Carson City, NV - March 01, 2018
Barbara D. Richardson 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
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
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
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.
The approved changes and other detailed
information can be found on the Nevada Division of Insurance website by
visiting: http://doi.nv.gov/Insurers/Property-Casualty/Filing-Information/Workers-Compensation/. You may also visit OSHA’s website for
further guidance on improving workplace safety at http://dir.nv.gov/OSHA/Home/.
About the Nevada Division of Insurance
The State of Nevada Division of Insurance, a Division of the Nevada
Department of Business and Industry, protects the rights of Nevada consumers
and regulates Nevada’s $14 billion insurance industry. The Division of
Insurance has offices in Carson City and Las Vegas. In 2017, the Division
investigated more than 3,200 consumer complaints and recovered over $5 million
on behalf of consumers. For more information about the Division of
Insurance, visit DOI.NV.GOV.