NCCI Rate Decrease Approved
Insurance Commissioner, Kevin McCarty, accepted the National Council on Compensation Insurance’s (NCCI) revised rate filing and issued an order approving a rate decrease of 6.8% on October 26, 2009. The Office and NCCI had previously reached an agreement on the amount of the decrease, 6.8%, but the Office took issue with some of the NCCI’s methodology, including NCCI’s calculation of policyholder dividends, cost of capital, investment yields, minimum premiums and proposed roofing rate. The order directed NCCI to modify its original filing and resubmit it which occurred on Oct. 19. A new order was issued approving the revised filing with an effective date of January 1, 2010. The filing now means rates have decreased a cumulative 63.2% since 2003.
The overall average rate impact at an industry group level will be as follows:
Percent Change
Industry Group 1/1/10 Filing Cumulative 10/1/03–1/1/10
Manufacturing -4.7% -60.0%
Contracting -10.8% -65.4%
Office and Clerical -6.2% -63.3%
Goods and Services -3.8% -62.2%
Miscellaneous -6.7% -62.1%
TOTAL -6.8% -63.2%