NCCI Anniversary Ratings Dates
Unique ID: bfe9854b-6376-4bb1-919b-3be5aad7f437
Staffing & Workers' Compensation
There aren’t many ways to make NCCI anniversary ratings fun or exciting (unless you’re an insurance nerd like me), but its information you need to know nonetheless – so let’s jump right in:
The National Council on Compensation Insurance (NCCI) serves a variety of purposes when it comes to workers’ compensation. One of them is issuing the experience rating worksheet which dictates your experience modification factor (please note there are certain states that utilize their own systems to prepare and issue experience mod worksheets, but they follow similar guidelines). There are many components that make up this report, but the one I’ll be focusing on is the anniversary rating date.
On the top left hand corner of your experience rating worksheet, you’ll find the term ‘rating effective date’, also known as ‘anniversary rating date’. It will then be followed by a specific date, which will vary by client. Your rating effective date dictates when your experience modification factor will be applied to your workers’ compensation policy. Please note your rating effective date may not be the same as your workers’ compensation policy effective date, especially if you have multiple policies in force for multiple states.
Your anniversary rating date also dictates the specific rates and policies that are in force for the workers’ compensation policy at that time. For example, if your anniversary rating date is effective January 1, 2016, and you decided to cancel and secure a new policy mid-term effective July 1, 2016, your policy would still be receiving the rates that were tied to your anniversary rating effective date of January 1, 2016. On January 1, 2017, the policy would typically be endorsed to reflect the new rates since January 1, 2017 is still your anniversary date. When the policy expires on July 1, 2017, the anniversary rating date would be amended, and it’ll remain that date moving forward (unless another change was made).
Your experience modification is typically calculated prior to the rating effective date (generally 60-90 days) and will be effective on the date listed on your worksheet.
Why is this important? The anniversary rating date is the effective date of your experience modification factor (which directly impacts your WC premium). Knowing that date can help you and your broker plan claim reviews with adjusters to ensure claims are settled (and/or reserves lowered) prior to the mod being published. This review process begins well in advance of the rating effective date.
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