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PEO Data Session – NCCI Data Conference Earlier This Month

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PEO Data Session – Great Info from NCCI Data Conference

The PEO Data class from the NCCI Data Conference provided a treasure trove of great info nuggets.   The Data Reporting Conference remains of the best sources of great info on workers compensation.   Check it out here. 

PEO data workshop picture meeting room
Public Use License – Meeting Rooms 4

The session of PEO Data Reporting covers 77 pages of info from the class manual.   I will point out a few nuggets of information.  I recommend downloading the complete PEO Data Reporting manual by clicking here.    The manual may require a few minutes to download – please be patient.

Page 3 of the NCCI PEO data presentation contains the NAIC definition of a PEO.

A business entity that enters into agreements with other businesses, whether under a formal contract or otherwise, under which the PEO assumes or shares employment responsibilities for all or a significant number of worksite employees of the other business, regardless of the terminology used by the parties to describe the relationship. This does not include a business entity that recruits and hires its own employees, assigns them on a temporary basis, and customarily attempts to reassign them when finished with an assignment.

The important part of the definition – what a PEO is not.

Sometimes an employer will mistake a PEO for an ASO or an HRO.    I will not cover the definitions of each type of organization.   The main concept to remember is to READ THE CONTRACT very carefully.   We had assisted at least two companies that thought they were in a PEO when they were actually in an ASO agreement.  An ASO is usually not responsible for obtaining Workers Compensation through the ASO.    ASO’s and HRO’s are not undesirable companies.  Make sure your company ends up with the company you contracted for services.

Check out Page 6-states that do not require a PEO to register or regulates their operation.

The material on pages 6 – 11 covers critical terms:

  • Master Coordinated Policies  (MCP)
  • Master Policy
  • Client Direct Purchase

Each state has its own set of rules on allowable types of PEO operational structures.    The allowed structure should be reviewed very carefully before signing on with a PEO.  Why? – Under a PEO, would your company have an individualized E-Mod or would your company assume the PEO’s Mod?  The PEO’s Mod is almost always preferable. 

I recommend reading all 77 pages.    No one including myself or NCCI is saying that PEO’s are high-risk or an unwanted risk management technique.  In fact, a properly handled PEO agreement can save a large amount of premiums.

So, go ahead and download the PEO data reporting workshop manual.

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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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