Disease Loading

Discussion on the Basic Manual Disease Loading rule with special attention to Indiana limestone.

The Basic Manual Rule 3.A.7 addresses Disease Loading as follows:

  1. Disease Loading
    1. Supplemental Disease Exposure
      1. Advisory loss costs and manual rates include premium for the disease exposures covered by the Standard Policy.
      2. Supplemental disease loading may be added to a manual rate applicable to an individual risk. The supplemental disease loading proposed must be based on the carrier’s judgment after an evaluation of the operations.

        Atomic Energy Radiation Exposure NOC may be subject to a supplemental disease loading and is applicable for operations that involve exposure to radioactive materials that are not performed for, or under the direction of, the Nuclear Regulatory Commission or any governmental agency. Statistical Code 9985—Atomic Energy—Radiation Exposure NOC is used for reporting the radiation exposure.
      3. Specific Disease Loading
        • The advisory loss costs or manual rates for classification code numbers followed by the symbol “D” on the state pages include specific disease loadings. These loadings reflect specific disease hazards involved in the operations assigned to those classifications.
        • A supplemental disease loading that is added to an advisory loss cost or manual rate that includes a specific disease load must be for exposure not contemplated within the specific disease loading.
        • The carrier may remove the specific disease loading from a manual rate when the substance for which the disease loading was established is not present or is determined by the carrier to be insignificant in the operations of the insured.

          Exception to 7-a(3) above:

          For silicosis, the specific disease loading may be removed when not more than 5% free silica is present.
      4. Partial application of a specific disease loading is permissible based on the carrier’s judgment after an evaluation of the operations.

The rule allows an exception (removing the loading) for silicosis, which applies to Indiana limestone.

Indiana Limestone Silica Content​

The chemical analysis on file since 1982 at the ICRB (provided by the Indiana Limestone Institute of America) for Indiana limestone shows only a 0.69% silica content for buff limestone and a 0.80% silica content for gray limestone. Both percentages are well below the rule threshold of 5% content, so it is appropriate to remove the disease loading for Indiana limestone quarries.

The disease loading amount is located in the state rate pages footnotes.