93-11: Loss Cost Data

* This bulletin was repealed by 08-05

To:           All Insurers Writing Workers Compensation in Missouri

From:      Jay Angoff, Director

Re:          Loss Cost Data

Date:       October 15, 1993

Today, pursuant to Section 34 of Senate Bill 251 (Laws 1993), I have issued an order to the National Council on Compensation Insurance (NCCI) requiring it not to distribute pure premium rate data adjusted for loss development and loss trending, without also distributing such data as adjusted with a trend factor developed by the Missouri Department of Insurance (MDI). A copy of that order is attached.

However, the NCCI has compiled and may at any time distribute historical rate-making data. "Historical rate-making data" means information respecting workers compensation insurance exposures, premiums, and claims paid or reserves held for claims reported, including actual loss adjustment expenses paid or reserved for such claims paid or reported but excluding all other expenses or profit, without judgmental adjustments such as loss development and projections through loss trending to a future point in time. Any insurer adjusting its rates on or after January 1, 1994 may use NCCI historical rate-making cost data in establishing such adjusted rates. Pursuant to section 24 of Senate Bill 251, effective January 1, 1994 insurers need not file rate increases or decreases with the Department prior to implementing them, but are required to file with the Department such increases or decreases, along with supporting information, no later than 30 days after implementing them.