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Workers’ Compensation

The Property & Casualty Section of the Division of Insurance handles such duties as reviewing and approving workers’ compensation policy rates, language, composition and format, as well as collecting quarterly and annual financial statements from private workers’ compensation insurers.

Changes in Voluntary Insurance Loss Costs and Assigned-Risk Market Rates, Effective March 1, 2018, and March 15, 2018:

Commissioner Barbara D. Richardson has approved two filings from the National Council on Compensation Insurance ("NCCI").

Filing 72357 – Effective March 1, 2018: Provides for an overall decrease of 2.3% in the Nevada workers’ compensation voluntary-market loss-cost level and an overall increase of 0.2% in the workers’ compensation assigned-risk rate level.

Impacts to each individual classification of business will vary based on that classification’s recent experience. The range of impacts would be between -24% and +19%.

Filing 73211 – Effective March 15, 2018: Provides for an additional overall average increase of 4.7% to each of the voluntary loss cost and assigned risk rate levels. This is a “law-only” filing in response to the adoption by the Nevada Division of Industrial Relations (DIR) of the Actuarial Annuity Table, pursuant to NRS 616C.495(5), as amended by Assembly Bill 458 (2017). The DIR enacted Regulation R043-17, effective as of December 4, 2017, in response to the statutory requirement to update the table of present values used to calculate the lump-sum payments of permanent partial disability (PPD) awards.

With regard to changes for individual classifications, the impacts of filing 73211 in particular range from -0.5% (Classification Code 9077 – United States Armed Service Risk) to +8.6% (Classification Code 7425 – Aviation – Helicopters – Flying Crew). The impacts to individual classification codes vary in part due to differences in the proportions of permanent partial disability claims to total claims for each classification code, as well as the effects of rounding.

Combined Overall Effect:
From the combination of filings 72357 and 73211, there would arise an overall average increase of 2.3% to the level of voluntary loss costs and an overall average increase of 4.9% to the assigned-risk rate level.

The tables below illustrate by industry group the proposed average changes arising from each filing and in combination:

Voluntary Loss-Cost Change


Industry Group

 Average Change Due to Filing 72357

 Average Change Due to Filing 73211

Combined Average Impact

Contracting

-1.5%

+4.6%

 +3.0%

Goods & Services

-1.2%

+5.0%

+3.8%

Manufacturing

-3.2%

+4.7%

            +1.4%

Office & Clerical

-3.7%

+4.2%

            +0.3%

Miscellaneous

-1.1%

+5.2%

            +4.0%

Overall

-2.3%

+4.7%

            +2.3%


Assigned-Risk Rate Change  


Industry Group

Average Change Due to Filing 72357

Average Change Due to Filing 73211

Combined Average Impact

Contracting

+1.1%

+4.6%

            +5.8%

Goods & Services

+1.4%

+5.0%

            +6.5%

Manufacturing

-0.7%

+4.7%

            +4.0%

Office & Clerical

-1.1%

+4.2%

            +3.1%

Miscellaneous

+1.5%

+5.2%

            +6.8%

Overall

+0.2%

+4.7%

   +4.9%

While the combined impacts of filings 72357 and 73211 produce modest overall increases, the previously approved annual NCCI loss-cost and assigned-risk rate filing,effective March 1, 2017, contained an overall average decrease of 10.7 percent for voluntary-market loss-cost levels and an overall average decrease of 10.5 percent for workers’ compensation insurance assigned-risk rates. Furthermore, the workers’ compensation experience analyzed by NCCI in filing 72357 has remained favorable, and, based on recent historical data and the application of its actuarial methodology, NCCI determined that favorable experience for both indemnity and medical losses would justify lower loss costs, despite modest annual growth in required benefits provided by workers’ compensation coverage.

The overall loss-cost decrease for the voluntary market is driven by two main considerations:

-3.1% impact due to combined changes in loss experience (-3.3%) and changes in loss development (+0.2%). Workers’ compensation losses consist of indemnity and medical components. Improved experience in indemnity losses resulted in an impact of -5.7% on that component of losses, while revised loss-development assumptions resulted in a slight countervailing impact of +0.6%. Improved experience in medical losses resulted in an impact of -1.3% on that component of losses, while revised loss-development assumptions resulted in a further impact of -0.1%. Averaging the impact of indemnity and medical losses, based on the relative prevalence of such losses, results in a total impact of -3.1%.

+0.9% impact due to benefit changes. Of this increase, +0.7% is due to changes in the Medical Fee Schedule issued by the Division of Industrial Relations – which took effect on February 1, 2017. The remaining +0.2% impact is the result of the increases in the maximum weekly benefit amounts effective July 1, 2016. These modest increases to workers’ compensation benefits are similar in magnitude to the changes reflected in prior years’ filings. Therefore, it remains the case that benefit adequacy is not being eroded; rather, historical and estimated prospective loss experience is sufficiently favorable to justify decreases in the cost of workers’ compensation coverage for most classifications of employers.

-0.1% impact due to a decrease in the provision for loss-adjustment expenses from 16.4% to 16.3% of losses.

For the assigned-risk market, in addition to the aforementioned -2.3% impact to loss costs, there is an offsetting impact of +2.6% due to the increase in the Servicing Carrier Allowance (SCA) arising from the recently concluded bid process for assigned-risk servicing carriers, as a result of which the new selected carriers began servicing policies on January 1, 2018. Among the options available among the candidates during the recent bid process, all of the possibilities involved slightly higher costs than the SCA selected for the 2015-2017 bid cycle.

Adoption of Revised Loss Costs: The revised loss costs must be adopted on their effective date and applied to all policies on or after the effective date.

With regard to the 2018 loss-cost revisions, any policies issued or renewing between March 1 and March 14, 2018, inclusive, would be subject to the loss costs or assigned-risk rates in filing 72357 at that time. Any policies issued on or after March 15, 2018, would be subject to the loss costs or assigned-risk rates in filing 73211.


Insurers need only file new loss-cost multiplier worksheets if they are changing their loss-cost multipliers. Otherwise, the current loss-cost multipliers will continue to apply.

Large Deductible Workers’ Compensation Program Filing Requirement: As outlined in Bulletin 00-003, insurers are required to file each risk written with a Large Deductible ($25,000 or greater). Form NDOI-1112 (Revised July, 2017), the Informational Filing for Large Deductible Workers’ Compensation, must be submitted to the Commissioner for acceptance within 60 days of issuing the applicable Large Deductible policy.

For information regarding self-insured associations and self-insured employers, please see the Division of Insurance’s Self-Insured Section.

For information regarding employer workers’ compensation coverage compliance, claims handling and complaints, please contact the Division of Industrial Relations.

To report workers’ compensation fraud, please contact the Attorney General’s Workers' Compensation Fraud Unit.

 

Workers’ Comp Resources

Forms and Bulletins

Rate Filings / Loss-Cost Expense Worksheet

Workers’ Compensation Issues: Bulletin 00-002

Workers’ Compensation Deductible Programs: Bulletin 00-003

Terrorism Coverage Cannot be Excluded From Nevada Workers’ Compensation Insurance Policies: Bulletin 03-002  

2018 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs and Assigned-Risk Rates Law-Only Filing Effective March 15, 2018

NCCI Circular: Approval of Voluntary Loss Costs, Assigned-Risk Rates, and Rating Values to Be Effective March 1, 2018

Advisory Loss Costs and Rating Values Effective 3/15/2018

Assigned-Risk Rates and Rating Values Effective 3/15/2018

Advisory Loss Costs and Rating Values Effective 3/1/2018  

Assigned-Risk Rates and Rating Values Effective 3/1/2018  

2017 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs and Rating Values and Assigned-Risk Rates to Be Effective March 1, 2017 

Advisory Loss Costs and Rating Values Effective 3/1/2017 

Assigned-Risk Rates and Rating Values Effective 3/1/2017 

2016 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs and Rating Values and Assigned-Risk Rates to Be Effective March 1, 2016

Advisory Loss Costs and Rating Values Effective 3/1/2016

Assigned-Risk Rates and Rating Values Effective 3/1/2016

2015 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs and Rating Values and Assigned-Risk Rates to Be Effective March 1, 2015

Advisory Loss Costs and Rating Values Effective 3/1/2015

Assigned-Risk Rates and Rating Values Effective 3/1/2015

2014 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs and Rating Values and Assigned-Risk Rates to Be Effective March 1, 2014

Advisory Loss Costs and Rating Values Effective 3/1/2014

Assigned-Risk Rates and Rating Values Effective 3/1/2014

2013 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs and Rating Values and Assigned-Risk Rates to Be Effective March 1, 2013

Advisory Loss Costs and Rating Values Effective 3/1/2013

Assigned-Risk Rates and Rating Values Effective 3/1/2013

2012 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs and Assigned Risk Rates to Be Effective March 1, 2012

Advisory Loss Costs and Rating Values Effective 3/1/2012

Assigned Risk Rates and Rating Values Effective 3/1/2012

2011 NCCI Loss Costs and Assigned-Risk Rates

Advisory Loss Costs and Rating Values Effective 3/1/2011

Assigned Risk Rates and Rating Values Effective 3/1/2011

2010 NCCI Loss Costs and Assigned-Risk Rates

Advisory Loss Costs and Rating Values Effective 3/1/2010

Assigned Risk Rates and Rating Values Effective 3/1/2010

2009 NCCI Loss Costs and Assigned-Risk Rates

Advisory Loss Costs and Rating Values Effective 3/1/2009

Assigned Risk Rates and Rating Values Effective 3/1/2009