SCC Sets Workers' Comp Premium Level Adjustments for Va. Workers

December 16, 2004

The State Corporation Commission (SCC) has approved revisions to the premium levels charged for workers' compensation insurance in Virginia.

Workers' compensation insurance provides medical care and wage replacement benefits to injured workers. Almost all Virginia employers are required to provide the coverage to their employees.

The National Council on Compensation Insurance (NCCI) sought the revisions. The changes approved by the SCC will increase overall premium levels in the voluntary and assigned risk markets for the industrial classes. Overall premium levels will decrease for all other classes in both the voluntary and assigned risk markets. The changes will become effective April 1, 2005, for new and renewal workers' comp policies, as follows:

Class
Voluntary Market Loss Costs Assigned Risk Rates
Proposed
SCC Approved
Proposed
SCC Approved

Industrial
+4.9%
+4.9%
+10.2%
+10.2%

"F" (Federal)
-15.6%
-15.6%
-11.7%
-11.7%

Coal Mines (Surface)
-9.5%
-12.2%
-7.3%
-5.5%

Coal Mines (Underground)
-5.4%
-7.4%
-1.1%
-2.4%

NCCI, a Florida-based ratemaking organization, represents insurance companies licensed to write workers' comp insurance in Virginia.