The National Council on Compensation Insurance (NCCI) is a U.S. insurance rating and data collection bureau specializing in workers' compensation. Operating with a not-for-profit philosophy and owned by its member insurers, NCCI annually collects data covering more than four million workers compensation claims and two million policies. The bureau uses this information to provide:
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
Data is a set of values of subjects with respect to qualitative or quantitative variables.
Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for the tort of negligence. The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system is known as "the compensation bargain". One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards. The system of collective liability was created to prevent that, and thus to ensure security of compensation to the workers. Individual immunity is the necessary corollary to collective liability.
- Analysis of industry trends in workers' compensation costs
- Workers compensation insurance rate and loss cost recommendations
- Cost analysis of proposed legislation regarding workers' compensation regulations and benefits
- Special claims research projects
- Analysis of judicial and regulatory decisions on workers' compensation
- Cooperation with other data-collection agencies to ensure a credible database
In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production.
Legislation is law which has been promulgated by a legislature or other governing body or the process of making it. Before an item of legislation becomes law it may be known as a bill, and may be broadly referred to as "legislation", while it remains under consideration to distinguish it from other business. Legislation can have many purposes: to regulate, to authorize, to outlaw, to provide (funds), to sanction, to grant, to declare or to restrict. It may be contrasted with a non-legislative act which is adopted by an executive or administrative body under the authority of a legislative act or for implementing a legislative act.
A database is an organized collection of data, generally stored and accessed electronically from a computer system. Where databases are more complex they are often developed using formal design and modeling techniques.
NCCI also produces a number of manuals that govern the details of how Workers Compensation insurance premiums are calculated in many (but not all) states. Among these manuals are the Basic Manual (which sets out rules on the classification code system, payroll amounts used to compute premiums, and changes in classifications and premiums); Experience Rating Manual (which details rules governing how Experience Modification Factors are computed and used in Workers Compensation insurance premiums); and the Scopes Manual (which details how NCCI intends the various classification codes to be assigned to various kinds of employment).
In the insurance industry in the United States, an experience modifier or experience modification is an adjustment of an employer's premium for worker's compensation coverage based on the losses the insurer has experienced from that employer. An experience modifier of 1 would be applied for an employer that had demonstrated the actuarially expected performance. Poorer loss experience leads to a modifier greater than 1, and better experience to a modifier less than 1. The loss experience used in determining the modifier typically comprises three years but excluding the immediate past year. For instance, if a policy expired on January 1, 2018, the period reflected by the experience modifier would run from January 1, 2014 to January 1, 2017.
NCCI also computes the experience modification factors used in most states to adjust employers' Workers Compensation insurance premiums, using loss and payroll data reported by the various member insurance companies that are part of NCCI.
NCCI provides data and analysis to insurance companies, state workers' compensation insurance funds, regulatory authorities, employers needing information on workers' compensation issues, and non-governmental workers' compensation agencies. The bureau is headquartered in Boca Raton, Florida with regional offices throughout the United States. The current president and CEO is William Donnell. A board of directors composed of representatives of affiliated insurers and outside organizations oversees the bureau's activities.
In the United States, a state is a constituent political entity, of which there are currently 50. Bound together in a political union, each state holds governmental jurisdiction over a separate and defined geographic territory and shares its sovereignty with the federal government. Due to this shared sovereignty, Americans are citizens both of the federal republic and of the state in which they reside. State citizenship and residency are flexible, and no government approval is required to move between states, except for persons restricted by certain types of court orders.
Boca Raton, often known as simply Boca, is the southernmost city of Palm Beach County, Florida, United States, first incorporated on August 2, 1924 as "Bocaratone," and then incorporated as "Boca Raton" in 1925. The 2015 population estimated by the U.S. Census Bureau was 93,235. However, approximately 200,000 people with a Boca Raton postal address reside outside its municipal boundaries. Such areas include newer developments like West Boca Raton. As a business center, the city also experiences significant daytime population increases. It is one of the wealthiest communities in South Florida. Boca Raton is 43 miles (69 km) north of Miami and is a principal city of the Miami metropolitan area, which had a population of 6,012,331 people as of 2015.
The president is a leader of an organization, company, community, club, trade union, university or other group. The relationship between the president and the chief executive officer varies, depending on the structure of the specific organization. In a similar vein to the chief operating officer, the title of corporate president as a separate position is also loosely defined; the president is usually the legally recognized highest rank of corporate officer, ranking above the various vice presidents, but on its own generally considered subordinate, in practice, to the CEO. The powers of the president vary widely across organizations and such powers come from specific authorization in the bylaws like Robert's Rules of Order.
Vehicle insurance is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
Self-insurance is a situation in which a person or business does not take out any third-party insurance, but rather a business that is liable for some risk, such as health costs, chooses to bear the risk itself rather than take out insurance through an insurance company.
A professional employer organization (PEO) is an outsourcing firm which provides services to small and medium sized businesses (SMBs). Typically, the PEO offering may include human resource consulting, safety and risk mitigation services, payroll processing, employer payroll tax filing, workers' compensation insurance, health benefits, employers' practice and liability insurance (EPLI), retirement vehicles, regulatory compliance assistance, workforce management technology, and training and development. The PEO enters into a contractual co-employment agreement with its clientele. Through co-employment, the PEO becomes the employer of record for tax purposes through filing payroll taxes under its own tax identification numbers.
The Terrorism Risk Insurance Act (TRIA) is a United States federal law signed into law by President George W. Bush on November 26, 2002. The Act created a federal "backstop" for insurance claims related to acts of terrorism. The Act "provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism." The Act was originally set to expire December 31, 2005, was extended for two years in December 2005, and was extended again on December 26, 2007. The Terrorism Risk Insurance Program Reauthorization Act expired on December 31, 2014.
Catastrophe modeling is the process of using computer-assisted calculations to estimate the losses that could be sustained due to a catastrophic event such as a hurricane or earthquake. Cat modeling is especially applicable to analyzing risks in the insurance industry and is at the confluence of actuarial science, engineering, meteorology, and seismology.
Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy.
Credibility theory is a form of statistical inference used to forecast an uncertain future event developed by Thomas Bayes. It may be used when you have multiple estimates of a future event, and you would like to combine these estimates in such a way to get a more accurate and relevant estimate. This is typically used by actuaries working for insurance companies when determining the premium values. For example, in group health insurance an insurer is interested in calculating the risk premium, , for a particular employer in the coming year. The insurer will likely have an estimate of historic overall claims experience, , as well as a more specific estimate for the employer in question, . Assigning a credibility factor, , to the overall claims experience allows the insurer to get a more accurate estimate of the risk premium in the following manner:
The New York Disability Benefits Law (DBL) is article 9 of the Workers' Compensation Law and creates a state disability insurance program designed to provide employees with some level of income replacement in case of disability caused off-the-job.
Auto insurance risk selection is the process by which vehicle insurers determine whether or not to insure an individual and what insurance premium to charge. Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.
Assigned risk is a term that describes a driver of a motor vehicle, or a class of such drivers, who would be denied insurance coverage by insurance companies, but are required to be covered under U.S. state law. The term assigned risk is also used in Workers' compensation law.
Health insurance in the United States is any program that helps pay for medical expenses, whether through privately purchased insurance, social insurance, or a social welfare program funded by the government. Synonyms for this usage include "health coverage", "health care coverage", and "health benefits". In a more technical sense, the term "health insurance" is used to describe any form of insurance providing protection against the costs of medical services. This usage includes private insurance and social insurance programs such as Medicare, which pools resources and spreads the financial risk associated with major medical expenses across the entire population to protect everyone, as well as social welfare programs like Medicaid and the Children's Health Insurance Program, which both provide assistance to people who cannot afford health coverage.
Insurance in the United States refers to the market for risk in the United States, the world's largest insurance market by premium volume. Of the $4.640 trillion of gross premiums written worldwide in 2013, $1.274 trillion (27%) were written in the United States.
The WorkCover Authority of New South Wales was a New South Wales Government agency established in 1989. The agency created regulations to promote productive, healthy and safe workplaces for workers and employers in New South Wales. The agency formed part of the Safety, Return to Work and Support Division established pursuant to the Safety, Return to Work and Support Board Act, 2012 (NSW).
The Virginia Workers' Compensation Commission (VWC) is an agency of the U.S. state of Virginia that oversees the resolution of workers' compensation claims brought in that state, in accordance with the Virginia Workers' Compensation Act. The Commission has exclusive jurisdiction to adjudicate such claims. Its decisions may be appealed to the Virginia Court of Appeals. The Commission is headed by three Commissioners and an Executive Director. The Commissioners are chosen by the Virginia General Assembly and serve staggered six-year terms. R. Ferrell Newman, Wesley G. Marshall, and Robert A. Rapaport currently serve as Commissioners. The Commissioners elect a Chairman for a term of three years. Mr. Newman is currently the Chairman and Evelyn McGill is the Executive Director. The Commission is headquartered in Richmond, Virginia, but has offices and hearing locations at various places around the state.
The Coalition Against Insurance Fraud is a coalition of insurance organizations, consumers, government agencies and legislative bodies working to enact anti-fraud legislation, educate the public, and provide anti-fraud advice. They are also a resource where consumers can find scam warnings, learn where to report fraud, and how to protect themselves.
Rate making, or insurance pricing, is the determination of rates charged by insurance companies. The benefit of rate making is to ensure insurance companies are setting fair and adequate premiums given the competitive nature.
Workers' compensation in the United States is a primarily state-based system of workers' compensation.