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Texas Officially Joins NCCI System – Good Move Overall


Texas Officially Joins The NCCI System

Texas officially joined the NCCI system today as the Department of Insurance files a petition to adopt NCCI’s Experience Rating Plan Manual.

Graphic Of Map Texas Officially NCCI

Earlier in the year, The Texas Department of Insurance signed order 3455 adopting NCCI’s

Statistical Plan for Workers Compensation and Employers Liability Insurance (Statistical Plan), including Texas exceptions. This manual becomes effective for units with policy effective dates January 1, 2015 and subsequent, and is optional for prior policy effective dates.

The state of Texas will also have many exceptions to the NCCI manual.   The state may, over time,  decide to remove more of the exceptions.

Adopting the manual does not mean Texas cannot reject any part of the NCCI manual.  They do not have to necessarily accept the rates promulgated by NCCI.   The next few years should be interesting as Texas was very independent in its WC operations.

One area to note is that polices prior to January 1, 2015 may also be affected by the adoption of the NCCI rules.

One has to wonder if NCCI will push Texas to not keep the opt-out system which is in place presently in Texas.

See tomorrow’s article on one major step that Texas has taken in the area of construction.  Texas has at least started the conversation on not allowing construction firms to opt-out of WC coverage.

Selena NCCI System memorial
Wikimedia commons – Lawikitejana

Most of the companies that we have consulted with that decided to opt out of  WC coverage for their employees have ended in disastrous results once they have a series of claims or a few severe accidents.

West Virginia was very successful in adopting the NCCI manuals and ratemaking process.  There have been many reductions in the rates charged to policyholders since the switch to NCCI.

Texas policyholders should see rate reductions in the future.  However, the opt-out system may be shown to be a violation of the Law of Large Numbers.   This may affect any type of rate reductions.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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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