The Tennessee Department of Commerce and Insurance (TDCI) has chosen the National Council on Compensation Insurance (NCCI) as the new plan administrator for the Tennessee Workers Compensation Insurance Plan (TWCIP).
Beginning with policies effective July 1, 2015, NCCI will administer the plan, which will be renamed the Workers Compensation Insurance Plan (WCIP). NCCI will establish the infrastructure necessary to provide workers compensation residual market services, such as application processing and administration of the plan rules, and access to coverage in certain other states, among other services. Tennessee will join 22 other states in utilizing this national workers compensation residual market system.
According to TDCI Commissioner Julie Mix McPeak, “TDCI is confident that employers and carriers servicing the plan will experience immediate benefits.”
Coverage through the WCIP will be available through NCCI for policies effective on or after July 1, 2015. All necessary information will be available on NCCI’s website. TDCI, along with the TWCIP.com, will also post links to the NCCI website in order to assist in a smooth transition to the new plan administrator.
NCCI will hold instructional meetings across the state in mid-May to thoroughly inform involved parties of the changes and coordinate with interested stakeholders for a seamless transition.
In general, most Tennessee employers are under a statutory obligation to obtain workers compensation insurance and provide their employees with medical benefits and compensation for lost wages due to work-related injuries.
NCCI will administer the WCIP for employers who, despite a good-faith effort, are unable to procure workers compensation insurance in the voluntary market. The WCIP, now administered by NCCI, will continue to ensure all Tennessee employers have the necessary access to workers compensation insurance in order to meet legal obligations and adequately protect their employees.
All necessary information will be accessible on NCCI’s website in June. NCCI is a nationwide source of workers compensation insurance information. NCCI gathers data, analyzes industry trends, and prepares objective insurance rate and loss cost recommendations.