07.01.15 Changes to Texas Workers Compensation Rating

Effective July 1, 2015, Texas will be adopting the NCCI Experience Rating Plan with some state specific exceptions. Key Changes to Texas Workers Compensation Rating affecting the experience plan rating include:workers compensation insurance • Only 30% of medical only incurred loss amounts will be used in the experience rating calculation rather than the current standard of 100%. • The expected loss rates, discount ratio, weight and ballast values used in the experience rating calculations will be revised annually along with NCCI loss cost filing • The split point between primary and excess losses will be revised from $5,000 to $15000.

The Texas Department of Insurance staff petition notes the following expected impacts on e-mods as a result of these changes

• Slightly more credit mods • Majority of e-mods will remain between 0.80 and 1.00 • Roughly 88% of e-mods are expected to increase or decrease less than 5% • Of the remaining accounts, approximately half are expected to move from credit to debit (about 2,700 risks)

Swingle Collins & Associates is ready to help you evaluate the effect that these changes will have on your workers compensation policy. Please contact your agent for assistance with projecting the effect on your individual account as some may be significantly impacted by the change.

Swingle, Collins & Associates specializes in commercial insurance coverage. The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs please contact your dedicated risk manager to discuss the benefits and services of workers compensation insurance coverage.

The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.