Split point to change in 2013
The primary/excess split point value used in an employer's experience rating is changing in most states next year to better reflect increased claims costs.
NCCI has proposed, and most states have approved, increasing the current $5,000 that divides primary and excess losses. Several states with independent bureaus are also considering or approving the plan.
The three-year plan will include the following increases:
- Year one -- $10,000, to be effective with each state's approved rate/loss cost filing on or after Jan. 1, 2013.
- Year two -- $13,500.
- Year three -- $15,000 plus two years of inflation adjustment, rounded to the nearest $500.
April 16, 2012
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