Jurisdictions in workers’ compensation

State IDs

PolicyCenter supports both interstate and intrastate IDs. An intrastate ID applies to a single state or jurisdiction. You enter the intrastate ID in the details. An interstate ID, such as an NCCI Interstate ID, is shared among a group of states or jurisdictions and is entered once for the policy.

Class codes

The default application controls available classifications by jurisdiction. If you enter data for a location in California, only class codes for California display. PolicyCenter stores workers’ compensation class codes and descriptions in the wc_class_codes.xml system table in Product Designer. This table includes short and long descriptions for each class and class indicators for single classifications with multiple descriptions. You may also indicate an “if any” classification without entering a basis amount.

Modifiers

Modifiers capture information relevant to the pricing of a policy. The rating engine uses modifiers to adjust the policy premium or some portion of the premium. Modifiers are set at the jurisdictional level and typically apply for the duration of the policy term. Some modifiers may be designated for each period if the policy has multiple rating periods.

PolicyCenter supports a wide variety of modifiers, including experience modifiers and workers’ compensation scheduled credits. Various modifier types such as rate, Boolean, date, and typekey are available. Modifiers may be configured to accommodate state requirements such as value ranges, required justification, or multiple rating periods.

Modifiers are defined in the policy line. For more information, see Quote modifiers.

Forms

The workers’ compensation application obtains detailed information which PolicyCenter uses to infer forms and to complete the data used on the forms. An individual form can be identified as applying to all jurisdictions or to specific jurisdictions. You can integrate PolicyCenter with your form engine. PolicyCenter allows you to view forms in the user interface and to integrate with form creation and printing systems. For more information, see Policy forms.

Governing law

Most policies designate basis amounts for workers’ compensation act classes. PolicyCenter also accommodates designating other governing laws for covered employee exposures. The governing laws in the default application are:

• State Act – Default. Coverage under normal workers’ compensation laws in a jurisdiction.
• Voluntary Comp – Extension of jurisdictional law to offer coverage to a class not required by law, such as domestic or farm workers.
• U.S.L.&H. – The United States Longshore & Harbor Workers’ Compensation Act provides coverage for work performed adjacent to navigable waterways. Uses jurisdictional class codes but with different rates and benefits.
• Outer Continental Shelf Act – Coverage for work performed in coastal waters, such as offshore oil rigs. Uses jurisdictional class codes but with different rates and benefits.
• Fed Coal Mine Act – Coverage for coal mine workers. Uses jurisdictional class codes but with different rates and benefits.
• Migrant & Seasonal Agricultural Workers Act – Coverage for migrant farm workers. Uses jurisdictional class codes but with different rates and benefits.
• Defense Base Act – Coverage for U.S. based employees working on military bases both domestically and in foreign countries. Uses jurisdictional class codes but with different rates and benefits.
• Non-appropriated Fund Instrumentality's Act – Coverage for U.S. based employees working in military PXs both domestically and in foreign countries. Uses jurisdictional class codes but with different rates and benefits.
• Limited Maritime – Creates an underwriting flag rather than offering distinct coverage or benefits. It typically indicates that an employee is proximate to an Admiralty/Maritime/Jones Act exposure but is covered under workers’ compensation defined benefits.
• Exposure Related Stop Gap – In a monopolistic jurisdiction, insurance companies can write Stop Gap coverage for employer’s liability insurance.

You can enter the class code and basis amount for each governing law in the covered employees section. A single class code may have multiple descriptions. These descriptions are important in printing policies and audits and for class code search. An example of a class code with multiple descriptions is code 8742 for the jurisdiction of California.

Governing laws affect rates, forms inference, and benefits paid to an injured worker. Although many of these refer to federal acts, all the governing laws refer to workers’ compensation type programs that provide defined benefits. Do not confuse these with federal liability acts such as FELA and Maritime, which are described in Specialty operations in workers’ compensation.

See also

• Class codes with multiple descriptions