Virginia Approves Changes to Workers’ Comp Premium Levels

January 9, 2013

Virginia’s State Corporation Commission (SCC) announced on Jan. 8 that the commission has approved revisions to the premium levels charged for the state’s workers’ compensation insurance.

The National Council on Compensation Insurance (NCCI) sought the revisions. The changes approved by the SCC will increase the overall premium levels for surface coal mine classifications in both the voluntary market and the assigned risk plan and for the industrial and federal classes in the assigned risk plan.

Overall premium levels will decrease for underground coal mines in the voluntary market and the assigned risk plan and for the industrial and federal classifications in the voluntary market.

The changes will become effective April 1, 2013, for new and renewal workers’ compensation policies, as follows :

• In the industrial class, voluntary market loss costs will decrease by 5.7 percent and assigned risk rates will increase by 7.3 percent.

• In the federal class, voluntary market loss costs will decrease by 2.1 percent and assigned risk rates will increase by 14.4 percent.

• In the surface coal mines class, voluntary market loss costs will increase by 4.9 percent and assigned risk rates will increase by 19 percent.

• In the underground coal mines class, voluntary market loss costs will decrease by 14.5 percent and assigned risk rates will decrease by 3.9 percent.

NCCI, a Florida-based ratemaking organization, represents insurance companies licensed to write 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.

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