Nevada Insurance Commissioner Scott Kipper last week approved a decrease in one of the factors that's used to determine workers compensation rates in the state.
Kipper gave his OK to a recommendation by the National Council of Compensation Insurance for an average 5.5 percent reduction in the portion of workers comp insurance rates that are established by loss experience among companies that are able to purchase workers comp coverage on their own.
Among companies that are placed in an assigned-risk pool because they're unable to get coverage on their own, the council recommended a 6 percent reduction in the portion of rates that reflect loss experience.
The amount of the change, however, varies by industry group. Contractors in the voluntary coverage group will see a 5.5 percent decrease in the loss cost. Manufacturers will see a 9.1 percent decrease, and office and clerical occupations will see a 2.8 percent decline.
The new loss-experience rates take effect March 1.
Along with loss experience, insurance carriers fold their operating costs and profits into the rates that they
establish.
Workers compensation rates are based on $100 of payroll. Nevada is one of two states North Dakota is the other that places a cap on the amount of a worker's earnings that are subject to workers compensation rates. Currently, the cap is set at $36,000 per year.
