Wednesday, March 12, 2014

Texas Going All NCCI On Us

It has been reported that Texas is in the process of shifting over to using the NCCI system of Workers Comp classifications and manual rules. Historically, Texas has had the Texas Department of Insurance, or TDI, function as a sort of de facto rating bureau, while outsourcing the calculation of experience modifiers to NCCI. But now TDI has announced that they plan on transitioning to adopting the NCCI (National Council on Compensation Insurance, that is) classification definitions and the NCCI manual rules for premium computation and auditing.

TDI says they still intend to carry over some Texas-style rules into this new system, and the NCCI system is designed to accommodate state special classifications and manual rules. So a lot will depend on the details of just how much of the old rules are kept, and how many are discarded. Stay tuned for further developments, as they say.

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