NCCI CORRECTION LOWERS COMP RATES:

Hundreds of Vermont employers may see reductions in their 2003 and 2004 workers’ compensation premiums as a result of adjustments to the data used in the 2003 and 2004 rate filings prepared by the National Council on Compensation Insurance, announced Commissioner John Crowley of the Vermont Department of Insurance.

NCCI discovered that payroll information used in calculating rates had been underreported for a limited number of employer class codes. Upon being notified, the department ordered NCCI to review its rate filings, which resulted in reduced workers’ compensation rates for 18 employer classification codes, including logging or lumbering; sawmill; concrete construction; carpentry; painting or paperhanging; trucking, local hauling only; grocery stores; machinery dealers; hotel employees, salespersons and drivers; fast food restaurants and garbage collectors. Crowley has ordered all insurers to recalculate 2003 and 2004 premiums for affected policyholders and to make appropriate refunds or premium adjustments.

The error does not affect NCCI’s 2005 rate filing. The department recently approved workers’ compensation insurance rate increases of 6.5 percent in loss costs for the voluntary market and 8.9 percent in the rates for the assigned risk market effective April 1, 2005.