COMPENSATION RATING AND INSPECTION BUREAU STATE OF NEW JERSEY DEPARTMENT OF BANKING AND INSURANCE 60 PARK PLACE, NEWARK, NJ 07102 JOSEPH S. DI MARTINO (973) 622-6014 LOUIS A. (TONY) GEORGES Executive Director Associate Executive Director May 9, 2000 MANUAL AMENDMENT BULLETIN #408 To All Bureau Members: Re: Manual Rules Changes The Commissioner of Banking and Insurance has approved certain changes to the Workers Compensation and Employers Liability Insurance Manual. The changes are applicable to new and renewal policies effective July 1, 2000 and thereafter. The present standard limits of liability for Admiralty or Federal Employers Liability Act exposures are $25,000/each accident and $25,000/each employee with a $25,000 policy aggregate for disease. The present limits have been in effect since July 1, 1976. Such limits are changed to $100,000. The new limits are consistent with those applicable to exposures other than those under Admiralty and the Federal Employers Liability Act. To accommodate the change, it is necessary to amend the present endorsement WC 29 05 09 B in Part 3, Section 2 of the Manual (3:2) as shown in Exhibit A; 3:6-12 and 14 as shown in Exhibit B; and 3:11-32 and 41 shown in Exhibit C. With respect to the Endorsement, your attention is directed to 3:2-1 of the Manual wherein it is required that a specimen copy must be filed with the Rating Bureau and written approval secured before being placed in use. Classification codes 5551 Roofing All Kinds and yard employees, Drivers and 5500 Street or Road Oiling or Maintenance & Yard Employees ; Street or Road Paving, Surfacing or Resurfacing & Yard Employees presently do not permit separate classification treatment for employees engaged in storage or maintenance work at a permanent yard. Consistent with the practice followed with other construction work, it will be permissible to separately classify such exposures under code 8227 Construction or Erection Permanent Yard. There are changes to the footnotes attached to classification codes 7405 Air Carrier Scheduled or Supplemental - all members of Flying Crew and 7431 Air Carrier Commuter all members of Flying Crew. The changes are intended to conform to recent amendments to Federal Aviation Regulations. The changes do not affect the scope or application of the classifications. To accommodate the above classification changes it is necessary to amend 4:1 as shown in Exhibit D. JDM:njl Att. Joseph Di Martino Executive Director
C.R.I.B. -2- Effective July 1, 2000 EXHIBIT A WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 29 05 09 C NEW JERSEY RETROSPECTIVE PREMIUM ENDORSEMENT PART TWO - EMPLOYERS LIABILITY INSURANCE EXCESS EXCLUSION This endorsement changes the Retrospective Premium Endorsement attached to the policy. 1. Standard Premium. The premium developed for Part Two limits of liability in excess of the standard limits shown in the Schedule below for employment in New Jersey and, if applicable, for coverage under Admiralty or the Federal Employers' Liability Act will be excluded in determining the standard premium. 2. Incurred Losses. Subject to any lower loss limitation in the Retrospective Premium Endorsement attached to the policy, the portion of each Part Two liability loss in excess of the standard limits shown in the Schedule below for employment in New Jersey and, if applicable, for coverage under Admiralty Law or the Federal Employers' Liability Act will be excluded in determining the incurred losses. Schedule Part Two Standard Limits - Employment In New Jersey by Accident.....$100,000 each accident by Disease......$100,000 each employee by Disease......$500,000 policy limit Part Two Standard Limits - Employment Under Admiralty or Federal Employers' Liability Act by Accident..... $100,000 each accident by Disease...... $100,000 each employee by Disease...... $100,000 policy limit This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective Policy No. Endorsement No. Insured Premium $ Insurance Company Countersigned By Notes: 1. This endorsement is to be attached to a policy which is subject to retrospective rating when it is agreed between the insured and the carrier that the premium for increased Part Two limits and Part Two losses in excess of standard limits are to be excluded from the retrospective rating. 2. The information in the Schedule is for the convenience of the insured and the carrier but does not determine the Part Two - Employers Liability Insurance limits in the policy. 3. This endorsement is to be supplemented with the New Jersey Premium Discount Endorsement.
C.R.I.B. -3- Effective July 1, 2000 EXHIBIT B Amend 3:6-12 Maritime or Federal Employment as follows: 12. Standard Limits of Liability. The rates in the table above provide for a standard limit of $25,000 for all damages because of bodily injury by accident, including death at any time resulting therefrom, sustained by one or more employees in any one accident. The rates also provide for a standard limit of $25,000 for all damages because of bodily injury by disease, including death at any time resulting therefrom, sustained by employees in operations in New Jersey or in operations necessary or incidental thereto. No policy shall be written with limits less than the standard limits. 12. Standard Limits of Liability. The rates in the table above provide for a standard limit of $100,000 for all damages because of bodily injury by accident, including death at any time resulting therefrom, sustained by one or more employees in any one accident. The rates also provide for a standard limit of $100,000 for all damages because of bodily injury by disease, including death at any time resulting therefrom, sustained by employees in operations in New Jersey or in operations necessary or incidental thereto. No policy shall be written with limits less than the standard limits. Amend 3:6-14 as follows: 14. Admiralty and Federal Liability Limit Table. Limits apply by bodily injury by accident/accident and bodily injury by disease/aggregate. 14. Admiralty and Federal Liability Limit Table. Limits apply by bodily injury by accident/accident and bodily injury by disease/aggregate. CHARGE MINIMUM CHARGE Limits Coverage I Coverage II Coverage I Coverage II $ 25,000 Std. Std. $100 $200 50,000 25% 23% 109 218 100,000 62 56 115 230 200,000 111 100 123 246 300,000 145 131 129 258 400,000 172 155 134 268 500,000 192 173 138 276 CHARGE MINIMUM CHARGE Limits Coverage I Coverage II Coverage I Coverage II $100,000 Std. Std. $115 $230 150,000 17% 15% 119 238 200,000 30 28 123 246 300,000 51 48 129 258 400,000 68 63 134 268 500,000 80 75 138 276
C.R.I.B. -4- Effective July 1, 2000 EXHIBIT C Amend 3:11-32 Experience Rating Plan as follows: 32. Employers Liability Cases. All Employers Liability cases (those settled under Part Two of the policy contract) shall be individually tabulated on an actual cost basis and so identified. The actual incurred settlement cost shall be employed in the experience rating calculations uniformly modified by the factor of 1.12 set forth in Table A, 2:5-1 of the Manual. In no event shall any claim be included in a rating at an amount greater than the applicable basic limit provided under Part Two of the Standard Provisions Policy. Claims shall be divided to Normal and Excess in accordance with the values in Table A, 2:5-1 of the Manual. The limiting loss values indicated in Table A, 2:5-1 apply to all claims except Admiralty or Federal Employers Liability Act. For Admiralty or Federal Employers Liability Act claims, a maximum per claim limiting value of $25,000 applies. The medical portion of each claim shall not exceed 25%, or $6,250. Amend 3:11-41 as follows: 41. Subject Premium. The premium subject to experience rating, hereinafter referred to as the subject premium, shall be computed by segregating the payrolls of the experience period by classification and according to the coverage provided and extending them at the appropriate manual rates. If the operations of a risk are reclassified other than as a result of a change in operations the payrolls reported under the previous classification(s) and used in the experience rating shall be reassigned to the new classification and the premium subject to experience rating computed on the basis of the new classification(s). Exception: Subject premiums for Admiralty or Federal Employers Liability Act exposures shall be determined by segregating the payrolls by Coverage I and II classification and extending them at the appropriate, basic manual rates for $25,000/25,000 limits. For Admiralty or Federal Employers Liability Act claims, a maximum per claim limiting value of $100,000 applies. The medical portion of each claim shall not exceed 25%, or $25,000. Exception: Subject premiums for Admiralty or Federal Employers Liability Act exposures shall be determined by segregating the payrolls by Coverage I and II classification and extending them at the appropriate, basic manual rates for $100,000/100,000 limits.
C.R.I.B. -5- Effective July 1, 2000 EXHIBIT D PRESENT ROOFING - ALL KINDS - & yard employees, Drivers... 5551 STREET or Road OILING OR MAINTENANCE & YARD EMPLOYEES, Drivers-NPD WITH 6042 STREET or Road PAVING, Surfacing or Resurfacing - & YARD EMPLOYEES, Drivers-NPD WITH 6042 Not applicable to jobs on which the contractor also constructs the base or foundation of the roadway, widens or relocates the roadbed, or lays concrete roads or concrete pavements. Jobs which involve the foregoing operations as well as paving shall be classified as 6042 street or road construction AIR CARRIER-SCHEDULED OR SUPPLEMENTAL-All members of FLYING CREW... 7405 Applies to scheduled or commercial air carriers including cargo carriers certified as such and operated under Part 121 of the Federal Aviation Regulations. AIR CARRIER-COMMUTER-all members of FLYING CREW... 7431 Applies to commuter air carriers operating under Part 135 or Part 127 of the Federal Aviation Regulations and which conduct at least five round trips per week between two or more points and publish flight schedules that specify the time and days of the week and places between which such flights are performed. REVISED ROOFING-ALL KINDS & Drivers...5551 STREET or Road OILING OR MAINTENANCE, Drivers-NPD WITH 6042 STREET or Road PAVING, Surfacing or Resurfacing, Drivers - NPD WITH 6042 Street or road Construction... 5500 Not applicable to jobs on which the contractor also constructs the base or foundation of the roadway, widens or relocates the roadbed, or lays concrete roads or concrete pavements. Jobs which involve the foregoing operations as well as paving shall be classified as 6042 street or road construction AIR CARRIER-SCHEDULED OR SUPPLEMENTAL-All members of FLYING CREW... 7405 Applies to scheduled or commercial air carriers, including cargo carriers, certified as such that conduct operations under Part 121 of the Federal Aviation Regulations and use aircraft capable of handling more than 30 passengers and/or a payload of 7,500 pounds or more. AIR CARRIER-COMMUTER-all members of FLYING CREW... 7431 Applies to commuter air carriers operating under Part 121, Part 127 or Part 135 of the Federal Aviation Regulations that use aircraft seating 30 or fewer passengers or payloads less than 7,500 pounds and which conduct at least five round trips per week between two or more points and publish flight schedules, that specify the time and days of the week and places, between which such flights are performed.