Compensation Insurers and Producers
Workers' Compensation Rates
The Division of
Insurance has approved three changes to the
workers' compensation rating plan filed by the
National Council on Compensation, Inc. (NCCI).
1. The expense
constant is deleted. Policies based upon the
NCCI rates, effective on or after January 1,
1998, will no longer have an expense constant
applied to them.
2. There is an
amendment to the formula by which minimum
premiums will be calculated. Under the new
formula, the minimum premium amounts will
range from $150 to $500. The former method
capped the minimum premium at $1500.
Both of these
changes are intended to benefit small employers
who have been less likely to see the results of
the continuing improvement in loss experience
when expense costs continue to increase.
3. The Division
of Insurance has approved the initial NCCI
filing of prospective loss costs for workers'
compensation insurance. During 1998, an NCCI
member or subscriber may elect to continue
using the NCCI rates or to file a loss cost
adjustment filing that will be used in
conjunction with NCCI loss costs. An NCCI
member or subscriber may convert from rates
to loss costs at any time during 1998 by
filing a loss cost adjustment filing.
However, NCCI members or subscribers must
have loss cost adjustment filings approved to
be used for policies effective on or after
January 1, 1999. Beginning with the calendar
year 1999, the NCCI will only file
prospective loss costs; rates will no longer
If you have any
questions about the changes in the rating plan or
this bulletin, please contact Sarah McNairGrove,
Division of Insurance, P.O. Box 110805, Juneau,
Alaska 998110805, (907) 4654613, or
firstname.lastname@example.org via electronic