NCCI ARD Elimination Change Premium Audits
The NCCI ARD elimination has hit the Work Comp blogosphere over the last few days. The ARD (Anniversary Rating Date) is covered in a guide by NCCI.
The Anniversary Rating Date Guide by NCCI covers the subject more than one could ever expect to see on paper or a screen.
NCCI has, in my opinion, correctly decided to eliminate the ARD and instead just use the policy date. Of course, there will have to be many exceptions.
Texas eliminated the ARD in January of this year.
A blog reader emailed in this question – Will The Elimination of The ARD affect the premium audit schedules. We have our yearly premium audit coming up in November.
My answer is – NCCI is just simplifying and eliminating somewhat archaic terms to lessen the confusion of the WC insurance rating process. There should be no difference in any of your policies or premium audit schedules – in almost all cases.
Your premium audits will be scheduled at the usual time as in the past- within one month of policy expiry.
The only concern you might have if the ARD and policy date is not the same. NCCI will likely align the two dates in the near future. The policy date will be called the Rating Effective Date.
Correction (From NCCI) – The elimination of the ARD has no impact on the rating effective date (RED) used for experience rating purposes.
The bottom line is that, unless you have a unique policy renewal or expiry situation, you will likely see no difference.
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