The Virginia State Corporation Commission (SCC) announced Tuesday the approval of revisions to the premium levels charged for workers’ compensation insurance in Virginia.
The revisions will result in an overall average increase of 3.4 percent for voluntary market loss costs and 2.3 percent for assigned risk rates, according to Virginia’s Bureau of Insurance.
The National Council on Compensation Insurance (NCCI) sought the revisions. The changes approved by the SCC will raise the overall premium level for the industrial, surface and underground coal mine classifications in the voluntary market and the assigned risk plan. The industrial classes include manufacturing, office and clerical, goods and services, contracting and miscellaneous industry groups.
The changes will also decrease the overall premium level for the federal classifications, which fall under the federal Longshore and Harbor Workers Compensation Act, in the voluntary market and assigned risk plan.
The changes will become effective April 1, 2016, for new and renewal workers’ comp policies, as follows:
- In the industrial class, voluntary market loss costs will increase 3.4 percent, and assigned risk rates will increase 2.3 percent.
- In the federal class, voluntary market loss costs will decrease 1.2 percent, and assigned risk rates will decrease 1.7 percent.
- In the surface coal mine class, voluntary market loss costs will increase 13.3 percent, and assigned risk rates will increase 11.3 percent.
- In the underground coal mine class, voluntary market loss costs will increase 12.0 percent, and assigned risk rates will increase 9.9 percent.
NCCI, a Florida-based ratemaking organization, represents insurance companies licensed to write workers’ comp insurance in Virginia.
Workers’ comp 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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