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Class Codes 8742 and 8810 Revisited

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Revisited Class Codes 8742 and 8810

Some of the most read articles on my blog involve Classification Codes 8810 and 8742. These two class codes can sometimes be very confusing as they are very general. They cover so many jobs and job functions in a company. There is one caveat to these two class codes – especially 8810. If an employee performs any other job function that would place them in a higher classification, premium auditors will place the person in the highest code. This is allowed by the NCCI and State Rating Bureau rules. Even if the employee works for only a few minutes in a job task that places them at a higher rate, they will be removed from the 8810 or 8742 codes.

Receiving Class Codes calls ad emails
Wikimedia Commons – Peter J. Souza

We often receive phone calls and emails not long after an employee or group of employees have been recently reclassified by the premium auditor. Classification Codes 8810 and 8742 are called Standard Exception Codes. The reclassification sometimes results from a miscommunication between the employer and premium auditor. One recommended way to avoid any miscommunications during a Workers Comp premium audit is by designating one person to provide any requested material to and answer questions from the premium auditor.

Standard Exception Codes are normally not included in the governing classification. These are clerical, outside sales, and often (but not always) drivers. The governing classification is the one that generates the most payroll other than the standard exceptions codes.

There are many employees that can likely be classified under 8810 and 8742 in an organization as these class codes can describe many jobs in an organization – not just clerical, outside sales, and drivers. The Standard Exception codes have some of the longer descriptions in any of the class code manuals.

Laptop with class codes vector
123RF

I have noticed very recently some of the class codes now include an “all employees” notation. The “all employees” designation on a class code means there are not Standard Exception Codes that will be accepted for a certain type of employer. Some the recent class code changes have eliminated 8810 and 8742 from being used by certain companies. I am not saying these were fair decisions. They are what we have to work with once they are changed by NCCI or the State Rating Bureau.
If a group of your employees that were classified as 8810 or 8742 have been reclassified, you may not want to just accept these changes. Always call in a non-agent expert if you feel that the changes on the premium audit bill were not correct.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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