What Is The NCCI?
The ( NCCI ) National Council on Compensation Insurance is based in Boca Raton, FL. They perform the Workers Compensation rating calculations for employers and insurance companies in over 40 states.
Even the states that do not use them for their rating calculations base their Experience Modification Factors (E-Mods/X-Mods) on their math. There is no other company that promulgates E-Mods.
Most of my interactions with NCCI have been very positive, as they do realize they are a service organization and seem to treat people as such. You may have noticed the large NCCI insignia on your rating sheets. If you have not seen those sheets and you have the fiduciary responsibility for your company, please obtain a copy of them ASAP, as they impact your Workers Comp insurance budget heavily.
There are many free services provided by the NCCI including State Advisory Meetings and a huge Educational Section on their website. They now even have a large library of videos that cover most of the Experience Rating basics.
One of the main tasks that NCCI has undertaken is to change its Classification Code system by what seems to be a consolidation of the number of Classification Codes that are in place. There are now over 600.
There are state minimums to have an Experience Rating. If your company has grown very quickly from a very small company, you may be in line to be Experience Rated. Also, if you have a large deductible program for your Workers Comp claims, the carrier is still going to report your claims to the NCCI or State Rating Bureau.
I will not go into the E-Mods or Classification Codes in this post. Please check out the prior and archived posts on those subjects.
Next Up – How many chances are there for a mistake to be made in a Work Comp policy?
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