Carson City, NV – Commissioner Barbara D. Richardson recently approved two filings from the National Council on Compensation Insurance (“NCCI”). Compared to previous years, these filings are different as one of them will take effect March 1, 2018 while the other will take effect on March 15, 2018.
Annual Loss-Cost and Assigned-Risk Rate Filing
An average decrease of 2.3 percent for Nevada workers’ compensation voluntary insurance loss costs and an average increase of 0.2 percent for Nevada workers’ compensation assigned-risk rates will take effect on March 1, 2018. This filing is based on recent improvements in workers’ compensation claim experience in the Nevada market, as well as the slightly increased costs for assigned-risk servicing carriers which were selected to administer assigned-risk policies effective January 1, 2018.
Second Loss-Cost and Assigned-Risk Rate Filing in Response to Actuarial Annuity Table Updates
On March 15, 2018, a second NCCI filling will take effect, which responds to recent changes in Nevada law. Assembly Bill 458 of the 2017 Legislative Session required the Nevada Division of Industrial Relations (DIR) to annually update the Actuarial Annuity Table of present values used to calculate the lump-sum payments of permanent partial disability (PPD) awards. In response to this statutory mandate, the DIR promulgated Regulation R043-17, which updated the Actuarial Annuity Table effective December 4, 2017. By using a lower interest rate than previously prescribed, this update increases the benefit amounts of those claimants electing lump-sum PPD payments. The second NCCI loss-cost and rate filing was made to account for the impact of this change on Nevada workers’ compensation system costs, which is an overall average increase of 4.7 percent to both voluntary loss costs and assigned-risk rates.
Combined Impact of Filings
For policies issued or renewing on or after March 15, 2018, the combined average effect of the two recently approved filings will be an overall average increase of 2.3 percent to the level of voluntary loss costs and an overall average increase of 4.9 percent to the assigned-risk rate level. Changes for individual employers may vary from this combined impact depending on the NCCI Classification Code to which an employer’s operations are assigned.
Nevada’s Low Workers’ Compensation Costs
Despite the modest overall increases approved to take effect in March 2018, the levels of voluntary loss costs and assigned-risk rates remain near historic lows in Nevada. Previously, effective March 1, 2017, Commissioner Richardson approved the largest workers’ compensation loss-cost decrease (10.7 percent) since 2004 and the largest assigned-risk rate decrease in Nevada history (10.5 percent).
The Division encourages employers to comparison shop for the best rate. Nevada’s market remains competitive, so it pays to review all options. Nevada’s reasonable workers’ compensation rates are among many reasons why businesses should consider establishing themselves in Nevada.
Source: NV Division of Insurance