Workmans Compensation Schedule Rating and CCPAP

Schedule Rating.

Another common premium adjustment is the use of schedule rating. Most states (but excluding Florida) allow for schedule rating. Schedule rating allows an insurer to offer credits or debits related to the unique conditions of an employer (e.g. credits for automated work environment, safety officer on staff, debits for poor management commitment to safety, hazardous machinery, untrained workforce, etc.). Insurers must detail the rationale for credits and debits. If conditions change during a policy period, then the associated schedule rating adjustment must change also.

Scheduled Rating: CCPAP. There are several other premium adjustments that can affect the final calculation of workers’ compensation premium. In Florida as well as several other states, one of the most frequently missed premium credits is the credit associated with the Contracting Classes Premium Adjustment Program (CCPAP). This program allows for premium credits for payroll in approximately 90 contracting classification codes if the average hourly wage is above specific thresholds. Once average pay is above $10.00 per hour in the contracting classifications, the employer will be eligible for a credit. Credits can be as high as 25% if average wages are above $17.50 per hour. The contracting credit may be applied for up to three years after the policy expiration.

Why You Should Consider Us: - Because We Literally Wrote the Book on These Issues. Yes, you could say we wrote the book on the Basic Manual, which all the rules for premium calculation including application of scheduled rating.

Why You Should Consider Us:
Because We Literally Wrote the Book on These Issues.

  • On audits;
  • On the Classification System (class code);
  • On the Experience Mod System;
    (or the e-mod; or the experience modification factor);
  • On the formula for High Deductibles;
  • On the definition of “Payroll” for purposes of calculating premium;
  • On all PEO workers comp issues, such as proper corporate combinations for e-mod calculations;
  • On the formula for Retros;
  • On the formula for schedule rating;

Because we did. And all of these items drive the final calculation of your workers' comp premium.

Why You Should Consider Us: We Know This Stuff.

After all, during our years at the National Council on Compensation Insurance (NCCI), that was precisely our job. NCCI set the rules of the road for audits; the Classification System; for the calculation of e-mods and High Deductibles and Retros and schedule rating. And while at NCCI, we wrote the rules of the road for PEOs as to workers' compensation.

Together with our staff:

  • We oversaw all the rules that are applied to Audits;
  • We wrote the descriptions for the 600+ Classifications in the Scopes Manual;
  • We wrote and implemented the U.S. e-mod system; including its formulas;
  • We created and implemented the complex formulas for High Deductibles;
  • We authored and implemented the definition of “Payroll” for the purpose of determining workers comp premium;
  • For PEOs, we wrote the rules for corporate combinations for their e-mods; and most of the other rules that effect PEO premium;
  • We created and implemented the complex formulas for Retros;
  • We created and implemented the complex formulas for Scheduled Ratings;
  • We authored and filed some 500 statewide rate filings used throughout much of the U.S., setting the premium levels on about $15 billion of workers compensation premium – every year;
  • We gained regulatory approval to use all of the above formulas and rules;

Earlier in his career, as Iowa Commissioner of Insurance, Bill Hager judged each of these matters and approved or modified the rules as submitted to the Department of Insurance.

Ready to Work for You Now. This team is prepared now - as in today – to begin working with you.  Please contact Bill Hager at 561-306-5072 or bhager@expertinsurancewitness.com for more information. To determine whether you are paying too much premium because of erroneous experience mod calculations, too much because of erroneous classifications: in short too much premium.


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