The Indiana Compensation Rating Bureau (ICRB) is a statutory rating organization. It is a private non-profit, unincorporated association of all insurance companies licensed to write workers compensation insurance in Indiana.

The law empowers the ICRB to gather information from its member companies that may be necessary to establish fair and adequate advisory rates. In addition to the data collection and ratemaking functions, the ICRB is responsible for various workers compensation programs: rules promulgation, experience rating, inspection and classification, assigned risk administration, industry education, and dispute resolution.

Hot Topics
News and other interesting stuff.

1.  Change to Experience Rating Primary/Excess Split Point (5/7/2012)
For the past 20 years, the portion of losses under the Experience Rating Plan considered “primary” has been set at $5,000. All of the first $5,000 of a loss enters into the calculation.  The amount above $5,000, “excess” loss, is discounted by a weighting factor.  During this time, the average cost of a claim has tripled. Beginning on all 2013 ratings, the amount considered primary will increase to $10,000.  In 2014 the split point changes to $13,500, and in 2015 it will become $15,000.  In general, both credits and debits will become larger.  Seventy-four percent will be within a range of -.05 to +.02.

Additional information is included in our related Comp Clues document titled “Experience Rating: Split Point”.

2. Schroeder Earns WCP Designation
Duane Schroeder, CPCU, WCP, ICRB Vice President, recently earned the designation of “Workers Compensation Professional” by the American Society of Workers Comp Professionals, Inc (AMCOMP).
 
The WCP designation signifies that an individual has completed a rigorous workers' compensation curriculum and successfully passed course examinations demonstrating a broad-based knowledge and understanding of workers' compensation.
 
As a WCP, Duane now joins other workers' comp professionals throughout the United States who have risen to the top of this important profession. He may now proudly display the distinguished letters "WCP" next to his name in all professional correspondence. (Click to see photo)

3. Indiana WC Outlook and Observations (03/09/12)
NCCI has put together a presentation (PDF file) which captures a lot of the information typically seen in its State Advisory Forums. This information compliments and expands upon the ICRB annual report.

4. Short and Long Term Policies (02/20/12)
Effective March 1, 2012, we created several Indiana state rule exceptions to the Basic Manual and the Policy Period Endorsement so that the rules are consistent with Indiana statute which does not permit short term policies. IC § 22-3-5-5(c)(6)) states that policy periods should be one or three years, or continuous. We view the rule change merely as a technical clarification matter. For more information, please refer to Item Filing 01-IN-2012.

5. Payroll Rule Change (01/11/12)
The advisory fixed payroll amount for sole proprietors, partners, and LLC members is eliminated effective 01/01/2012 for new and renewal policies. These business owners who elect to be covered will be treated the same as an executive officer for premium determination purposes and are subject to the same advisory maximum and minimum payroll limitations listed on the Miscellaneous Values Pages. For more information, please refer to Circular 2011-07. Also, the PIA and Big I magazines both featured articles (click here) on this topic in December 2011.

6. Assigned Risk LSRP Filing (12/28/11)
Effective January 1, 2012, the Loss Sensitive Rating Plan (LSRP) threshold in Indiana increases from $100,000 to $250,000. The filing eliminates the Indiana special threshold of $100,000 that had been in effect since December 1, 2002.