Underwriting
Frequently Asked Questions
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| 1. |
How is my premium calculated?
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What is the experience modification?
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What does the premium audit process entail?
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What criteria are used to determine an independent contractor?
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Whom do I call if I have a claim?
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Are part-time employees that may only work one day a week covered under workers' comp? If so, I don't know how lost wages would be calculated if they are part-time seasonal employees.
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| 1. |
How is my premium calculated?
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Premium is calculated based on a business classification code (or combination of codes) that best describe your operations. The National Council of Compensation Insurance (NCCI) is the national organization that determines class codes. Each class code represents a rate per $100 of payroll that is multiplied by your total estimated annual payroll for that code. Other rating factors may also affect your premium, such as your safety practices and experience modification.
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| 2. |
What is the experience modification?
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The National Council of Compensation Insurance (NCCI) develops your experience modification. It reflects your claims history compared to other businesses in your classification. Premiums are adversely affected if your claims history is worse than average or positively impacted if better than average. The experience period generally consists of three completed policy years.
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What does the premium audit process entail?
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The determination of premium is a function of remuneration, predominantly payroll. At the inception of the policy, the premium is based on estimated payroll information. As a result, policyholder financial records are reviewed at expiration in order to accurately verify the amount of payroll for the policy period. Any changes in payroll may result in an additional premium or a return premium.
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What criteria are used to determine an independent contractor?
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An independent contractor is defined as a person who files a DWC-11-IC “Notice of Designation as Independent Contractor” with the Department of Labor and Training. Although no one factor is determinative, issues such as work schedule control, invoicing, uses of tools/equipment, as well as the existence of a separate liability policy, are taken into consideration.
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Whom do I call if I have a claim?
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For the convenience of our policyholders, we have a toll-free number, 1-888-886-4450, which may be used for claim reporting purposes 24 hours/day, 7 days/week
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| 6. |
Are part-time employees that may only work one day a week covered under workers' comp? If so, I don't know how lost wages would be calculated if they are part-time seasonal employees.
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Part-time employees are covered under workers' compensation. Lost wages are based on the recorded payroll for that individual. Loss wage forms and instructions on how to complete them can be found on this website by accessing the "Resources" section of Quick Links on our home page. From there click on State of Rhode Island Dept. of Labor and Training, Workers' Compensation, Forms, Claim Forms, Wage Statement Part Time.
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