ACORD 130 Workers Compensation Application - Rating Information Section

How to Complete the Rating Information Section for the ACORD 130

The state rating worksheet rating information section of the worker compensation application is the heart and soul of the application.

STATE: Before you get into the main part of the section, enter the state for which this rating information applies.

LOC#: Location should track the location number listed in the LOCATIONS section on page 1.

CLASS CODE: This is a 4 digit code that corresponds to the type of work being done by the people whose payroll you are using to create the premiums.

The most common question we get is "Where do I find the Workers' Compensation Class Code?"

Here are some links to these codes...

https://www.wcrb.org/wcrb/classcode/main.asp

http://www.wcirb.com/content/classification-information

http://www.workerscompensationshop.com/workers_compensation_class_codes.htm

http://www.tdi.texas.gov/wc/regulation/

This used to be the hardest question to answer. I love Google. Just enter the phrase "workers compensation code" and then the name of the state you need the codes for, and you will get that information toute suite.

CATEGORIES, DUTIES, CLASSIFICATIONS: In the process of finding the class code, you will also have found the text to enter here.

Example: Code 8810 - Clerical Office Employees NOC. The NOC stand for not otherwise classified. They might work in an office but be some other classification such as Inside Sales, etc.

# EMPLOYEES: Enter a numeric value for the number of Full Time and the number of Part Time Employees classified under this code for this state.

SIC: Standard Industry Classification Code. You can find these at this link...

https://www.osha.gov/pls/imis/sicsearch.html

NAICS: The good old North American Industry Classification System codes. My Mother used to read these to me at bedtime. You can find them at these links...

https://www.census.gov/eos/www/naics/

https://www.census.gov/eos/www/naics/

ESTIMATED ANNUAL REMUNERATION / PAYROLL: Why ask for anything other than payroll? Sometimes room and board is considered remuneration and the carrier can include that when they audit the risk at the end of the policy term.

This is the total payroll for this classification adjusted for maximum payrolls for Executive Officers, Partners and Owners, for this classification for this state.

RATE: When you look up the Class code on a state specific or company specific site, you should see the rate for that class code listed. The rate is a dollar amount such as $0.52 or $3.14.

ESTIMATED ANNUAL MANUAL PREMIUM: The rate applies per $100.00 of payroll. So multiple the rate times the Payroll and divide by 100 to get this number..

Example:

Your Annual Payroll is $100,000.

Your Rate for this Class Code is $0.52

Multiple 100,000 times .52 = $52,000.

Divide $52,000 by 100 = $520.


I hope this helps you learn how to complete the State Rating Worksheet for the ACORD 130 Workers Compensation application.

We all learn for the first time some time.

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