Texas looks to adopt workers comp rates & classifications from NCCI
The Texas Department of Insurance has proposed using the NCCI's rates and classification codes for workers comp policies as well as allowing the NCCI to take partial control of workers comp functions in Texas. Texas will also maintain certain "Texas exceptions" that include a resolution system for disputes over classifications and rates which cannot be resolved between the policyholders and carriers.
They also updated the percentages and minimum premiums for enhanced employer's liability coverage, which are more based on NCCI actuarial analysis of recent losses. Lastly, they eliminate the seldom-used aggregate deductible and per accident/aggregate deductible options in favor of two additional deductible options that are common in other NCCI states: the per claim deductible and the medical-only deductible options. The petition filed on Dec. 30, if approved, would put the new rates into effect for workers comp policies issued on or after June 1. The department will be holding a meeting Jan. 24 to discuss the petition and its potential impact."If Texas becomes an NCCI state, policyholders operating in other NCCI states and carriers writing workers compensation coverage in multiple NCCI states would have more consistent rules."
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