experience Rating Plan Manualeach time the Policy and/or endorsement number is revised, NCCI is removing the number reference fromthe rule content.

Per Passenger Seat Surcharge

The per passenger seat surcharge was established in 1947, concurrent with the introduction of ClassificationCode 7421—Aircraft or Helicopter Operation—Transportation of Personnel in Conduct of Employer’sBusiness—Flying Crew. The purpose of the per passenger seat surcharge is to provide a catastrophe loadfor the exposure of an insured’s employees (other than flight crew) who may be injured while passengers onthe insured’s noncommercial, nonscheduled aircraft. The surcharge is applied to policies with ClassificationCode 7421 and must be charged in addition to the premium otherwise determined under ClassificationCode 7421. At its inception, the surcharge was $35 per passenger seat, subject to a maximum of $300 peraircraft. Currently, the per passenger seat surcharge is $100 per passenger seat, subject to a maximum of

The enclosed materials are copyrighted materials of the National Council on Compensation Insurance, Inc. ("NCCI"). The use of these materialsmay be governed by a separate contractual agreement between NCCI and its licensees such as an affiliation agreement between you and NCCI.Unless permitted by NCCI, you may not copy, create derivative works (by way of example, create or supplement your own works, databases,software, publications, manuals, or other materials), display, perform, or use the materials, in whole or in part, in any media. Such actions takenby you, or by your direction, may be in violation of federal copyright and other commercial laws. NCCI does not permit or acquiesce such use ofits materials. In the event such use is contemplated or desired, please contact NCCI's Legal Department for permission.

© Copyright 2013 National Council on Compensation Insurance, Inc. All Rights Reserved.


B-1426PAGE 2

FILING MEMORANDUM

ITEM B-1426—UPDATE FEDERAL MINE SAFETY AND HEALTH ACT REFERENCES;DISCONTINUE PER PASSENGER SEAT SURCHARGE; EXCLUDE FRAUDULENT AND/ORNONCOMPENSABLE LOSSES FROM INCURRED LOSSES

$1,000 per aircraft. Kansas, Oklahoma, and Virginia continue to apply a surcharge of $35 per passengerseat, subject to a maximum of $300 per aircraft.

For all states other than Arizona and Virginia, the per passenger seat surcharge and any associated lossesare reported under Statistical Code 9108—Aircraft Operation for Reporting Passenger Seat Surcharge andCrash Losses to Employees Other Than Members of Crew. The premium reported to Statistical Code9108 is not subject to experience rating; the losses reported to Statistical Code 9108 are not used in theexperience rating calculation.

The per passenger seat surcharge is not applicable in Arizona.

For Virginia, the per passenger seat surcharge and any associated losses are reported under Statistical Code0088—Aircraft Operation for Reporting Passenger Seat Surcharge and Crash Losses to Employees OtherThan Members of Crew. While the losses reported to Statistical Code 0088 are not used in the experiencerating calculation, the premium reported to Statistical Code 0088 is subject to experience rating.

Aircraft losses have historically been reported to Statistical Codes 0088 and 9108, which are excluded fromNCCI’s ratemaking. Since the per passenger seat surcharge was introduced, large loss procedures havebeen incorporated in both NCCI’s experience rating and ratemaking procedures to temper the impact ofsingle large loss claims and multi-claim occurrences.

In class ratemaking, individual claims are limited to $500,000 and multi-claim occurrences are limited to$1,500,000 with excess losses accounted for through the application of excess provisions incorporated in theratemaking process. Claim limits vary by state for aggregate ratemaking and can be found in the technicalsupplement that accompanies each state’s loss cost or rate filing.

Individual claims and multi-claim occurrences are also limited for purposes of calculating experience ratingmodifications. These limits are shown in each state’s table of weighting values located in NCCI’s ExperienceRating Plan Manual. Catastrophe losses are also excluded from experience rating per Rule 1-C-3 of NCCI’sExperience Rating Plan Manual.

The per passenger seat surcharge will be discontinued for the following reasons:• In recent years, a minimal amount of premium has been reported under Statistical Codes 9108 and 0088• Aircraft loss events are rare and the outcomes are uncertain• Aircraft losses should be included in ratemaking since a large loss procedure and catastrophe provisions

are now in place• The per passenger seat surcharge does not address situations in which the insured has a separate legal

entity solely for the aircraft exposure

Also, NCCI has identified another change unrelated to the per passenger seat surcharge issue. The footnotefor the Total Standard Premium element in various state workers compensation premium algorithms providedin NCCI’s Basic Manual has no direct relationship to the premium algorithm calculation; therefore, thefootnote is being removed if shown in a state algorithm.




B-1426PAGE 3

FILING MEMORANDUM

ITEM B-1426—UPDATE FEDERAL MINE SAFETY AND HEALTH ACT REFERENCES;DISCONTINUE PER PASSENGER SEAT SURCHARGE; EXCLUDE FRAUDULENT AND/ORNONCOMPENSABLE LOSSES FROM INCURRED LOSSESExclusion of Fully Fraudulent and/or Noncompensable Claims From Retrospective Rating and LSRP

Retrospective rating adjusts policy premium on the basis of incurred losses during the term of the policy.Incurred losses are defined in NCCI’s Statistical Plan and include paid and outstanding losses. NCCIhas determined that fully fraudulent claims, as defined in NCCI’s Statistical Plan Part 6-P, and/ornoncompensable claims, as defined in NCCI’s Statistical Plan Part 6-K-5, should be excluded from theincurred losses used in retrospective rating and LSRP (where applicable). Currently, fully fraudulent and/ornoncompensable claims are excluded and will continue to be excluded from experience rating when reportedin accordance with NCCI’s Statistical Plan. The exclusion of these types of claims from retrospective ratingand LSRP will be consistent with the exclusion of these types of claims for experience rating purposes.

PROPOSAL


It is proposed that the following list of national rules be revised to properly reference the Federal Mine Safetyand Health Act. Revisions to state-specific rules are described in the Exhibit Comments and ImplementationSummary section of this item.• NCCI’s Basic Manual Rules 3-A-12-a, 3-A-20, 4-C-5-c(12)(b), and 4-C-9-f• NCCI’s Retrospective Rating Plan Manual Rules 1-B-1-c and 1-B-1-f• NCCI’s Statistical Plan Parts 1-L-2, 6-G, and 6-K-1

In addition, it is proposed that NCCI’s Experience Rating Plan Manual Rule 1-B be revised to remove thenumber references to the Policy and the Policy Period Endorsement.


It is proposed that the following list of national rules be revised to discontinue the per passenger seatsurcharge. Revisions to state-specific rules and workers compensation premium algorithms are described inthe Exhibit Comments and Implementation Summary section of this item.• NCCI’s Basic Manual Rules 3-A-20, 4-C-5-c(12)(b), and 4-C-9-f• NCCI’s Basic Manual Part Two—Classifications—Code 7421—Aviation—Transportation of Personnel in

Conduct of Employer’s Business—Flying Crew• NCCI’s Retrospective Rating Plan Manual Rules 1-B-1-c and 1-B-1-f• NCCI’s Statistical Plan Parts 3-F-2-b and 4-E-1-f(2)(a)• NCCI’s Statistical Plan Part 6-H-2 for Statistical Code 9108—Aircraft Operation—Passenger Seat

Surcharge

The per passenger seat surcharge will be eliminated from the Miscellaneous Values pages of NCCI’s BasicManual effective January 1, 2015, for states where this item has received regulatory approval.

Exclusion of Fully Fraudulent and/or Noncompensable Claims From Retrospective Rating and LSRP




B-1426PAGE 4

FILING MEMORANDUM


It is proposed that fully fraudulent and/or noncompensable claims, as defined in NCCI’s Statistical PlanParts 6-P and 6-K-5, be excluded from the definition of the incurred losses used for retrospective rating andLSRP. It is also proposed to revise the description of other types of losses currently excluded from incurredlosses used for retrospective rating. These revisions to NCCI’s Retrospective Rating Plan Manual Rule1-B-1-c do not change the intent of the rule. Accordingly, it is proposed that the following list of national rulesbe revised. Revisions to state-specific rules are described in the Exhibit Comments and ImplementationSummary section of this item.• NCCI’s Basic Manual Rule 4-C-9-f• NCCI’s Retrospective Rating Plan Manual Rule 1-B-1-c

Note: Item B-1426 is being filed in conjunction with Item P-1411—Revisions to Forms Manual of WorkersCompensation and Employers Liability Insurance. Item P-1411 proposes to revise references to the FederalCoal Mine Safety and Health Act, discontinue references to the per passenger seat surcharge, and revisereferences to fully fraudulent and noncompensable claims included in retrospective rating and the LossSensitive Rating Program (LSRP) in NCCI’s Forms Manual of Workers Compensation and EmployersLiability Insurance. Items P-1411 and B-1426 should be adopted concurrently.

IMPACT


No premium impact is expected as a result of any of the changes proposed in this item related to updatingreferences to the Federal Coal Mine Safety and Health Act or removing endorsement number referencesfrom Rule 1-B of NCCI’s Experience Rating Plan Manual.


The amount of statewide premium affected by this change is expected to be negligible.

To implement the elimination of the per passenger seat surcharge, the surcharge premium will no longerbe collected and aircraft losses will begin to be reported to the applicable classification code, instead of astatistical code (Statistical Code 9108/0088), concurrent with the elimination of the surcharge. All else beingequal, this will initially cause a slight decrease in premium.

In addition, the aircraft losses will be included in the experience used to calculate a risk’s experiencerating modification. This would create an approximate two-year time lag between the effective date of theelimination of the surcharge and the date that the aircraft losses would be incorporated into future losscosts/rates and experience rating modifications. All else being equal, this will cause a slight increase inpremium in approximately two years.

While aircraft losses would be included in a risk’s experience rating modification, these losses wouldbe subject to the single-claim and multiple-claim loss limitations. For ratemaking, these losses would besubject to the large loss procedure. This procedure was not in place when the per passenger seat surchargewas introduced in 1947.




B-1426PAGE 5

FILING MEMORANDUM

ITEM B-1426—UPDATE FEDERAL MINE SAFETY AND HEALTH ACT REFERENCES;DISCONTINUE PER PASSENGER SEAT SURCHARGE; EXCLUDE FRAUDULENT AND/ORNONCOMPENSABLE LOSSES FROM INCURRED LOSSESExclusion of Fully Fraudulent and Noncompensable Claims from Retrospective Rating and LSRP

The amount of statewide premium affected by this change is expected to be negligible.

EXHIBIT COMMENTS AND IMPLEMENTATION SUMMARY

In all states except Hawaii, this item is to become effective for new and renewal policies effective on andafter 12:01 a.m. on January 1, 2015.

In Hawaii, the effective date is determined upon regulatory approval of the individual carrier's election toadopt this change.

Exhibit Exhibit Comments Implementation Summary1 • Includes the proposed national revisions to

Rule 3-A-12-a• Refer to Exhibit 16 for NC State Rule

Exception for Rule 3-A-12-c• Refer to Exhibit 16 for VA State Rule

Exception for Rule 3-A-12• Not recommended in MA, MN, TX, WI

2 • Includes the proposed national revisions toRule 3-A-20

• Refer to Exhibit 18 for VA State RuleException for Rule 3-A-20

• Not recommended in MA, MN, TX, WI

3 • Includes the proposed national revisions toRule 4-C-5-c(12)(b)

• Applicable only to assigned risk policies inAL, AZ, CT, DC, GA, ID, IL, IN, KS, MS, NC,NH, NV, OR, SC, SD, VT, WV

4 • Includes the proposed national revisions toRule 4-C-9-f

• Applicable only to assigned risk policies inAL, AZ, CT, DC, GA, ID, IL, IN, KS, MS, NC,NH, NV, OR, SC, SD, VT, WV

5 • Includes the proposed national revisionsto Part Two—Classifications—Code7421—Aviation—Transportation of Personnel

Revises NCCI’s Basic Manual.




B-1426PAGE 6

FILING MEMORANDUM


Exhibit Exhibit Comments Implementation Summaryin Conduct of Employer’s Business—FlyingCrew

• Refer to Exhibit 16 for OR State RuleException for Code 7421

• Refer to Exhibit 19 for VA State RuleException for Code 7421


6 • Includes the proposed national revisions toRule 1-B

• Not recommended in MN, TX, WI

Revises NCCI’s Experience Rating PlanManual.

7 • Includes the proposed national revisions toRule 1-B-1-c; applicable only to voluntarypolicies

• Refer to Exhibit 16 for FL, MA, MN, TX,and WI, and Exhibit 18 for NC State RuleExceptions for Rule 1-B-1-c

8 • Includes the proposed national revisions toRule 1-B-1-f; applicable only to voluntarypolicies

• Refer to Exhibit 17 for FL, MA, MN, TX andWI State Rule Exceptions for Rule 1-B-1-f

Revises NCCI’s Retrospective Rating PlanManual.

9 • Includes the proposed national revisions toPart 1-L

• Not recommended in MA, MN, NC, WI

10 • Includes the proposed national revisions toPart 3-F-2-b

• Refer to Exhibit 21 for VA State Exception forPart 3-F-2-b


11 • Includes the proposed national revisions toPart 4-E-1-f(2)(a)

• Refer to Exhibit 22 for VA State Exception forPart 4-E-1-f(2)(a)


Revises NCCI’s Statistical Plan.




B-1426PAGE 7

FILING MEMORANDUM

ITEM B-1426—UPDATE FEDERAL MINE SAFETY AND HEALTH ACT REFERENCES;DISCONTINUE PER PASSENGER SEAT SURCHARGE; EXCLUDE FRAUDULENT AND/ORNONCOMPENSABLE LOSSES FROM INCURRED LOSSESExhibit Exhibit Comments Implementation Summary12 • Includes the proposed national revisions to

Part 6-G• Not recommended in MA, MN, NC, WI

13 • Includes the proposed coding value revisionfor all states except AZ and VA for nationalPart 6-H-2, Statistical Code 9108


14 • Includes the proposed national revisions toPart 6-K-1


15 • Includes the proposed revisions to eachstate’s individual workers compensationpremium algorithm in the voluntary market,where applicable

• Includes the proposed revisions to eachstate’s individual assigned risk workerscompensation premium algorithm in theassigned risk market, where applicable

• For WV, additional information hasbeen added to certain premium elementexplanatory notes in the WV Assigned RiskWorkers Compensation Premium Algorithm



Includes the proposed revision for the AZ StateException to Part 3-F-2-b.


Includes the proposed revisions to the FL StateRule Exception for Rule 1-B-1-c; applicable onlyto voluntary policies.


Includes the proposed revisions to the IN StateRule Exception for Rule 4-H; applicable only toassigned risk policies.

Includes the proposed revisions to the KSMiscellaneous Rules, Part One, Rule 2-f;applicable to assigned risk policies only.


16




B-1426PAGE 8

FILING MEMORANDUM


Exhibit Exhibit Comments Implementation SummaryIncludes the proposed revisions to the MA StateRule Exception for Rule 1-B-1-c; applicable onlyto voluntary policies.

Includes the proposed establishment of theMN State Rule Exception for Rule 1-B-1-c;applicable only to voluntary policies.


Includes the proposed revisions to Rule 2-A-7;applicable only to assigned risk policies.

Revises NCCI’s New Mexico Workers’Compensation Assigned Risk PoolManual (NMARM).

Includes the proposed revisions to the NC StateRule Exception for Rule 3-A-12-c.

Includes the proposed revisions to the OR StateSpecial phraseology for Classification Code7421.


Includes the proposed revisions to the TX StateRule Exception for Rule 1-B-1-c; applicable onlyto voluntary policies.


Includes the proposed revisions to the VA StateRule Exception for Rule 3-A-12.


Includes the proposed establishment of theWI State Rule Exception for Rule 1-B-1-c;applicable only to voluntary policies.


Includes the proposed revision for the AZ StateException to Part 4-E-1.


Includes the proposed revisions to the FL StateRule Exception for Rule 1-B-1-f; applicable onlyto voluntary policies.


Includes the proposed revisions to the KSMiscellaneous Rules, Part One, Rule 5;applicable to assigned risk policies only.


Includes the proposed revisions to the MA StateRule Exception for Rule 1-B-1-f; applicable onlyto voluntary policies.


17




B-1426PAGE 9

FILING MEMORANDUM

ITEM B-1426—UPDATE FEDERAL MINE SAFETY AND HEALTH ACT REFERENCES;DISCONTINUE PER PASSENGER SEAT SURCHARGE; EXCLUDE FRAUDULENT AND/ORNONCOMPENSABLE LOSSES FROM INCURRED LOSSESExhibit Exhibit Comments Implementation Summary

Includes the proposed establishment of theMN State Rule Exception for Rule 1-B-1-f;applicable only to voluntary policies.

Includes the proposed revisions to Rule10-B-2-b; applicable only to assigned riskpolicies.

Revises NCCI’s NMARM.

Includes the proposed revisions to the NCWorkers Compensation Insurance Plan, SectionI—Definitions; applicable to assigned riskpolicies only.


Includes the proposed revisions to the TX StateRule Exception for Rule 1-B-1-f; applicable onlyto voluntary policies.


Includes the proposed discontinuation of theassigned risk VA State Rule Exception forRule 3-A-12. The voluntary and assigned riskVA exceptions for Basic Manual Rule 3-A-12are identical; therefore, it is not necessary tohave duplicate rules apply separately for bothmarkets.


Includes the proposed revisions to the WI StateRule Exception for Rule 1-B-1-f; applicable onlyto voluntary policies.


• Includes the proposed revisions to Appendix,Article II-2

• In addition to the Act name, NCCI hasdetermined that the formatting of certainstatutory citations must be updated

• Applicable only to assigned risk policies

Revises NCCI’s NMARM.

Includes the proposed establishment of theNC State Rule Exception for Rule 1-B-1-c;applicable only to voluntary policies.


18

Includes the proposed revisions to the VA StateRule Exception for Rule 3-A-20. Revises NCCI’s Basic Manual.




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FILING MEMORANDUM


19 Includes the proposed update to the phraseologyand description to discontinue references to theper passenger seat surcharge for ClassificationCode 7421—Aviation—Transportationof Personnel in Conduct of Employer’sBusiness—Flying Crew.

Revises the Virginia Special Classificationssection of NCCI’s Basic Manual.

20 Includes the proposed coding value revisionspecific to VA for national Part 6-H-1, StatisticalCode 0088.

21 Includes the proposed revision for the VA StateException to Part 3-F-2-b.

22 Includes the proposed revision for the VA StateException to Part 4-E-1-f(2)(a).




STATE OF NEVADA BRUCE H. BRESLOW Director SCOTT J. …...the National Council on Compensation...

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