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.

Guidance for Workers' Compensation Insurers Regarding the Effects of the COVID-19 Emergency

Notice for Nevada Small Businesses: Workers' Compensation Premium Relief Due to COVID-19 Shutdowns    

Changes in Voluntary Insurance Loss Costs and Assigned-Risk Market Rates, Effective March 1, 2023:

Commissioner Barbara D. Richardson has approved the annual workers' compensation voluntary loss-cost and assigned-risk rate filing from the National Council on Compensation Insurance ("NCCI"). Filing 110143, effective March 1, 2023, provides for an overall decrease of 5.2% in the Nevada workers’ compensation voluntary-market loss-cost level and an overall decrease of 3.6% in the workers’ compensation assigned-risk rate level. 

The indications in this filing are based predominantly on the favorable experience of Policy Years 2018, 2019, and 2020 (i.e., for policies written during those years). Some of the data reflect the experience from the timeframe of the COVID-19 pandemic, a period which has also been characterized by decreasing overall loss experience. However, NCCI has decided to assign 1/6 (2/12) of the weight to the filing indication of the 2020 Policy Year, while Policy Years 2018 and 2019 each have the remaining 5/12 of the weight.

NCCI has noted that loss experience in 2020 has been highly favorable, but also observed that “While some pandemic‐related trends could persist into the future, some factors may be temporary.” Preliminary loss-ratio data for Calendar-Accident Year 2021 (Calendar-Accident Year information gets reported more quickly than Policy Year information) suggest that loss ratios for 2021 rebounded to levels similar to those of 2018 and 2019 (while still remaining favorable and supportive of the decrease being proposed). Therefore, NCCI opted to place less weight on 2020 experience than its previous methodology would have allocated. However, other methodological changes in the filing result in the overall indication being close to what it would have been under the previous methodology.   

NCCI’s data suggest that claim frequency continues to decline both in Nevada and countrywide due to improvements in automation and workplace safety. Moreover, there are widespread shifts to telecommuting in many industries, and many of these shifts are expected to be sustained going forward. NCCI is proposing decreases in the 2022 loss costs in all states except one.

The tables below illustrate by industry group the proposed average changes arising from this filing.

Voluntary Loss-Cost Change 

Assigned-Risk Rate Change  

Impacts to each individual classification of business will vary based on that classification’s recent experience. The range of impacts would be between -25.5% and +16.7%. The vast majority of classifications would receive decreases, in some cases substantial decreases, as a result of this filing.

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

● -4.1% impact due to combined changes in loss experience and changes in loss development. During the time period being analyzed, material declines in claim frequency have continued throughout the country, including in Nevada.

● -1.8% impact due to changes in trend assumptions, primarily a result of revising the projected annual medical loss-ratio trend from -4.0% to -4.5% while the annual indemnity loss-ratio trend remains at -3.0%.  NCCI is projecting continued decreases to both indemnity and medical loss ratios in the future as a result of declining claim frequency; however, the decrease in medical claim frequency is expected to slightly accelerate. Medical costs in the workers’ compensation system have remained stable despite general price inflation.

● +0.2% impact due to benefit changes. This reflects +0.2% impact due to changes in the Medical Fee Schedule issued by the Division of Industrial Relations. 

It is noteworthy that, as in prior years, the loss-cost and rate decreases proposed by NCCI coincide with modest increases to workers’ compensation medical benefits. Therefore, benefit adequacy is not being eroded; rather, historical and estimated prospective loss experience is sufficiently favorable to justify substantial decreases in the cost of workers’ compensation coverage for most classifications of employers.

● -0.3% impact due to changes in loss-adjustment expenses, which declined slightly for Nevada, from 18.6% of losses to 18.3% of losses. This is due to the change in the Defense and Cost Containment Expense (DCCE) provision, which is proposed to decrease from 9.2% to 8.9% as these expenses have been declining in 2019 and 2020.

For the assigned-risk market, in addition to the aforementioned -5.2% impact to loss costs, there is an additional impact of approximately +1.7% due to changes to assumptions pertaining to expenses on the assigned-risk market. Specifically, the Assigned-Risk Loss-Cost Multiplier, which establishes the multiplicative difference between the voluntary-market loss costs and the assigned-risk rates, is proposed to increase from 1.493 to 1.519. This increase is driven by two influences: (i) the modest increase in the Servicing Carrier Allowance from 20.3% to 21.1% of the assigned-risk market premium; and (ii) the increase of the Uncollectible Premium Provision in the assigned-risk market from 1.5% of premium to 2.0% of premium, as a recent evaluation of long-term premium collection has shown that the historical proportion of uncollectible premium through the lifetime of assigned-risk policies has been in the vicinity of 2.0%. Overall, the impact on the assigned-risk market from this filing is calculated as 100%*[(1 - 0.052)*(1 + 0.017) - 1] = approximately -3.6%.

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.

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  

2023 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs, Assigned-Risk Rates, and Rating Values to Be Effective March 1, 2023  

Advisory Loss Costs and Rating Values Effective 3/1/2023 

 Assigned-Risk Rates and Rating Values Effective 3/1/2023   

2022 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Costs, Assigned-Risk Rates, and Rating Values to Be Effective March 1, 2022

Advisory Loss Costs and Rating Values Effective 3/1/2022 

Assigned-Risk Rates and Rating Values Effective 3/1/2022

2021 NCCI Loss Costs and Assigned-Risk Rates

To find the NCCI filing documentation for the filing effective March 1, 2021, follow the steps below.

1. Go to SERFF Filing Access at https://filingaccess.serff.com/sfa/home/nv.
2. Click the "Begin Search" button at the top left-hand corner of the screen.
3. You will see a user agreement. Click on "Accept" in the lower center of the screen.
4. Within the Filing Search window, input the following within the field called "SERFF Tracking Number": NCCI-132592485
5. Click the "Search" button in the lower center of the screen.
6. You will see an entry for one result from "National Council on Compensation Insurance, Inc." Click anywhere within the row displaying that result.
7. You will see a box entitled "Filing Summary". Within that box, navigate to the section entitled "Attachments". From there, you will be able to download PDF files containing the approved loss costs and assigned-risk rates.

The NCCI Circular: Approval of Voluntary Loss Costs, Assigned-Risk Rates, and Rating Values to Be Effective March 1, 2021 - is contained in the file entitled "NV-2020-04.pdf".
The Advisory Loss Costs and Rating Values Effective 3/1/2021 are contained on pages 23-29 of the file entitled "NV 3-1-2021 Filing.pdf".
The Assigned-Risk Rates and Rating Values Effective 3/1/2021 are contained on pages 31-37 of the file entitled "NV 3-1-2021 Filing.pdf".

2020 NCCI Loss Costs and Assigned-Risk Rates

NCCI updated its loss costs and assigned-risk rates effective September 1, 2020, to account for revisions to the Actuarial Annuity Table promulgated by the Division of Industrial Relations to reduce the discount rate for calculating permanent partial disability lump-sum benefits from 2.98% per annum to 1.46% per annum. To find the NCCI filing documentation for the filing effective September 1, 2020, follow the steps below.

1. Go to SERFF Filing Access at https://filingaccess.serff.com/sfa/home/nv.
2. Click the "Begin Search" button at the top left-hand corner of the screen.
3. You will see a user agreement. Click on "Accept" in the lower center of the screen.
4. Within the Filing Search window, input the following within the field called "SERFF Tracking Number": NCCI-132454994
5. Click the "Search" button in the lower center of the screen.
6. You will see an entry for one result from "National Council on Compensation Insurance, Inc." Click anywhere within the row displaying that result.
7. You will see a box entitled "Filing Summary". Within that box, navigate to the section entitled "Attachments". From there, you will be able to download PDF files containing the approved loss costs and assigned-risk rates.

The Advisory Loss Costs and Rating Values Effective 9/1/2020 are contained on pages 15-21 of the file entitled "NV 9.1.2020 Law-Only Filing.pdf".
The Assigned-Risk Rates and Rating Values Effective 9/1/2020 are contained on pages 23-29 of the file entitled "NV 9.1.2020 Law-Only Filing.pdf".

NCCI Circular: Approval of Voluntary Loss Costs, Assigned-Risk Rates, and Rating Values to Be Effective March 1, 2020 

Advisory Loss Costs and Rating Values Effective 3/1/2020

Assigned-Risk Rates and Rating Values Effective 3/1/2020

2019 NCCI Loss Costs and Assigned-Risk Rates

NCCI Circular: Approval of Voluntary Loss Cost and Assigned-Risk Rates - Law-Only Filing Effective September 1, 2019

Advisory Loss Costs and Rating Values Effective 9/1/2019

Assigned-Risk Rates and Rating Values Effective 9/1/2019

NCCI Circular: Approval of Voluntary Loss Costs and Rating Values and Assigned-Risk Rates to Be Effective March 1, 2019

Advisory Loss Costs and Rating Values Effective 3/1/2019

Assigned-Risk Rates and Rating Values Effective 3/1/2019

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