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NCCI Rules and Procedures for Workers Compensation

What they are. Who they work for. What they do

In this edition of the Work Comp Consultants Video Network we talk about NCCI, the National Council on Compensation Insurance, what they are, who they work for and what they do. As the largest private data and statistical organization for workers compensation, NCCI rules are important and make an impact on everything from how to calculate workers comp premiums to how to classify a business. Here's some information you should know!

Video Outline:
  • NCCI Rules and Procedures

  • What is NCCI? Who do they work for? What do they do?

  • NCCI performs many important workers compensation functions for state governments and insurance companies.

  • NCCI is the Advisory Organization for 34 States.

  • This is a list of the Non-NCCI States:

    • California
    • Delaware
    • Indiana
    • Massachusetts
    • Michigan
    • Minnesota
    • New Jersey
    • New York
    • North Carolina
    • North Dakota
    • Ohio
    • Pennsylvania
    • Texas
    • Washington (state)
    • Wisconsin
    • Wyoming

  • Some state legislatures modify NCCI rules

Video Transcription:

NCCI rules on workers compensation are followed in most states, but not all…

Hi! I'm Randy Sieberg. Welcome to another edition of WorkCompConsultants Video Network. Today we're talking about NCCI rules and procedures. So just What is NCCI, who do they work for and what do they do?

The National Council on Compensation Insurance, otherwise known as NCCI, is a private organization. They're the largest collector and provider of statistical information on workers compensation data in this country. They provide a wide range of specialized services to various regulatory authorities, insurance companies, state legislatures, other independent rating bureaus and more. They gather data, analyze and prepare workers comp industry trends, they provide rate making recommendations and proposed legislative impact studies to about 40 state governments and over 900 insurance companies

To say NCCI is like a silent elephant in the room would be a real understatement! As you can see they perform many important workers compensation administrative functions for both participating States and subscribing insurance companies.

NCCI is the workers compensation advisory organization for 34 states.

They write, publish and maintain the rules and procedures that determine how workers comp premiums are calculated and how employer operations are assigned into workers comp class codes. They also perform Experience Modification calculations, administer Assigned Risk Plans and are involved in the appeals and dispute process for many states. NCCI also develops and files with various state authorities policy forms for its member insurance companies.

Here's a list of the NON-NCCI States.

Of the Non-NCCI states, Ohio, Washington State, Wyoming and North Dakota are radically different and are considered the Monopolistic states, we'll talk more about monopolistic states in another edition. Some of the remaining non-NCCI states operate their own independent advisory organizations. Some often follow NCCI rules for computing premiums and classifications and some even use NCCI manuals and while there may be some similarities, you'll find California, Texas, Delaware and Pennsylvania to be quite different in the rules of premium calculation and code classification.

And of course it's not quite as easy as that! You’ll find that even among those states using the services of NCCI, rules can be different. Some state legislatures modify NCCI's rules to better reflect how they want the rules to apply within their state.

Confusing? You Bet!

The interpretation and application of work comp rules set forth by NCCI are complicated. Throw in the Non-NCCI states and you have a real jurisdictional mess on your hands, especially when it comes to work comp rules and procedures!

I hope this edition has been helpful.

For more information on NCCI Rules, Non-NCCI States or on the Monopolistic States, visit our website at WorkCompConsultant.com

Thanks for watching!

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