National Council on Compensation Insurance
Encyclopedia
The National Council on Compensation Insurance (NCCI) is a U.S. insurance
rating and data
collection bureau specializing in workers' compensation
. Operating with a not-for-profit philosophy and owned by its member insurers, NCCI annually collects data covering more than four million workers compensation claims and two million policies. The bureau uses this information to provide:
NCCI also produces a number of manuals that govern the details of how Workers Compensation insurance premiums are calculated in many (but not all) states. Among these manuals are the Basic Manual (which sets out rules on the classification code system, payroll amounts used to compute premiums, and changes in classifications and premiums); Experience Rating Manual (which details rules governing how Experience Modification Factors
are computed and used in Workers Compensation insurance premiums); and the Scopes Manual (which details how NCCI intends the various classification codes to be assigned to various kinds of employment).
NCCI also computes the experience modification factors used in most states to adjust employers' Workers Compensation insurance premiums, using loss and payroll data reported by the various member insurance companies that are part of NCCI.
NCCI provides data and analysis to insurance companies, state
workers' compensation insurance funds, regulatory authorities, employers needing information on workers' compensation issues, and non-governmental workers' compensation agencies. The bureau is headquartered in Boca Raton, Florida
with regional offices throughout the United States. The current president
and CEO is Stephen J. Klingel. A board of directors
composed of representatives of affiliated insurers and outside organizations oversees the bureau's activities.
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
rating and data
Data
The term data refers to qualitative or quantitative attributes of a variable or set of variables. Data are typically the results of measurements and can be the basis of graphs, images, or observations of a set of variables. Data are often viewed as the lowest level of abstraction from which...
collection bureau specializing in workers' compensation
Workers' compensation
Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence...
. Operating with a not-for-profit philosophy and owned by its member insurers, NCCI annually collects data covering more than four million workers compensation claims and two million policies. The bureau uses this information to provide:
- Analysis of industry trends in workers' compensation costCostIn production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this...
s - Workers compensation insurance rateRateIn mathematics, a rate is a ratio between two measurements, often with different units. If the unit or quantity in respect of which something is changing is not specified, usually the rate is per unit time. However, a rate of change can be specified per unit time, or per unit of length or mass or...
and loss cost recommendations - Cost analysis of proposed legislationLegislationLegislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
regarding workers' compensation regulations and benefits - Special claims research projects
- Analysis of judicial and regulatory decisions on workers' compensation
- Cooperation with other data-collection agencies to ensure a credible databaseDatabaseA database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...
NCCI also produces a number of manuals that govern the details of how Workers Compensation insurance premiums are calculated in many (but not all) states. Among these manuals are the Basic Manual (which sets out rules on the classification code system, payroll amounts used to compute premiums, and changes in classifications and premiums); Experience Rating Manual (which details rules governing how Experience Modification Factors
Experience modifier
Experience modifier or experience modification is a term used in the American insurance business and more specifically in workers' compensation insurance. It is the adjustment of manual premium based on previous loss experience. Usually three years of loss experience are used to determine the...
are computed and used in Workers Compensation insurance premiums); and the Scopes Manual (which details how NCCI intends the various classification codes to be assigned to various kinds of employment).
NCCI also computes the experience modification factors used in most states to adjust employers' Workers Compensation insurance premiums, using loss and payroll data reported by the various member insurance companies that are part of NCCI.
NCCI provides data and analysis to insurance companies, state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
workers' compensation insurance funds, regulatory authorities, employers needing information on workers' compensation issues, and non-governmental workers' compensation agencies. The bureau is headquartered in Boca Raton, Florida
Boca Raton, Florida
Boca Raton is a city in Palm Beach County, Florida, USA, incorporated in May 1925. In the 2000 census, the city had a total population of 74,764; the 2006 population recorded by the U.S. Census Bureau was 86,396. However, the majority of the people under the postal address of Boca Raton, about...
with regional offices throughout the United States. The current president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
and CEO is Stephen J. Klingel. A board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
composed of representatives of affiliated insurers and outside organizations oversees the bureau's activities.