The New York Compensation Insurance Rating Board (NYCIRB) is a non-profit, unincorporated association of insurance carriers, including the State Insurance Fund. In conjunction with the New York Workers' Compensation Law, the Insurance Law provides for the Superintendent of Insurance to designate a rate service organization to collect the loss, premium and payroll data from each carrier, summarize this information and develop an adequate rate structure. Since the enactment of the Workers' Compensation Law in 1914, the NYCIRB has been licensed as the official organization for this purpose. As the New York rate service organization with a single dedication and focus, the New York Compensation Insurance Rating Board has more than 93 years of experience in understanding the workers compensation insurance coverage and underwriting of the New York market.

The Rating Board, in addition to its capacity as a rate service and data collection organization, performs the following functions and services as designated by the Superintendent of
Insurance

1. Administers the workers compensation classification system which assigns employers to the proper employment category. There are over 600 job classifications of work, and it is essential that each employer be classified properly, for otherwise, premium charges could be either excessive or inadequate. It is the NYCIRB's goal to see that each employer pay only their fair share of premiums.

2. To help provide a safer workplace for all employees, the NYCIRB administers the Experience Rating Plan and the Merit Rating Plan whereby employers are rewarded for better than average experience and penalized for poor experience as an inducement to encourage employers to become active in reducing the number and severity of accidents in the workplace.

3. Develops and verifies miscellaneous rating plans, such as the Retrospective Rating Plan, where employers have an opportunity to benefit even further through improvements in their own individual loss control.

4. Examines policy data for accuracy which includes the sending of criticisms to carriers for not using appropriate rates, classifications and other premium charges. Carriers who do not respond to these criticisms in a timely and accurate manner are fined according to a Program recommended by the New York Insurance Department and administered by the NYCIRB.

5. Administers the New York Payroll Limitation Program, effective October 1, 1999, which attempts to more equitably distribute premiums by geographic region for high and low wage paying employers in the construction industry. In this regard, the Board also continues to administer the Construction Classification Premium Adjustment Program which applies premium credits to those construction risks who do not receive adequate benefit from application of the Payroll Limitation Program.

6. Administers the New York Workplace Safety and Loss Consultation Program whereby insured's with payrolls and experience modifications exceeding certain mandated levels are instructed to undergo safety consultations and remediation where necessary.

7. Develops and enforces manual rules regarding the writing of workers compensation policies.

8. Handles policyholder, broker and carrier inquiries regarding workers compensation rules, rating values and other issues, and provides a forum for aggrieved parties to have their grievances heard at hearings afforded by the NYCIRB.

9. Inspects employer premises to authorize proper classifications.

10. Audits policyholder records to assure that carriers charge proper premiums.

In addition, the NYCIRB also provides information and cooperation to the insurance industry, the regulators, legislators and the public at large.