WC Coverages screen for workers’ compensation

The WC Coverages screen has State Coverages and Policy Coverages tabs where you enter workers’ compensation basis and coverage information.

State Coverages tab

The State Coverages tab displays the jurisdictions covered on the policy. Clicking the jurisdiction in the list view opens the associated State Details pane. This pane contains all the detail required for covered employees. It also includes available modifiers, deductibles and official IDs for the jurisdictions listed.

Rating periods

In PolicyCenter, you can create multiple rating periods for a jurisdiction in two ways. The rating period can be split around an anniversary rating date. The rating period can be split around one or more split dates specified by the user.

The Anniversary Date defaults to the policy effective date. You can set the anniversary rating date to a date within 12 months prior to the policy effective date. If you enter an anniversary that is not the policy effective date, PolicyCenter splits rating into two periods around the anniversary rating date. For example, a policy has an effective date of January 1 of the current year. You set the Anniversary Date to July 1 of the previous year. PolicyCenter creates two rating periods: one from January 1 to July 1 of the current year and another from July 1 of the current year to January 1 of the following year.

The rating period for each jurisdiction can be split around a user-defined date split date. Select the jurisdiction and click the Split Period button. Specify the Split Date and the Type. In the base configuration, the choices for Type are Forced Rerating and Late Modifier.

When you return from the Split Period screen, click the Update All Basis button, or leave this page, PolicyCenter splits the jurisdiction-specific deductible, class values and certain modifiers. PolicyCenter splits the class values and these modifiers into two periods: one before and one after the split date. Policy term basis amounts are prorated by default and are editable.

On renewal, the anniversary rating date is reset to the renewal effective date but remains editable. The user-defined split periods are also removed.

For more information about anniversary rating dates and modifiers, see Quote modifiers.

Workers’ Comp State-Specific Deductible

You can configure jurisdiction-specific deductibles. If a deductible is available and selected, the application displays the appropriate deductible options.

State IDs

This section allows you to enter IDs for states or jurisdictions. You can validate the format and specify whether the ID is required. For configuration information, see Official IDs. You can view the ID formats in the official_id_validation_info.xml system table in Product Designer.

Modifiers

The Modifiers section displays all modifiers for the current jurisdiction that are effective for the duration of the policy period. When a jurisdiction has multiple rating periods, modifiers that are set to Split on Anniversary appear once for each period.

Modifiers may be defined as Boolean, date, rate, or typekey. A Boolean modifier indicates whether the policy is eligible and depends on the rating engine to apply the appropriate factor. The other modifier types have a variable value, and PolicyCenter passes the value to the rating engine.
Minimum/maximum ranges may be applied to numeric modifiers.

The WC Schedule Credits are modifiers specific to workers’ compensation. Click the numbered link next to Schedule Credits on the WC Coverages screen to display the WC Scheduled Credits screen shown below.

The WC Schedule Credit worksheet appears for jurisdictions which permit this credit. There are minimum and maximum values for the credit overall (typically limited by regulation to +/- 0.25), with separate minimum and maximum values per category. PolicyCenter passes the Overall value to the rating engine; the category values and justifications must be preserved for regulatory and internal reviews.

You can view this screen in Studio by navigating to WCScheduleCreditPopup.pcf.

For more information about modifiers, see Quote modifiers.

Covered Employees

Add or remove classes of employees covered at the location. Enter a Basis amount for the policy period. Use a separate entry for each governing law, location, and class code combination.

When multiple rating periods are created around an anniversary rating date or split date, the class codes are split into those periods. Payroll amounts are divided on a pro rata basis based on the rating period dates. Any covered employee basis entered before the rating period split is split pro rata but remains editable.

Field name	Description
Governing Law	You can enter classification and basis amounts for each governing law under the jurisdiction. State Act is the default governing law for each classification. For more information on Governing Law options, see Jurisdictions in workers’ compensation. These options are configured in the `SpecialCov` typelist.
Location	The Location drop-down lists locations that have already been entered in the Locations screen for the current jurisdiction. If you need to add an exposure to a location not in the list, you need to go back to the Location screen to create that location.
Class Code	After selecting a location, the Class Code allows you to enter a code or search for a code. The default application contains definitions for many jurisdiction and NCCI class codes. For more information on searching for class codes, see Class code search screen in workers’ compensation.
Description	This read-only field displays the description of the class code.
# Employees	This field is not required for rating, but is available for such things as POC reporting, catastrophe analysis, and wage level analysis.
If Any	Selecting this field disables the Basis field. Select this field if you have a class that may not have any basis this year.
Basis	This field is required field unless you select If Any. Enter the exposure or payroll amount for this class. If you set a midterm anniversary rating date, clicking on the Update All Basis button in the toolbar generates two rows for payroll entry and two sets of effective dates. These split around the anniversary rating date. The split automatically prorates payroll across the periods. These values may be edited to reflect seasonality or other business requirements.

Class Code Search screen

In workers’ compensation, you can search for class codes on the Class Code Search screen. All search fields are optional. You can enter the following:

Code – Enter the class code number. PolicyCenter searches for a code that starts with the value you enter.
Classification – Enter the classification that you are searching for. PolicyCenter searches for classifications that contain the value you enter. The search is not case-sensitive.

Policy Coverages and Exclusions tab

In the Policy Coverages and Exclusions tab, you can select policy level coverages. Required coverages for the jurisdiction cannot be deselected.

The following table describes some of the fields in the Policy Coverages and Exclusions tab. Other fields may appear depending upon the covered jurisdictions.

Field name	Description
Workers’ Compensation States	Displays the covered jurisdictions. These are the jurisdictions with covered employees.
Statutory Workers’ Comp	Indicates workers’ compensation coverage as required by the covered jurisdictions. No additional coverage terms apply to this coverage.
Other States Insurance > Covered States	The Covered States allows you to select jurisdictions that conditionally require workers’ compensation insurance. For example, the applicant may have no permanent operations or locations in these jurisdictions, but employees may be there on temporary assignment. The choices are: All other non-monopolistic states – Indicates all non-covered jurisdictions that are non-monopolistic. All states except – Enter a comma separated list of USPS jurisdiction codes. Invalid entry data is the jurisdictional code for any monopolistic jurisdiction or any covered jurisdiction. Listed states only – Enter a comma separated list of USPS jurisdiction codes. Invalid entry data is the jurisdiction code for any monopolistic state and/or any covered jurisdiction. None – No temporary employee exposure anticipated outside of jurisdictions with permanent facilities. Employees of other jurisdictions are not covered unless specifically added to the policy by endorsement.
Workers’ Comp Employer’s Liability > Employer’s Liability Limit	Identify the limit coverage term for employer’s liability coverage. The drop-down list displays package or multi-part limits as configured in Studio. The multi-part limits are: Per accident Disease per employee Disease per policy
Workers’ Comp Employer’s Liability > Stop Gap	Specify the monopolistic jurisdictions covered by employer's liability stop gap coverage. The options are: All monopolistic states Listed states only None
Exclude Medical Option (Hospital Only)	This option is available only for hospitals and provides workers’ compensation without medical benefits. This is different from medical deductibles or medical reimbursement plans.

You can view this tab in Studio by navigating to WorkersCompCoverageCV.pcf.

In Product Designer, you can configure policy coverages in the Coverages page in the Workers’ Comp Line policy line. You can configure or add coverages such as Workers’ Comp Employer’s Liability and set available terms and their options such as liability limit choices. For more information, see Coverages and schedules.