Conn. Approves Slightly Lower Workers' Comp Loss Costs

December 15, 2006

Connecticut Insurance Commissioner Susan Cogswell has approved cost level changes requested by workers' compensation carriers.

The result will be small decreases in National Council on Compensation Insurance loss costs for the voluntary market and a slight drop in rates charged assigned risks. Insurers use the NCCI loss costs to develop their own rates.

Cogswell approved the NCCI recommendation of an average decrease of -0.9 percent for pure premium loss costs and an average decrease of -0.1 percent in assigned risk rates. The changes go into effect Jan. 1, 2007.

The overall change distributed by major industry group as follows:

Industry Group
Pure Premium Loss Cost Assigned Risk Plan Rate
Manufacturing +1.2 +2.0

Contracting -1.5 -0.7

Office & Clerical +1.6 +2.4

Goods & Services -2.4 -1.6

Miscellaneous -1.4 -0.6

Overall -0.9% -0.1%

Cogswell also approved several others changes:

An increase in the maximum payroll for executive officers or members of Limited Liability Companies from $500 per week to $750 per week.

An increase in the maximum payroll for athletic teams and carnival-traveling from $500 per week to $600 per week.

An increase in the maximum minimum premium to $1,000.

Also, Cogswell allowed a Workers Compensation Commission industrial classification assessment fund rate of 1.8 percent and "F" industrial classification assessment fund rate of 6.5 percent for voluntary market and assigned risk market insurers.

Source: Conn. Insurance Department