The National Council of Compensation Insurance (“NCCI”) has been very proactive in understanding, but more importantly affirming, the PEO model. As a result, constructing rules and advisories in regard to how the business model should be understood, regulated and evaluated.
They are kind enough to host a home page dedicated to the proper way that co-employed business should be written on a state by state basis – https://www.ncci.com/NCCIMain/IndustryInformation/PEO/Pages/default.aspx
Reporting on the progress done at his direction on the “Coemployment/PEO Endorsement is Committee Chairman Jeffery Rendel. I know of noone that has done more “pro-bono” hours in support of the PEO cause —
Thanks Jeff for this summary —
“The National Council on Compensation Insurance (“NCCI”) has organized a master committee to evaluate various aspects of co-employment and temporary staffing. This committee consists of carriers, insurance agents, PEO representatives, actuaries and data professionals.
This author has developed an interest in consolidating and modernizing the litany of endorsements utilized to add or remove a PEO client from a master policy. As many already know, this process can be convoluted and fraught with error. Accordingly. NCCI has created a PEO Endorsement Sub-committee to evaluate and make recommendations regarding these forms and processes. Shani Oulton (“NCCI”) has created the following as action items for the Sub-committee:
The PEO Endorsement Subcommittee will meet its objective by:
• Reviewing the current purpose and language of the Alternate Employer Endorsement
• Reviewing the current purpose and language of other related PEO/employee leasing endorsements
• Understanding carriers needs as it relates to these endorsements for more efficient policy coverage
• Evaluating state statutes and regulations for compliance with any recommended changes of the Subcommittee
• Assessing all recommendations
While progress will be slow, it is the committee’s desire to drive consistency, state-by-state and carrier-by-carrier, in how we establish coverage. ”
***In fact progress has been swift under Jeff’s direction as is evidenced by the attached endorsement now being debated by the supporters of the industry. When agreement is found at the committee level, we are hopeful that NCCI will support a new PEO-specific endorsement (draft attached) worthy of introducing on a country-wide basis for adoption.
This is a very big deal. Really cool for the model.
For many years now, the NCCI and PEO community have sat down to constructively discuss the unique nuances of the PEO industry. We are very close to memorializing the fruits of this labor on both sides.
The Compass will continue to report progress and is excited about the industry’s direction and traction to prove out that PEO’s are the best way to deploy workers’ compensation… !
‘All truths are easy to understand once they are discovered; the point is to discover them.”