The National Council on Compensation Insurance has filed a request with the Maine Bureau of Insurance to increase workers’ compensation loss costs for policy year 2001 by an average of 1.9 percent. NCCI is the advisory rating organization for insurance companies who offer workers’ compensation coverage in Maine. The filing is subject to the approval of the Bureau of Insurance.
Last year’s loss cost increase, the first in over six years, was 10.3 percent, however, a significant portion of that increase was due to updated data that was not adequately presented in the filing for the prior 1999 policy year. Rather than reflecting unfavorable experience or increased claims expenses, most of the proposed increase is due to automatic increases in the maximum benefit duration as well as the maximum amount of weekly benefits paid to injured workers.
These automatic increases are based on workers’ compensation law provisions enacted in 1993.
“This loss cost filing is a reflection of the continued favorable experience, benefit expenses, and continuing safety trend in Maine,” said Insurance Superintendent Alessandro Iuppa. “I am pleased that Maine’s workers’ compensation market continues to reflect the stability of Maine’s workers’ compensation laws.”
NCCI approved loss costs are available to insurers to reference when filing their workers’ compensation rates with the Bureau of Insurance. If NCCI advisory loss costs are approved as filed and are adopted by insurers, it is estimated that the increased premium paid by insured employers would be approximately $3 million.
The requested effective date for the proposed increase is January 1, 2001.
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