Contact: Yeraldin
Deavila, Public Information Officer
Phone: (775)
687-0772
E-mail: ydeavila@doi.nv.gov
FOR IMMEDIATE RELEASE–
March 1, 2018
Nevada Insurance
Commissioner Approves Combination of Filings for Moderate Workers’ Compensation
Loss-Cost and Assigned-Risk Rate Changes
CARSON
CITY – Commissioner Barbara D.
Richardson approved two filings from the National Council on Compensation
Insurance (“NCCI”). Compared to previous years, these filings are different as
one of them will take effect March 1, 2018 while the other will take effect on
March 15, 2018.
Annual
Loss-Cost and Assigned-Risk Rate Filing
An average decrease of 2.3 percent for Nevada
workers’ compensation voluntary insurance loss costs and an average increase of
0.2 percent for Nevada workers’ compensation assigned-risk rates will take
effect on March 1, 2018. This filing is based on recent improvements in
workers’ compensation claim experience in the Nevada market, as well as the
slightly increased costs for assigned-risk servicing carriers which were
selected to administer assigned-risk policies effective January 1, 2018.
Second
Loss-Cost and Assigned-Risk Rate Filing in Response to Actuarial Annuity Table
Updates
On March 15, 2018, a second NCCI filling will take effect, which responds to
recent changes in Nevada law. Assembly Bill 458 of the 2017 Legislative Session
required the Nevada Division of Industrial Relations (DIR) to annually update
the Actuarial Annuity Table of present values used to calculate the lump-sum
payments of permanent partial disability (PPD) awards. In response to this
statutory mandate, the DIR promulgated Regulation R043-17, which updated the
Actuarial Annuity Table effective December 4, 2017. By using a lower interest
rate than previously prescribed, this update increases the benefit amounts of
those claimants electing lump-sum PPD payments. The second NCCI loss-cost and
rate filing was made to account for the impact of this change on Nevada
workers’ compensation system costs, which is an overall average increase of 4.7
percent to both voluntary loss costs and assigned-risk rates.
Combined
Impact of Filings
For policies issued or renewing on or after March
15, 2018, the combined average effect of the two recently approved filings will
be an overall average increase of 2.3 percent to the level of voluntary loss
costs and an overall average increase of 4.9 percent to the assigned-risk rate
level. Changes for individual employers may vary from this combined impact
depending on the NCCI Classification Code to which an employer’s operations are
assigned.
Nevada’s
Low Workers’ Compensation Costs
Despite the modest overall increases approved to
take effect in March 2018, the levels of voluntary loss costs and assigned-risk
rates remain near historic lows in Nevada. Previously, effective March 1, 2017,
Commissioner Richardson approved the largest workers’ compensation loss-cost
decrease (10.7 percent) since 2004 and the largest assigned-risk rate decrease
in Nevada history (10.5 percent).
The Division
encourages employers to comparison shop for the best rate. Nevada’s market
remains competitive, so it pays to review all options. Nevada’s reasonable
workers’ compensation rates are among many reasons why businesses should
consider establishing themselves in Nevada.
The approved changes
and other detailed information can be found on the Nevada Division of Insurance
website by visiting: http://doi.nv.gov/Insurers/Property-Casualty/Filing-Information/Workers-Compensation/. You may also visit OSHA’s website for
further guidance on improving workplace safety at http://dir.nv.gov/OSHA/Home/.
About the Nevada Division of Insurance
The State of Nevada Division of Insurance, a Division of the Nevada
Department of Business and Industry, protects the rights of Nevada consumers
and regulates Nevada’s $14 billion insurance industry. The Division of
Insurance has offices in Carson City and Las Vegas. In 2017, the Division
investigated more than 3,200 consumer complaints and recovered over $5 million
on behalf of consumers. For more information about the Division of
Insurance, visit DOI.NV.GOV.
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