New Jersey OKs 8.3% Hike in Workers’ Comp Rates

The New Jersey Department of Banking and Insurance has approved an 8.3 percent increase in manual rates and rating values applicable to New Jersey workers compensation and employers liability insurance effective January 1, 2013 on a new and renewal basis.

The announcement was made by the Compensation Rating and Inspection Bureau in its recent circular letter (a PDF file). The letter details the rating components which resulted in the increase, as well as other revisions approved.

Analysis of data for the latest two complete policy and calendar-accident years, following adjustment to present premium and benefit levels, using paid and incurred losses separately, indicates a premium level adjustment factor of 1.065 (+6.5 percent) due to experience, according to the announcement. A trend factor of 1.026 (+2.6 percent) is included to recognize changing exposures and losses.

The announcement also noted that effective January 1, 2013, the maximum weekly benefit with respect to all types of injuries — except permanent partial disabilities — will be changed from $810 to $826. The minimum weekly benefit will be changed from $216 to $220.

In cases involving permanent partial disabilities, the present maximum weekly benefits ranging from $216 to $810, varying on the basis of duration of disability, will be changed to $220 and $826, respectively. The minimum weekly benefit for permanent partial injuries will remain at $35, the circular letter noted.

The effect of the changes to the minimum and maximum weekly benefits results in a premium level adjustment factor of 1.007 (+0.7 percent) due to benefits.