Top 30 Insurance Policy Mistakes
These are the list of insurance policy mistakes from rating bureau. I have often heard this phrase from employers “As far as we know, our insurance carriers are reporting everything to NCCI or our State Rating Bureau accurately.” I decided to check and see if insurance carriers are highly accurate in their reporting.
I found a list of the Top 30 Mistakes That Carriers Make When Reporting Information I will list the Top 10 –
1. This policy is a duplicate of a policy already on our database.
2. No specific location city must be blank.
3. No specific location zipcode must be blank or zero.
4. No specific location state must be blank.
5. Policy expiration date – [–/–/–] must be greater than the effective date.
6. Policy total estimated standard premium cannot be less than policy minimum premium.
7. Transaction issue date :[–/–/–] must be within range of transmittal letters.
8. Duplicate header records not allowed.
9. Endorsement __________ is not attached
10. Reason code must be zero.
11. Cancellation/Reinstatement transaction ID code is not a valid code
12. Policy not found on the Rating Bureau database.
13. Too many transactions missing.
14. Too many transactions missing- primary name record
15. There are duplicate transactions within the submission.
16. There are duplicate sequential transactions
17. ARAP factor is required for assigned and experience rated.
18. ARAP factor is below the minimum of 1.00 for policy [—-].
19. Transaction type is not approved for electronic reporting
20. Required Endorsement Report not listed.
21. Required Endorsement Items not included
22. Endorsement Record is not valid
23. No location reported for entity [—].
24. Too many transactions without exactly one header record
25. This policy contains USR’s and cannot be canceled or reinstated. Please review.
26. We have received multiple cancellations with different effective dates
27. Multiple state premiums were reported with the same rating date.
28. There are duplicate non-key field change transactions within the submission.
29. Incorrect Endorsement for this policy period.
30. We have not received the original policy for this change transaction.
If you have any questions on these, please email or call me at (800) 813-1386.
While most of these would not necessarily effect the premiums that you might have to pay, #5, #6, #7, and #9 seem to be premium drivers for your Workers Comp policy. We are not saying that insurance companies make mistakes all the time. It is just when they do, it could cost you $$$.
That is why I recommend always checking everything on your Workers Comp policy whether you have an agent or not. Assuming everything is copacetic may be costing your company premiums.
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