July 2010

Manual Premium – What is It and How Is It Calculated?

Manual Premium Term Of The Day  A Workers Comp Manual Premium is calculated using the classification code payroll multiplied by the assigned manual rate for that code and then divided by 100. As an example, if class code 8810 has an assigned rate of $.62 and the total payroll for

Workers Comp Manual Rate – What Is It And How Is It Calculated?

Workers Comp Manual Rate Starts Premium Calculation Process The Workers Comp Manual Rate flies under the radar most of the time.  Insureds usually concern themselves with the bottom line premiums. There are approximately 600 classification codes plus hundreds more that are state specific. Manual rate is the dollar amount assigned

Footnote References For #3 Return To Work – Readers Requested

Footnote References For Return To Work Requested By Readers The footnote references are for #3 Return to Work.   I had been asked by numerous blog and newsletter readers for APA citations on my research. The two studies are cited below. Please check out my next post to see what #1,

Do Not Ask Us To Do This In Any Workers Comp Situation

A No-Go Workers Comp Situation This is a Workers Comp Situation J&L Risk Management Consultants tries to avoid as much as possible. We have received a few calls this year asking us to help prepare a company’s books for an upcoming Workers Comp audit. We will not ever and have

Merit Rating Plan – Good For Small Safer Companies

Definition – Merit Rating Plan A Merit Rating Plan is designed for the benefit of employers who are not large enough to merit an experience rating. It is based on the loss experience of the smaller business. This plan considers the loss experience for a two year period and allows

Statutory Nonemployees – Two Very Specific Types With One Exclusion

Statutory Nonemployees – A Few Examples  The term Statutory nonemployees is a very hybrid non-employee status.  As read on the IRS Website: There are generally two categories of statutory non-employees: direct sellers licensed real estate agents. They are treated as self-employed for all Federal tax purposes, including income and employment

Statutory Employees Examples For Our Readers From IRS

Statutory Employees – Hybrid Classification  Statutory employees produce many questions from client and article readers.  Workers who are independent contractors under the common law rules, may be considered employees by statute (statutory employees) for some employment purposes. To qualify, they must fall under any one of the following categories and

Interstate Rating Does Not Apply To All States – Some Are Independent

Term Of The Day – Interstate Rating Interstate Rating is experience modification factors that apply across more than one state. They are administered and calculated by the NCCI for employers who have shown payroll for more than one state in the past. Nearly every state in the country participates in

Fronting Agreement Can Be Used For Captives and Non-Captives

 Fronting Agreement Popular With Captives A fronting Agreement covers two types of “foreign” companies and insurers. In general terms, and usually for Workers Comp purposes, one insurer produces a policy for a third party, but all of the losses are the responsibility of a second insurer. This is, of course,

Workers Comp Claims Guide in 7 Words To Remember

Workers Comp Claims Guide – 7 Words To Remember A Workers comp claims guide can be broken down into seven easy to remember words.  I was posting in one of the Workers Comp forums today. I decided to bring over the concept that I posted there earlier today. Let us

West Virginia Workers Comp – Was It Ever Subsidized?

West Virginia Workers Comp Was Subsidized Was West Virginia Workers Comp Carrier Brickstreet subsidized by taxpayers?  I was reading a Opinion Letter in the Charleston Daily Mail about Workers Comp being subsidized for governmental entities in WV. I had to disagree with the letter as the author inferred that WV

Monopolistic Washington May Be Free Market Soon Like West Virginia

Monopolistic Washington Free Market Soon Monopolistic Washington will be a free market soon. Monopolistic states for Workers Compensation such as Washington and South Dakota may be a free market system someday. Actually, Washington may take the plunge into the free market system such as Nevada and West Virginia have recently.

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