ANNOUNCEMENTS DURING 2006

During the year, there were two meetings with the Governing Committee and two meetings with the Actuarial Subcommittee.  Proposals by the Rating Bureau Staff and suggestions made by individuals, associations and others were reviewed and adopted when they appeared to be in the best interest of the New Jersey workers compensation community.

The major considerations, in addition to those heretofore recorded, are outlined below.

 

 

EXPERIENCE RATING

 

Rating Values and Factors

The usual annual adjustments were made to the rating values, factors and credibility criteria to be used in experience ratings effective January 1, 2007.  The changes were included in Manual Amendment Bulletin #434, dated November 15, 2006.  

 

 

RETROSPECTIVE RATING - PREMIUM DISCOUNT

 

Expense Ratio Tables - Expected Loss Ratio

Revised expense ratio tables and a revised expected loss ratio were included in Manual Amendment Bulletin #435, dated November 15, 2006.  The new tables and expected loss ratio, effective January 1, 2007, reflect the annual adjustments in the expense provisions.

Hazard Group Differentials - Retrospective Development Factors

As a result of an examination of the latest available loss data, the Hazard Group Differentials and Retrospective Development Factors were revised effective January 1, 2007.  The changes were included in Manual Amendment Bulletin #435, dated November 15, 2006.

Excess Loss Premium Factors

As a result of an examination of the latest available loss data, the Excess Loss Premium Factors were revised effective January 1, 2007.  The changes were included in Manual Amendment Bulletin #435, dated November 15, 2006.

Tax Multipliers

As a result of adjustments in the tax provisions, the State and USL Tax Multipliers were revised effective January 1, 2007.  The changes were included in Manual Amendment Bulletin #435, dated November 15, 2006.

Table of Expected Loss Ranges 

A new Table of Expected Loss Ranges effective January 1, 2007 was promulgated by Manual Amendment Bulletin #435 dated November 15, 2006.  This change was made to recognize more recent loss experience.

Approval of Retrospective Rating Plans 

All Manual rules referring to the approval of Retrospective Rating Plans by the Rating Bureau were changed to note that all Retrospective Rating Plans must only be filed with the Rating Bureau. The Manual changes were announced in Manual Amendment Bulletin #433, dated May 31, 2006.

Premium Discount

Effective January 1, 2007, adjustments were made to Schedule Y discounts in the premium discount Schedules/Tables as a result of the related expense element alterations. Schedule X discounts were not altered. This announcement was included in Manual Amendment Bulletin #435, dated November 15, 2006.

 

 

APPLICATION OF THE MANUAL

 

Anniversary Rating Date 

The listing of the information page components contained in the Manual rule pertaining to the definition of the anniversary rating date was amended to include the Schedule Rating Premium Adjustment. The Manual rule was also amended to indicate that the Schedule Rating premium adjustment was to be established by the effective date of the policy to which it applies and not subject to change as of anniversary rating dates. The changes involving the Schedule Rating Premium Adjustment are effective July 1, 2006 and announced in Manual Amendment Bulletin #430, dated January 5, 2006.

 

 

PREPARATION AND AUDITING OF POLICIES

 

Executive Officers

The Manual rule defining executive officers was changed to clarify the individuals that should be considered as executive officers for payroll limitation purposes. This change was announced in Manual Amendment Bulletin #434, dated November 15, 2006.

Effective January 1, 2007, the maximum weekly payroll chargeable to executive officers, spouses of an individual proprietor or partner and certain other employments was adjusted to $1,970. The minimum weekly payroll was adjusted to $490.  The change in the maximum weekly payroll recognizes the economic movement in weekly wages.  The new amounts were included in Manual Amendment Bulletin #434, dated November 15, 2006.

Appointed or Elected Public Officers

Effective January 1, 2007, the minimum annual payroll for members of Boards of Education was increased to $5,100 and for appointed or elected officers to $1,020. These routine adjustments were included in Manual Amendment Bulletin #434, dated November 15, 2006. 

 Reporting Required

The Statistical Plan was amended to increase unit-reporting requirements to include 6^th to 10^th reports. The reporting of 6^th reports will apply to policies effective January 1, 2001 and thereafter. Policies effective prior to January 1, 2001 are not subject to the additional reporting requirements. The reporting of 6^th reports for policies effective January 1, 2001 are to be valued as of July 2007 and due to be reported by September 2007. This change was announced in Statistical Circular #108, dated May 31, 2006.

Loss Condition Code 

The Loss Condition Code "Type of Coverage" was renamed "Type of Claim" to provide clarity as to the intent of the data element. An additional type of claim code, "Liability Over" was also added. These changes were effective January 1, 2007 and included in Statistical Circular #108, dated May 31, 2006. 

Injury Description Code

The Statistical Plan was amended to include a new data-reporting element on the unit report, the "Injury Description Code". This new data element will provide specific information regarding each claim. The reporting of the injury description code is required on all unit reports for policies effective January 1, 2007 and thereafter. This change was included in Statistical Circular #108, dated May 31, 2006. 

Claims Requiring Individual Claim Reports

The Statistical Plan was amended to change the requirements for the filing of Individual Claim Reports. The amended reporting requirements are closer to the filing requirements for similar reports in other jurisdictions. This change was effective January 1, 2007 and included in Statistical Circular #108, dated May 31, 2006. 

Social Security Number 

The Statistical Plan was amended to eliminate the Manual rule requiring the social security number of injured workers to be included in Individual Case Reports. This change was made to address privacy concerns and became effective on January 1, 2007. This change was announced in Statistical Circular #108, dated May 31, 2006. 

Injury Description Code Table and Illustrations

The Injury Description Code Table appearing in the Statistical Plan was amended to clarify existing narrative descriptions and to add new coding entries for both "Nature of Injury" and "Cause of Accident". These changes were effective January 1, 2007 and included in Statistical Circular #108, dated May 31, 2006. It was also announced in Statistical Circular #108 that the Illustrations in the Statistical Plan would be updated to reflect recent changes to reporting requirements.

 

CLASSIFICATIONS

 

Effective January 1, 2007, the phraseologies and clarifying footnotes for classifications in the aviation industry were modernized to address changes to Federal Aviation Regulations. Further, all helicopter flight operations that had been previously included with the operations of the fixed wing, general aviation classes were separated and a new classification, Code 7425, was established for helicopter flight operations. The amended classification phraseologies and the phraseology for Code 7425 are listed below. These changes were included in Manual Amendment Bulletin #434, dated November 15, 2006.  

Aviation-Charter or Air Taxi-Flying Crew	7431
Aviation-Air Carrier-Scheduled, Commuter or Supplemental-Flying Crew	7405
Aviation-Ground Operations and Drivers	7428
Aviation-Patrol or Photography-Flying Crew	7426
Aviation-Public Exhibition-Flying Crew	7427
Aviation-Sales or Service Agency-Flying Crew-Student Instruction	7424
Aviation-Testing Aircraft-Flying Crew	7426
Aviation-Flying Crew-Transportation of Personnel in Conduct of Employers Business	7424
Aviation-Flying Crew-Transportation of Personnel in Conduct of Employers Business-Ground Crew and Drivers	7428
Aviation-Flying Crew-Involves Dusting, Spraying or Aerial Firefighting	7427
Aviation-Flying Crew-NOC	7424
Aviation-Airline Operation-Ground Employees and Drivers	7403
Airport or Heliport Operator-All Employees and Drivers	7435
Aviation-Mapping, Surveying Skywriting or Advertising-Flight Crew	7424
Aviation-Helicopters-Flying Crew	7425
Nursing-Home Health, Public and Traveling	8835

 

 Effective July 1, 2006, the classification schedule that serves as a directional footnote for use with Code 8835 was amended to provide guidance for additional job descriptions that are assignable to this classification and to code 9045. This change was included in Manual Amendment Bulletin #433, dated May 31, 2006.

 

 

Railroad Operation-Handling of Terminal Freight by Contractors & Stevedores, Checkers, Drivers

7359F

 

 

 

FORMS

Effective January 1, 2007, the Manual was amended to include a correction to the instructional notes in the New Jersey Limited Other States Insurance Endorsement, WC 29 03 09 A.  The notes were corrected to provide for the proper application of the endorsement identification number.  The corrected endorsement was included in Manual Amendment Bulletin #434, dated November 15, 2006.

Effective January 1, 2007, the Manual was amended to include a revised New Jersey Premium Discount Endorsement -- Schedule Y, WC 29 04 06 T.  The endorsement was revised to accommodate changes in the expense provisions.  It was included in Manual Amendment Bulletin #435, dated November 15, 2006.

Effective July 1, 2006, the Manual was amended to include the Rural Utilities Service Endorsement, WC 00 03 09 B, and eliminate the Rural Electrification Administration Endorsement, WC 00 03 09 A.  This action was necessary to reflect a change to the agency responsible for rural electrification and telephone service. The new endorsement was included in Manual Amendment Bulletin #433, dated May 31, 2006.

Effective January 1, 2006, the Manual was amended to include a new endorsement, the Domestic Terrorism, Earthquakes and Catastrophic Industrial Accidents Premium Endorsement, WC 00 04 21 A.  The endorsement was introduced to notify policyholders of the inclusion of a charge for domestic terrorism, earthquakes and catastrophic industrial accidents in the cost of the policy and to define the coverage provided by the premium charge.  The new endorsement was included in Manual Amendment Bulletin #432, dated January 20, 2006.

Effective January 1, 2006, the Manual was amended to include a new endorsement, the Terrorism Risk Insurance Extension Act Endorsement, WC 00 01 13.  The endorsement was introduced to implement the provisions contained in the Terrorism Risk Insurance Extension Act of 2005.  The new endorsement was included in Manual Amendment Bulletin #432, dated January 20, 2006.

Effective January 1, 2007, the Manual was amended to include a revised Notice of Election Form -- Proprietors and Partners, Workers Compensation and Employers Liability Insurance, Form PP-1B.  This form was revised to indicate that if an insured fails to complete a new Notice of Election Form at the time of renewal of coverage, the coverage of the proprietors and partners in the expiring policy would continue as written. This change was included in Manual Amendment Bulletin #434, dated November 15, 2006.