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State: Ntl. Moore: Class Code 5606: Who's the Boss?: [2024-06-11] |
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Over the last decade, workers' comp class code 5606 has generated so many questions from insureds. Most of the questions arrive after an employer has received its premium audit statement or final premium bill for a certain policy year. The premium auditor had moved some of the workers' comp class code 5606 to a class code with a much higher rate. When a subject appears on the workers' comp radar so many times, one has to cover it in an article. Let us look at this controversial classification code by looking at how the two largest rating bureaus (NCCI and WCIRB) define this construction industry code. The most important part of the descriptions is included in each section. Please use the links to see the full descriptions. Both descriptions contained copyrighted information. WCIRB version
NCCI version Please remember that NCCI class code 5606 can be altered by each state.
Bottom line The two main rating bureaus’ descriptions seem similar even though the two descriptions read somewhat differently. The best advice that I can give starts with reviewing your policy’s declarations page to see if class code 5606 covers any part of your policy’s estimated payroll. If so, keep the two above descriptions in mind. Deciding to do something after your premium audit bill arrives, other than disputing it, may not be the business strategy for your company. This blog post is provided by James Moore, AIC, MBA, ChFC, ARM, and is republished with permission from J&L Risk Management Consultants. Visit the full website at www.cutcompcosts.com. |