NCCI Most Reclassified Class Codes – 2022 vs. 2021
NCCI Most Reclassified Class Codes 2022 Last year, the NCCI Most Reclassified Class Codes for 2021 were covered in this article. If you wish to
August 24, 2023 No Comments
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Classification Codes are numbers assigned to an employer’s job duty of its employees. Many job types may have the same codes.
The most common subject in a premium audit dispute is the employer does not agree with the classification code they were assigned by the agent, underwriter, or premium auditor.
Classification by analogy only adds more contention to the dispute. The rating bureaus will assign class codes that most nearly – but not exactly – represent what an employer does in its business processes.
The codes are assigned by the rating bureaus such as the NCCI, WCIRB, or one of the independent rating bureaus. NCCI initiated a classification code review in 2013 to see if they could either eliminate, combine, or create new class codes.
The total number of codes in 2013 was 635. The Scopes Manual contains full descriptions of all the codes that are also enumerated in the Basic Manual.
The WCIRB (California Rating Bureau) does not have the equivalent to the Scopes Manual. Most of their codes are listed and defined in their version of the Basic Manual.
The rates for each classification code are actuarially determined each year by the rating bureaus. The carriers do not have to use the rates and usually file deviated rates known as Loss Cost Multipliers or deviated rates.
Many employers do not question their governing classification code even if it does not necessarily describe their business. The most expedient way to change the codes is with an inspection by the rating bureaus.
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