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Most Reclassified Class Code – Which One Topped NCCI List For 2019?

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Reclassified Class Code During 2019 Inspections – Which Code Changed The Most?

NCCI recently released a quick report on the most reclassified class code for 2019.  We have seen this class code very often in the last five years.  Which was one was it?

picture of convenience store reclassified class code NCCI
Wikimedia Commons – Mbrickn

The most reclassified class code for 2018 can be found in an article I wrote earlier.   That Classification Code was 9015 –  Building or Property Management—All Other Employees. 

We received many questions on that reclassification.  Some companies, consultants, and other workers comp experts were a little confused.  We answered them by going over the article.   Check that one out.  The link is in the above paragraph.

The most reclassified class code for 2018 – 2019 was 8006 – the 7-11 QuikTrip code but not for all 7-11’s or QuikTrip’s.   The exact NCCI Class Code moniker is 8006 – Gasoline Station – Self-Service and Convenience/Grocery Retail.

Let’s not cover the whole class code.  I sometimes will provide the whole Class Code page – instead, we will concentrate on which codes were assigned in place of 8006.

NCCI Governing Class Code Definition

One of the most popular questions that we have received in our 24+ years of business is

“Why is our business rated under one classification code.”    The answer from the article is:

The governing code, as defined in NCCI’s Basic Manual for Workers Compensation and Employers Liability Insurance (Basic Manual) Rule 1-B-5, is the basic classification at a specific job or location (other than a standard exception code) that produces the greatest amount of payroll. If a change to a policyholder’s governing class code occurs (as documented on an NCCI Inspection & Classification Report), then the governing code is considered reclassified.

The other one is – wait, we have had Class Code 8810 Clerical/Administrative reclassified the most in our business.  The article was referring to the Governing Class Code.

Code 8006 – Which Class Code Was Substituted?

Employers reclassified class code substitute
Wikimedia Commons – https://pixabay.com/en/users

The answer would be these codes were substituted for 8006.   NCCI was kind enough to share three different Class Codes.

They are:

  • 8033 Store – Meat and Grocery, and Provision Combined – Retail NOC – as a side note look very closely when your business is rated under a NOC (Not Otherwise Classified) operation – Check the 10 Red Flags Article for clarification
  • 9083 – Restaurant – Fast Food
  • 8017 – Store – Retail NOC

I will not cover the exact specifications within each reclassified class code.  Please read the NCCI article.

A quick summary of why the codes were changed:

  • 8033 – handling of fresh meats
  • 9083 – sales receipts for the food and beverage service exceeded 50% of the overall sales.
  •  8017 – did not sell a variety of items that are typically sold at a convenience or grocery store or kiosk operations that sold prepackaged snacks, sandwiches, and beverages.

The 8017 Class Code has created many lively debates over the past few years as this code is very interrelated with so many other reclassified class codes.

If any of this seemed confusing or if you disagree, please comment below.  We would love to hear any questions on the Reclassified Class Code 8006 at any time.

 

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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:

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  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
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