Hundreds of Vermont policyholders may see reductions in their 2003 and 2004 workers’ compensation insurance premiums as a result of adjustments to the data used in the 2003 and 2004 rate filings prepared by the National Council on Compensation Insurance, announced Commissioner John Crowley of the Vermont Department of Banking, Insurance, Securities & Health Care Administration.
The changes in the 2003 and 2004 rate filings were necessitated by NCCI’s discovery that payroll information used in calculating rates had been underreported for a limited number of employer class codes, Crowley said.
Upon being notified of the issue in late 2004, the department immediately ordered NCCI to conduct a comprehensive review of its 2003 and 2004 rate filings, which resulted in reduced workers’ compensation rates for 18 employer classification codes.
Crowley has ordered all insurers that write workers’ compensation insurance in Vermont to recalculate 2003 and 2004 premiums for affected policyholders and to make appropriate refunds or premium adjustments.
The error in the 2003 and 2004 rates does not affect NCCI’s 2005 rate filing. The department recently approved workers’ compensation insurance rate increases of 6.5 percent in loss costs for the voluntary market and 8.9 percent in the rates for the assigned risk market effective April 1, 2005
NCCI is an insurance statistical organization based in Boca Raton, Florida that prepares workers’ compensation rate filings for more than 900 insurance companies in 37 states, including Vermont.
Employer classifications affected for 2003 and 2004 are as follows:
(2702) Logging or lumbering (years 2003 and 2004)
(2710) Sawmill (year 2004)
(2731) Planing or molding mill (years 2003 and 2004)
(2841) Woodenware manufacturing (years 2003 and 2004)
(5102) Door, door frame or sash erection – metal or metal covered (years 2003 and 2004)
(5213) Concrete construction (years 2003 and 2004)
(5403) Carpentry (years 2003 and 2004)
(5474) Painting or paperhanging NOC and shop operations and drivers (years 2003 and 2004)
(5645) Carpentry – detached one or two family residence (year 2004)
(6217) Excavation & drivers (year 2003)
(6233) Oil or gas pipeline construction and drivers (years 2003 and 2004)
(7228) Trucking: local hauling only – all employees and drivers (years 2003 and 2004)
(8033) Store: meat, grocery & provision stores combined – retail NOC (year 2004)
(8107) Machinery dealer NOC – store or yard and rivers (year 2004)
(8116) Farm machinery dealer – all operations & drivers (years 2003 and 2004)
(9052) Hotel: All other employees, salespersons and drivers (years 2003 and 2004)
(9083) Restaurant: fast food (year 2004)
(9403) Garbage, ashes or refuse collection & drivers (year 2004)
Vermont employers who have any questions about the rate corrections may contact Frederick M. Barrett in the Vermont Insurance Division at 802-828-4841.
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