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NCCI Catastrophe Code 12 – Use or Lose It Class Code (Of Sorts)


Not All Claims Should Have NCCI Catastrophe Code 12 – But Some Should

The COVID 19 Code Will Save You Premiums

I was reviewing how NCCI was handling the catastrophe code that COVID 19 claims would be coded under to not have the claims count against an employer’s Mod.  <<<extremely important

NCCI Catastrophe Code 12 - COVID Claims
Wikimedia License – -Felipe-Esquivel-Reed

The NCCI Catastrophe Code is an ELE Code Stupid

What is an ELE Code?  It is not a Class Code.  According to NCCI – (See further down for NCCI Catastrophe Code 12)

An Extraordinary Loss Event (ELE) catastrophe is a significant loss event from a workers compensation perspective, which is determined by NCCI or the affected independent worker’s compensation bureau on a case-by-case basis.

When an ELE has been established, the catastrophe number identified with this event is communicated by NCCI through a circular. The catastrophe numbers reserved for identifying ELEs are 11 through 99.

An overview of the reporting requirements for ELE claims are as follows:

  • Unit Statistical—Claims involving an ELE are coded using the established catastrophe code, which is reported in the catastrophe number field on the Loss Record. The rules for catastrophe code reporting are provided in the Statistical Plan, and additional information including a reporting example is provided in the Unit Statistical Reporting Guidebook.
  • Financial Calls—ELE claims are reported in the aggregate Call loss experience, and they are identified individually in Large Loss and Catastrophe Call (#31) and other Financial Calls in accordance with the rules in the Financial Call Reporting Guidebook.
  • Detailed Claim Information (DCI )—Reporting ELE claims is unique in DCI because the Extraordinary Loss Event Claim Indicator is used. Claims involved in an ELE are reported with an ELE Indicator of Y. For additional reporting rules, refer to the Detailed Claim Information Reporting Guidebook.

It is an ELE Code, not a Class Code Stupid

The stupid would be me.  I said that the code would be a Classification Code, not some other type of code.   Check out the link in the first sentence of the article you are reading to see the actual pages – save yourself the search and time as I have provided the description below:

Extraordinary Loss Event (ELE) Codes and Descriptions ELE Code Description 2019

Code 12

Filling NCCI Catastrophe Code Cabanet open drawer
Wikimedia Commons – sailko

Identifies claims attributable to COVID-19 Coronavirus with Accident Dates of 12/1/2019 and subsequent. At this time, the ending accident date has not yet been established. Once the ending accident date has been established, this document
will be updated.

The NCCI Catastrophe Code should make the COVD 19 claims on your loss run not show up in your Experience Mod Factors.

Self Insureds Would Not Receive NCCI Catastrophe Code Credit

I think the above heading goes without saying.   Many times I hear from self-insured Workers Comp programs that I often ignore what amounts to approximately 12% of the workers’ comp market.

Yes, you will not receive any credits as your Experience Mod is actually your Loss Development Factor (LDF).   You should talk to your Actuary or whoever calculates your LDF on receiving some type of credit for the claims.  You may have a tough time convincing them to adjust your LDF for COVID 19 claims.

You Still Have To File Your Claims With Your Carrier

Next week, I will cover how California is handling the COVID 19 claims.  File your claims even if they involve COVID 19 with your carrier.  Then, make sure that the NCCI Catastrophe Code 12 takes them off your Experience Mod Sheets.


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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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