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WCIRB Pure Premium Rates Are Not Insurance Carrier Rates


WCIRB Pure Premium Rates Not The Same As Workers Comp Insurance Rates (Usually)

The WCIRB pure premium rates generated a few calls over the last two weeks.    Insurance companies file their own loss cost multipliers or LCM’s that deviate from those rates.

The Workers  Compensation Insurance Rating Bureau is the rate bureau for specifically California.

question mark wcirb pure premium rates in circle
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The insurance carriers can increase or decrease their rates from the pure premium rates.  They are also referred to as advisory rates.

A definition of advisory pure premium rates by the WCIRB:  (See this online PDF File for a Rate Filing Example. )

Pure premium rates, which reflect loss costs including loss adjustment expenses per unit of exposure, are only advisory and insurers are not required to use either the proposed or the approved pure premium rates in establishing the rates it will charge.

The rates have to be approved by the Insurance Commissioner at a hearing.   The Commissioner has rejected any pure premium rate increases in the past.

The one great development is that companies are researching their policy information.   Reading your policy is the first step in reducing your Workers Compensation premiums.

Please note that I am only referring to the rates.  I am not referring to the Classification Codes.  If your company has what you feel are inaccurate classification codes, those may be disputed.   And where do you find the procedure?   Yes, that is right – in your Workers Compensation policy.

The Insurance Commissioners in all states require that it be in every policy.   No, really – it exists inside your policy.

The pure premium rates are reviewed for changes constantly by the WCIRB’s Actuarial and other committees.   The bureau publishes any rate change recommendations on their website in various reports.    The reports are usually produced on a semi-annual basis.

You may want to surf their website for more subjects beyond the WCIRB pure premium rates.


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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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