NV 2020 03

National Council on Compensation Insurance State Relations—Regulatory Services
NOVEMBER 6, 2020 NV-2020-03

LOSS COSTS OR RATE FILING
Nevada–Voluntary Loss Costs, Assigned Risk Rates, and Rating Values Proposed to Be
Effective March 1, 2021
ACTION Please review this circular prior to the approval of the proposed changes detailed below.
NEEDED
Keep this filing circular because it will be supplemented but not replaced by an approval
circular upon regulatory approval. This filing circular and the approval circular will provide the
entire package of relevant information for this change.
Caution: When this filing circular was published, these values had been filed with the regulator
but were not yet approved. This information is provided for your convenience and analysis.
Please use the information “as is” and do not rely on the data until the filing has been approved
by the regulator.
BACKGROUND NCCI recently submitted a voluntary loss costs, assigned risk rates, and rating values filing to
the Nevada Division of Insurance. The filing is proposed to be effective March 1, 2021, for
new and renewal policies. Voluntary loss costs in this filing exclude all expense provisions
(except loss adjustment expenses).
Please note the following in connection with this filing:
• Although considered, since the combined impact and direction of all direct and indirect
COVID-19-related forces is unknown, no explicit adjustment has been made in this year’s
analysis at an overall or individual classification code level.
• As a result of Item B-1437, effective March 1, 2020:
• Class Codes 2286 and 2220 are combined to reflect the final year of a two-year
transition program, and Class Code 2286 is discontinued.
• Class Codes 2670 and 2688 are combined to reflect the final year of a two-year
• As a result of Item B-1439, effective March 1, 2021:
• Class Codes 2683 and 2501 are combined to reflect the first year of a two-year transition
program. In the second year of the transition, Class Code 2683 will be discontinued.
• Class Codes 3240 and 3257 are combined to reflect the first year of a two-year transition
• As a result of Item R-1418, the retrospective rating plan parameters were updated.
This circular contains the original filing and the detailed calculations and actuarial support. It
is a confidential and proprietary document of NCCI intended for the use of its affiliates, and
for their use only, as licensed by contract. NCCI, on behalf of its affiliates, reserves the right
to limit its unauthorized use or distribution.
IMPACT This filing proposes an overall average loss cost level decrease of 5.2% for the voluntary market
and an overall average rate level decrease of 9.9% for the assigned risk market.
NCCI ACTION NCCI will announce in an approval circular that these, or some alternative set of values,
have been approved by the regulator. We will post the filed advisory loss costs, assigned risk
rates, and rating values on ncci.com. In addition to this circular, the Individual Classification
Experience Exhibit is available in both a downloadable PDF format and a Microsoft® Excel
901 Peninsula Corporate Circle, Boca Raton, FL 33487-1362 2857 NV-2020-03

© 2020 National Council on Compensation Insurance, Inc. All Rights Reserved. ncci.com Page 1 of 2
spreadsheet on ncci.com. For more information, please contact our Customer Service Center at
800-NCCI-123 (800-622-4123).
NCCI makes no representation or warranty, express or implied, as to any matter including, but
not limited to, an assurance that the values in this circular will be approved by the regulator.
PERSON TO If you have any questions, please contact: Technical Contact:

CONTACT
Brett J. Barratt, JD, ARM, WCP Katherine Williamson, FCAS, MAAA
Senior State Relations Executive Director—Data Science
NCCI NCCI
901 Peninsula Corporate Circle 901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362 Boca Raton, FL 33487-1362
801-401-6464 561-893-3145
brett_barratt@ncci.com katherine_williamson@ncci.com
901 Peninsula Corporate Circle, Boca Raton, FL 33487-1362 2857 NV-2020-03

© 2020 National Council on Compensation Insurance, Inc. All Rights Reserved. ncci.com Page 2 of 2
Nevada
Voluntary Loss Costs,

Assigned Risk Rates, and
Rating Values Filing
Proposed Effective March 1, 2021
© Copyright 2020 National Council on Compensation Insurance, Inc. All Rights Reserved.
Brett J. Barratt, JD, ARM, WCP
Senior State Relations Executive
Regulatory Division

(P) 801‐401‐6464 (F) 561‐893‐5801
Email: Brett_Barratt@ncci.com

November 4, 2020

Ms. Barbara Richardson
Commissioner of Insurance
State of Nevada
Department of Business and Industry
Insurance Division
1818 E. College Parkway, Suite 103
Carson City, NV 89706
Re: Nevada Voluntary Loss Costs, Assigned Risk Rates, and Rating Values Proposed to Be Effective
March 1, 2021

Dear Commissioner Richardson,

In accordance with the applicable statutes and regulations of the state of Nevada, we are filing for your
consideration and approval voluntary loss costs, assigned risk rates, and rating values to be effective
March 1, 2021 for new and renewal policies.
This filing proposes an overall average change of ‐5.2% to the current voluntary loss cost level and an
overall average change of ‐9.9% to the current assigned risk rate level.
Please note the following in connection with this filing:
 Although considered, since the combined impact and direction of all direct and indirect COVID‐
19 related forces is unknown, no explicit adjustment has been made in this year’s analysis at an
overall or individual classification code level.
 As a result of Item B‐1437, effective March 1, 2020:
o Class Codes 2286 and 2220 are combined to reflect the final year of a two‐year
o Class Codes 2670 and 2688 are combined to reflect the final year of a two‐year
 As a result of Item B‐1439, effective March 1, 2021:
o Class Codes 2683 and 2501 are combined to reflect the first year of a two‐year transition
o Class Codes 3240 and 3257 are combined to reflect the first year of a two‐year transition
 As a result of Item R‐1418 the retrospective rating plan parameters are updated.
901 Peninsula Corporate Circle • Boca Raton, FL 33487 • www.ncci.com
This filing is made exclusively on behalf of the companies that have given valid consideration for the
express purpose of fulfilling regulatory rate or pure premium filing requirements and other private use
of this information.

In the enclosed appendix is a list of companies, which as of the time this filing is submitted, are eligible
to reference this information. The inclusion of a company on this list merely indicates that the
company, or the group to which it belongs, is affiliated with NCCI in this state, or has licensed this
information as a non‐affiliate, and is not intended to indicate whether the company is currently writing
business or is even licensed to write business in this state.

Please contact me at (801) 401‐6464 or Katherine Williamson at (561) 893‐3145 if you have any
questions or need any further information.

Sincerely,

 Copyright 2020 National Council on Compensation Insurance, Inc. All Rights Reserved.
These materials are comprised of NCCI actuarial judgment and proprietary and confidential information
which are valuable assets of NCCI and are protected by copyright and other intellectual property laws.
Any persons in the legal possession of these materials are required to maintain them in the strictest
confidence and shall implement sufficient safeguards to protect the confidentiality of such materials in
the same respect as it protects its own intellectual property. NCCI will seek appropriate legal remedies
for any unauthorized use, sale, reproduction, distribution, preparation of derivative works, or transfer of
this material, or any part thereof in any media. Authorized uses of these materials are governed by one
or more agreements between NCCI and an end user. Unless expressly authorized by NCCI, you may
not copy, create derivative works (by way of example, create or supplement your own works, or other
materials), display, perform, or use the materials, in whole or in part, in any media and in any manner
including posting to a web site.
NCCI MAKES NO REPRESENTATIONS OR WARRANTIES RELATING TO THESE MATERIALS,

INCLUDING ANY EXPRESS, STATUTORY OR IMPLIED WARRANTIES INCLUDING THE IMPLIED
WARRANTY OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
ADDITIONALLY, AUTHORIZED END USERS ASSUME RESPONSIBILITY FOR THE USE OF, AND
FOR ANY AND ALL RESULTS DERIVED OR OBTAINED THROUGH THE USE OF SUCH MATERIALS.

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Loss Cost and Assigned Risk Rate Filing – March 1, 2021
Actuarial Certification
I, Katherine Williamson, am a Director of Data Science for the National Council on

Compensation Insurance, Inc. I am a Fellow of the Casualty Actuarial Society and a member of
the American Academy of Actuaries, and I meet the Qualification Standards of the American
Academy of Actuaries to provide the actuarial report contained herein.
The information contained in this report has been prepared under my direction in accordance
with applicable Actuarial Standards of Practice as promulgated by the Actuarial Standards
Board. The Actuarial Standards Board is vested by the U.S.-based actuarial organizations with
the responsibility for promulgating Actuarial Standards of Practice for actuaries providing
professional services in the United States. Each of these organizations requires its members,
through its Code of Professional Conduct, to observe the Actuarial Standards of Practice when
practicing in the United States.
Katherine Williamson, FCAS, MAAA

Director – Data Science
Actuarial and Economic Services


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Disclosures
Purpose of the Report
The purpose of this report is to provide the proposed voluntary loss costs and assigned risk
rates for workers compensation policies in Nevada, proposed to be effective March 1, 2021. The
intended users of this report are:
 The Nevada Division of Insurance
 Affiliated carriers, for their reference in determining workers compensation rates
Scope
The prospective loss costs are intended to cover the indemnity and medical benefits provided
under the system, as well as some of the expenses associated with providing these benefits
(loss adjustment expenses). They do not, however, contemplate any other costs associated with
providing workers compensation insurance (such as commissions, taxes, etc.).
Although considered, since the combined impact and direction of all direct and indirect COVID-
19 related forces is unknown, no explicit adjustment has been made in this year’s analysis at an
overall or individual classification code level.
Each insurance company offering workers compensation insurance in Nevada must file a loss
cost multiplier to be applied to the approved advisory prospective loss costs in order to compute
the final workers compensation rates they intend to charge. This multiplier is intended to cover
the other costs associated with providing workers compensation insurance that are not already
part of the advisory prospective loss costs.
Employers unable to secure coverage in the voluntary market can apply for such coverage in
the assigned risk market. The proposed assigned risk rates are intended to cover the indemnity
and medical benefits provided under the system, the expenses associated with providing these
benefits (loss adjustment expenses), and any other costs associated with providing workers
compensation insurance (such as commissions, taxes, etc.).
Data Sources and Dates

The overall average loss cost level change is based on a review of Financial Call Data, which is
an aggregation of workers compensation data annually reported to NCCI. In this filing, Financial
Call Data submissions received after August 19, 2020 were not considered for inclusion in the
analysis.

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Disclosures
The overall average loss cost level change in this filing is based on premium and loss
experience evaluated as of December 31, 2019. Therefore, this data does not reflect any
potential direct or indirect effects of the COVID-19 pandemic.
Loss cost level changes at the classification code level are based on five years of Unit Statistical
Plan Data, which is the audited exposure, premium, and loss information reported to NCCI on a
policy level. The Unit Statistical Plan Data used in this filing includes policies with expiration
dates through December 2018. Therefore, the individual classification code experience does not
reflect potential direct or indirect effects of the COVID-19 pandemic. In this filing, Unit Statistical
Data submissions received after September 8, 2020 were not considered for inclusion in the
analysis.
In some areas, NCCI’s analysis also relies on other data sources, which are reviewed for
reasonableness and are referenced in the filing where applicable.
This filing was prepared as of October 2, 2020. Therefore, events that occurred after this date
that may have a material impact on workers compensation costs in this jurisdiction have not
been considered in the analysis.
NCCI maintains several data reporting initiatives and programs to assist carriers to report data
and to ensure that the data that is reported to NCCI is complete, accurate, and reported in a
timely fashion. Occasionally, a carrier’s data submission is not available for use in an NCCI filing
either because the data was not reported prior to the filing, had quality issues, or NCCI
determined that the data that was reported should not be included in the filing based on NCCI's
actuarial judgment.
Data for all carriers writing at least one-tenth of one percent of the Nevada workers
compensation written premium volume have been included in the experience period on which
this filing is based.
Other exclusions are made for the purposes of analysis, but do not have a material impact on
the proposed changes in this filing.
Risks and Uncertainty

This filing includes assumptions and projections concerning the future. As with any prospective
analysis, there exists estimation uncertainty in these assumptions and projections. Areas of this
analysis subject to estimation uncertainty that could have a material impact on the final results
include the following:

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Disclosures
 Projection of future loss development

 Selection of loss ratio trends
 Potential impact of changes to laws and/or regulations
In addition, any future changes to workers compensation law or regulations that apply
retroactively to policies or benefit claims on policies in the proposed effective period may have a
significant impact on the adequacy of the loss costs proposed in this filing.
The premium and loss experience on which this filing is based does not reflect potential direct or
indirect effects of the COVID-19 pandemic. At this time, the course of the pandemic remains
unclear and represents a significant source of uncertainty with respect to estimating workers
compensation system costs for the proposed loss cost effective period.
The direct effect of compensable claims resulting from COVID-19 infections may put upward
pressure on workers compensation costs, as could certain indirect effects. For example, there is
potential for the weakened labor market to lengthen return-to-work times or adverse loss
development to occur if the pandemic serves to increase the time to medical treatment for
injured workers. However, it is possible that other various effects may put downward pressure
on workers compensation costs—such as increased telecommuting, decreased exposure to
motor vehicle accidents, and an increased use of telehealth for injured workers. Additional
COVID-19-related considerations, such as future economic conditions and their corresponding
impact on the labor market, contribute additional uncertainty when estimating future costs.
The ongoing COVID-19 pandemic creates additional uncertainty regarding the makeup and loss
experience of the residual market. Employers who obtain policies in the residual market due to
potential COVID-19 exposure may differ from the types of employers in the historical residual
market data analyzed in this filing.
After considering direct and indirect pandemic-related factors, it is reasonable to believe they
will give rise to component changes that may, to some extent, have offsetting impacts on
workers compensation system costs. Although considered, since the combined impact and
direction of all direct and indirect COVID-19-related forces is unknown, no explicit adjustment for
the pandemic has been made in this year’s analysis at an overall or individual classification
code level.
Nevada
Voluntary Loss Cost and Assigned Risk Rate Filing – March 1, 2021
Table of Contents
Part 1 Filing Overview
- Executive Summary
- Overview of Methodology
- Summary of Selections
- Selections Underlying the Proposed Changes
- Additional Proposed Changes
Part 2 Proposed Values
- Proposed Voluntary Loss Costs and Rating Values

- Proposed Assigned Risk Rates and Rating Values
- Proposed Values for Inclusion in the Experience Rating Plan Manual
- Proposed Values for Inclusion in the Retrospective Rating Plan Manual
Part 3 Supporting Exhibits
- Exhibit I: Determination of the Indicated Loss Cost Level Change

- Exhibit II: Workers Compensation Loss Adjustment Expenses
- Appendix A: Factors Underlying the Proposed Loss Cost Level Change
- Appendix B: Calculations Underlying the Loss Cost Change by Classification
- Appendix C: Memoranda for Laws and Assessments
- Appendix D: Advisory Loss Costs Comparison
- Appendix E: Determination of Assigned Risk Rates
- Appendix F: Derivation of Experience Rating Values
Part 4 Additional Information
- Definitions
- NCCI Affiliate List
- Key Contacts
Nevada
Voluntary Loss Cost and Assigned Risk Rate Filing – March 1, 2021
Part 1 Filing Overview
- Executive Summary
- Overview of Methodology
- Summary of Selections
- Selections Underlying the Proposed Changes
- Additional Proposed Changes
Page 10 of 127

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Executive Summary
Based on its review of the most recently available data, NCCI has proposed an overall average
workers compensation voluntary market loss cost level change of –5.2% to become effective
March 1, 2021. In addition, NCCI has proposed an overall average assigned risk rate level
change of –9.9%, also to become effective March 1, 2021.
Key Components Percentage Change

Impact of change in Experience and Development –7.7%
Impact of change in Trend +1.1%
Impact of change in Benefits +0.7%
Impact of change in Loss Adjustment Expenses +0.9%
Proposed Change in Overall Voluntary Loss Cost Level –5.2%
Impact of change in Assigned Risk Loss Cost Multiplier –5.0%

Proposed Change in Overall Assigned Risk Rate Level –9.9%
Key observations:
 The overall loss cost level change in this filing is based on premium and loss experience for
Policy Years 2017 and 2018, evaluated as of December 31, 2019. This data does not reflect
any effects of the COVID-19 pandemic. Policy Years 2017 and 2018 experience is
favorable.
 In the determination of the loss development factors consideration was given to the impacts
of the revised Actuarial Annuity Table, adopted effective December 4, 2017.
 Nevada’s claim frequency continues to decline. After adjusting to a common wage level,
medical average cost per case figures have exhibited relatively more stability in recent years
when compared with those for indemnity.
Proposed Changes in Voluntary Loss Cost Level by Industry Group:
Average Maximum Maximum

Industry Group Change Increase Decrease
Manufacturing –5.8% +14% –26%
Contracting –5.1% +15% –25%
Office and Clerical –5.5% +15% –25%
Goods and Services –6.6% +13% –27%
Miscellaneous –2.3% +18% –22%
Additional Notable Changes Proposed in the Filing:
 Proposed Change to the Countrywide Adjusting and Other Expense (AOE) Provision
 Proposed Change to the Basis for Determining the Assigned Risk Differential
Page 11 of 127

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Overview of Methodology
Aggregate Ratemaking
NCCI’s approach to determining the proposed overall average loss cost level change utilizes
widely accepted ratemaking methodologies. The approach employed in this filing includes the
following steps:
 The reported historical premium totals are projected to an ultimate basis and adjusted to
the current pure premium level
 The reported historical indemnity and medical loss totals are projected to an ultimate
basis and adjusted to the current benefit level
 Ratios of losses to pure premium are projected to the cost levels expected in the loss
cost effective period
 Proposed benefit level and/or expense changes are applied to the projected cost ratios
The indicated average loss cost level change is calculated for the years in the filing’s experience
period. If the final projected cost ratios are greater (less) than 1.000, then an increase
(decrease) in the average loss cost level is indicated.
Class Ratemaking
Once the proposed overall average voluntary loss cost level change has been determined,
NCCI separately determines loss costs per $100 of payroll for each workers compensation job
classification (class); the loss costs and year-over-year changes vary by class. Three sets of
pure premiums are combined as part of each class code’s loss cost calculation based on the
volume of available data for that job classification. The three sets of pure premiums are:
 State-specific payroll and loss experience (“indicated”)
 Currently-approved pure premium adjusted to the proposed level (“present on rate
level”)
 Countrywide experience adjusted to state conditions (“national”)
Assigned Risk Rates
The proposed assigned risk rates are then determined for each job classification as the product
of the classification’s voluntary loss cost and a loss cost multiplier (LCM). The LCM incorporates
the indicated assigned risk market expense need, changes to the assigned risk differential, and
the proposed uncollectible premium provision.
Note: The methodology and assumptions used in this filing may not be applicable to or relevant
for another purpose, including but not limited to NCCI filings in other jurisdictions.
Page 12 of 127

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Summary of Selections
The following is a summary of selections underlying the voluntary loss costs and assigned risk
rates proposed to be effective March 1, 2021, along with the selections underlying the filing
effective March 1, 2020.
Approved Proposed Effective

Voluntary Loss Costs March 1, 2020 March 1, 2021
Experience Period Policy Years 2016 and 2017 Policy Years 2017 and 2018
Premium Development 3-year average 3-year average
Basis of Loss Experience Paid losses Paid losses
Paid Loss Development 3-year average* 3-year average*
Tail Factors Selected Selected
Indemnity Annual Loss Ratio Trend Factor 0.960 0.970
Medical Annual Loss Ratio Trend Factor 0.970 0.965
Loss Adjustment Expense Provision 17.0% 18.0%
Classification Swing Limits

+/-20% +/-20%
(applied by Industry Group)
*Indemnity paid development has been adjusted to account for the calendar year 2018 impact from the adoption of
the Actuarial Annuity Table, pursuant to NRS 616C.495.
Approved Proposed Effective

Assigned Risk Rates March 1, 2020 March 1, 2021
Assigned Risk Loss Cost Differential 1.300 1.300
Profit and Contingencies Provision 0% 0%
Uncollectible Premium Provision 1.015 1.015
Maximum Minimum Premium $1,100 $1,100
Page 13 of 127

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Selections Underlying the Proposed Changes
Experience and Development

NCCI analyzed the emerging experience of Nevada workers compensation policies in recent
years. The primary focus of our analysis was on premiums and losses from policy years 2017
and 2018 evaluated as of December 31, 2019. The most recently available full policy year is
2018 since the last policy had an effective date of December 31, 2018 and did not expire until
December 31, 2019. During this year’s analysis, after reviewing various possible experience
periods, the use of the two most recently available full policy years of data was selected as most
appropriate in terms of providing balance between stability and responsiveness.
The specific loss experience used by NCCI in this filing is paid losses which are the benefit
amounts already paid by insurers on reported claims. This is consistent with NCCI filings made
in the past several years in Nevada. Loss development factors are needed since paid losses on
a given claim change over time until the claim is finally closed. The loss development factors are
based on how paid losses changed over time for claims from older years. The specific
development link ratio selections underlying this filing are shown below:
 A three-year average of historical premium development factors
 A three-year average of historical paid loss development factors through a 16th report
 Loss development tail factors on an accident year 16th to ultimate basis are selected
based on the results of fitting an inverse power curve to incremental loss development
factors as well as reviewing the historical loss development patterns
 The indemnity paid loss development factors include an adjustment for the adoption of
the Actuarial Annuity Table, pursuant to NRS 616C.495 and Enacted Assembly Bill 438
The ultimate impact that the COVID-19 pandemic will have on loss development factors is
unknown. Although considered, since the combined impact and direction of all direct and
indirect COVID-19-related forces is unknown, no explicit adjustment for the pandemic has been
made in this year’s analysis.
Trend
This filing relies primarily on the experience from policy years 2017 and 2018. However, the
proposed loss costs and assigned risk rates are intended for use with policies with effective
dates starting on March 1, 2021. It is necessary to use trend factors that forecast how much the
future Nevada workers compensation experience will differ from the past. These trend factors
measure anticipated changes in the amount of indemnity and medical benefits as compared
with anticipated changes in the amount of workers’ wages. For example, if benefit costs are
expected to grow faster than wages, then a trend factor greater than zero is indicated.
Conversely, if wages are expected to grow faster than benefit costs, then a trend factor less
than zero is indicated. While historical changes in claim frequency and average cost per case
Page 14 of 127

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were also reviewed, NCCI applies loss ratio trend factors in the determination of the proposed
overall average loss cost level change.
The COVID-19 pandemic is an extraordinary, unprecedented event. At this time, the overall
impact the COVID-19 pandemic may have on trends is indeterminate. It is reasonable to believe
COVID-19 will give rise to component changes that may, to some extent, have offsetting
impacts on system costs. For example,
 There could be an increase in the number of compensable workers compensation claims

arising in occupations with greater potential exposure to the pandemic
 There could be a decrease in workers compensation claims due to the increased
number of employees who are teleworking
Short- and long-term COVID-19-related impacts may also differ. For example,
 In the short term, during the COVID-19 pandemic, there may be a reduction in the
number of physical therapy sessions attended by injured employees and/or a deferral in
the number of workers compensation-related surgeries that are not deemed to be
immediately critical
 Over the longer term, an increase in these types of services may be expected as the
current burden on medical-related personnel and facilities is lessened
 In economic downturns, workers may forego filing claims for certain injuries to maintain
active employment as the economy navigates these uncertain times—leading to
temporary downward pressure on claim frequency
Although considered, since the combined impact and direction of all direct and indirect COVID-
19-related forces is unknown, no explicit adjustment for the pandemic has been made in this
year’s trend analysis.
Page 15 of 127

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The following few charts show a measure of the number of workplace injuries (claim frequency)
and the average cost of each of these injuries (claim severity).
Nevada Claim Frequency

Per Million of On-Leveled, Wage-Adjusted Premium
30
26.5
25.3
25 23.0
22.2 21.7 21.4 21.5
20.8
20.2 20.2
19.5 19.2
20
17.6
16.8
15.6
15
10
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Policy Year
Nevada’s lost-time claim frequency has steadily declined over the last several years, as shown
above. The data in this chart reflects premiums at today’s loss cost and wage levels.
Page 16 of 127

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Nevada Indemnity Average Cost Per Case

Adjusted to a Common Wage Level, Based on Paid Losses
50,000
41,691
40,000 37,794 37,423 36,966

34,794 35,555
32,435
30,921 31,415 31,368
30,092 35,561
30,000 32,815
31,478 32,254
20,000
10,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Policy Year
Nevada Medical Average Cost Per Case

Adjusted to a Common Wage Level, Based on Paid Losses
50,000
40,000 36,123
31,894 32,083
30,857 30,404
28,908 28,497 28,766 28,994
30,000 27,549
30,746
28,074 28,666
25,909 26,964
20,000
10,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Policy Year
Nevada’s average medical cost per case figures in excess of wage growth have exhibited
relatively more stability in recent years when compared to those for indemnity.
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Loss ratios result after combining observed changes in Nevada’s average claim frequency with
corresponding changes in Nevada’s average cost per case.
Nevada Indemnity Loss Ratio History

1.00
Based on Paid Losses
0.858 0.838 0.842
0.783 0.801
0.777
0.80
0.683 0.675 0.663
0.647
0.612 0.621 0.626
0.599
0.577
0.60
0.40
0.20
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Policy Year
Nevada Medical Loss Ratio History

Based on Paid Losses
1.00
0.817 0.832
0.80 0.711 0.708

0.666 0.652
0.621 0.628
0.557 0.576
0.60 0.537 0.519 0.507
0.483
0.452
0.40
0.20
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Policy Year
Based on our analysis this year, we are proposing to increase the indemnity loss ratio trend
from –4.0% to –3.0% and to decrease the annual medical loss ratio trend from –3.0% to –3.5%.
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Benefit Changes
NCCI has included the impact of the most recent Medical Fee Schedule update effective
February 1, 2020. This change is estimated to increase overall workers compensation system
costs by 0.7%. Please see Appendix C-I for additional detail.
Loss Adjustment Expenses
The proposed loss costs include a provision for loss adjustment expenses (LAE). These are
expenses associated with the handling of workers compensation claims. LAE is included in the
loss costs by using a ratio of loss adjustment expense dollars to loss dollars (called the LAE
provision). In this filing, NCCI is proposing to increase the current voluntary LAE provision from
17.0% to 18.0% of losses. Please see Exhibit II for additional detail.
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Additional Proposed Changes
Proposed Change to the Countrywide Adjusting and Other Expense (AOE) Provision
Calculation

Each year, NCCI performs a countrywide analysis to determine an actuarially appropriate AOE
provision for inclusion in state loss cost/rate filings. The analysis is based on data from NCCI’s
Call for Loss Adjustment Expense (Financial Call #19).
As a result of Third-Party Administrator (TPA) agreements, some carriers report losses on Call
#19 without associated AOE. Beginning with this filing, for policies associated with TPA
agreements where the AOE is not reported to NCCI, the associated losses will be excluded
from the AOE analysis so that they do not impact the countrywide ultimate AOE ratios. All other
aspects of the current AOE methodology remain unchanged.
Proposed Change to the Basis for Determining the Assigned Risk Differential
This filing proposes a modification to the approach for determining the assigned risk differential;
this change will more equitably distribute the overall average statewide loss experience change
to the separate assigned risk and voluntary markets.
In past filings, the assigned risk differential was based on a comparison of loss ratio experience
between the assigned risk and statewide (assigned risk plus voluntary) markets. The proposed
approach compares assigned risk market loss ratios to those based on voluntary market data
alone. Determining the assigned risk differential based on the results of an assigned risk-to-
voluntary market comparison is more directly aligned with the relationship that underlies the
assigned risk rates and voluntary loss costs by individual classification code.
This change is premium neutral on an overall basis.
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Part 2 Proposed Values
- Proposed Voluntary Loss Costs and Rating Values
- Proposed Assigned Risk Rates and Rating Values
- Proposed Values for Inclusion in the Experience Rating Plan Manual
- Proposed Values for Inclusion in the Retrospective Rating Plan Manual
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Nevada

Voluntary

Proposed Voluntary Loss Costs and Rating Values
The following pages include proposed voluntary loss costs and rating values:
 Voluntary loss costs, expected loss rates, and d-ratios by class code, along with associated
footnotes
o The “X” footnote denoting a state special classification phraseology will no longer be
shown on the following pages. Refer to the special classifications section of the
Basic Manual for any state specific classification phraseology.
 Advisory miscellaneous values, such as:
o Advisory loss elimination ratios

o Maximum and minimum weekly payroll applicable for select class codes
o Premium determination for Partners and Sole Proprietors
o Catastrophe and terrorism advisory loss costs
o United States Longshore and Harbor Workers’ Compensation Coverage Percentage
Page 22 of 127
ADVISORY
LOSS COSTS - NOT RATES NEVADA

Advisory loss costs exclude all expense provisions except loss adjustment expense.


CLASS
LOSS D CLASS LOSS D CLASS LOSS D
CODE COST ELR RATIO CODE COST ELR RATIO CODE COST ELR RATIO
0005 2.73 1.65 0.41 2041 2.22 1.42 0.43 2735 3.34 2.13 0.43
0008 1.84 1.03 0.40 2065 1.56 0.94 0.41 2759 5.45 3.48 0.43
0016 4.06 2.06 0.35 2070 3.62 2.18 0.41 2790 2.60 1.66 0.44
0034 2.54 1.53 0.41 2081 2.49 1.50 0.41 2797 3.11 1.88 0.41
0035 1.62 1.03 0.43 2089 3.00 1.81 0.41 2799 4.23 2.37 0.40
0036 3.59 2.16 0.41 2095 3.22 1.94 0.41 2802 5.18 2.90 0.40
0037 2.61 1.46 0.40 2105 3.32 2.12 0.43 2835 2.02 1.36 0.50
0042 3.89 2.17 0.40 2110 1.83 1.17 0.43 2836 2.41 1.62 0.50
0050 4.07 2.45 0.41 2111 1.95 1.25 0.43 2841 3.08 1.97 0.43
0079 2.63 1.34 0.35 2112 3.53 2.25 0.43 2881 2.25 1.51 0.50
0083 6.33 3.82 0.41 2114 2.42 1.55 0.43 2883 3.38 2.04 0.41
0106 13.48 6.22 0.34 2121 1.12 0.67 0.41 2913 – 2.04 0.41
0113 2.96 1.79 0.41 2130 1.66 1.00 0.41 2915 2.95 1.65 0.40
0169 5.11 3.09 0.42 2131 1.64 0.99 0.41 2916 2.71 1.25 0.34
0170 1.96 1.18 0.41 2143 2.35 1.50 0.43 2923 1.70 1.08 0.43
0251 3.56 2.15 0.41 2157 3.83 2.31 0.41 2942 – 0.52 0.50
0400 – 1.07 0.40 2172 1.35 0.75 0.39 2960 3.89 2.34 0.41
0401 8.04 3.71 0.34 2174 2.31 1.48 0.43 3004 1.44 0.73 0.35
0771N 0.45 – – 2211 4.95 2.51 0.35 3018 3.42 1.74 0.35
0908P 142.00 85.35 0.41 2220 1.62 0.98 0.41 3022 3.12 1.99 0.43
0913P 352.00 212.32 0.41 2286 – 0.98 0.41 3027 2.44 1.24 0.35
0917 2.52 1.61 0.43 2288 3.03 1.93 0.43 3028 2.60 1.57 0.41
1005 7.48 2.98 0.33 2300 – 1.10 0.41 3030 4.69 2.38 0.35
1016 13.07 5.21 0.33 2302 1.42 0.86 0.41 3040 4.57 2.32 0.35
1164D 3.60 1.42 0.33 2305 1.87 1.04 0.40 3041 3.11 1.87 0.41
1165D 3.56 1.61 0.34 2361 1.56 0.94 0.42 3042 3.62 2.02 0.40
1320 2.24 1.03 0.34 2362 1.69 1.02 0.41 3064 3.45 2.08 0.41
1322 6.02 2.77 0.34 2380 1.78 1.07 0.41 3076 2.64 1.59 0.41
1430 3.57 1.81 0.35 2386 – 1.10 0.41 3081D 4.20 2.10 0.35
1438 4.41 2.03 0.34 2388 1.07 0.69 0.43 3082D 3.42 1.69 0.35
1452 2.39 1.21 0.35 2402 2.21 1.12 0.35 3085D 5.48 2.73 0.35
1463 10.23 4.72 0.33 2413 2.00 1.21 0.41 3110 3.52 2.12 0.41
1472 2.67 1.23 0.34 2416 1.63 0.98 0.41 3111 1.76 1.06 0.41
1624D 3.83 1.75 0.34 2417 1.01 0.61 0.41 3113 1.37 0.83 0.41
1642 3.00 1.52 0.35 2501 1.82 1.10 0.41 3114 2.20 1.33 0.41
1654 4.83 2.45 0.35 2503 1.68 1.07 0.43 3118 1.49 0.95 0.43
1655 – 1.52 0.35 2534 – 1.10 0.41 3119 0.75 0.50 0.50
1699 3.00 1.53 0.35 2570 3.05 1.94 0.43 3122 1.71 1.09 0.43
1701 2.83 1.43 0.35 2585 2.75 1.75 0.43 3126 1.27 0.77 0.41
1710D 4.68 2.34 0.35 2586 2.44 1.47 0.41 3131 1.47 0.89 0.41
1741 – 1.43 0.35 2587 2.62 1.67 0.43 3132 2.27 1.37 0.41
1747 1.80 0.91 0.35 2589 1.73 1.05 0.41 3145 1.75 1.06 0.41
1748 4.26 2.16 0.35 2600 3.79 2.41 0.43 3146 2.03 1.23 0.41
1803D 5.73 2.45 0.34 2623 5.91 3.31 0.40 3169 2.32 1.40 0.41
1852 – 0.63 0.33 2651 1.61 1.03 0.43 3175 – 1.40 0.41
1853 – 1.43 0.35 2660 2.07 1.32 0.43 3179 1.90 1.21 0.43
1860 – 1.27 0.41 2670 – 1.46 0.43 3180 1.83 1.17 0.43
1924 2.08 1.32 0.43 2683 1.82 1.10 0.41 3188 1.61 1.03 0.43
1925 3.03 1.70 0.40 2688 2.29 1.46 0.43 3220 1.59 0.96 0.41
2002 2.49 1.59 0.43 2702 19.37 7.74 0.33 3223 – 1.17 0.43
2003 2.61 1.58 0.41 2709 10.09 5.12 0.35 3224 2.95 1.88 0.43
2014 4.08 2.07 0.35 2710 8.33 3.84 0.34 3227 2.31 1.48 0.43
2016 2.14 1.37 0.43 2714 3.82 2.44 0.43 3240 2.21 1.34 0.41
2021 2.59 1.45 0.40 2727 5.80 2.94 0.35 3241 2.12 1.28 0.41
2039 2.02 1.29 0.43 2731 3.26 1.66 0.35 3255 1.95 1.32 0.50
Refer to the special classification section of the Basic Manual for any state specific classification phraseology.
* Refer to the Footnotes Page for additional information on this class code.
Page 23 of 127
ADVISORY



CLASS
3257 2.21 1.34 0.41 4061 – 1.27 0.41 4692 0.55 0.35 0.43
3270 2.27 1.37 0.41 4062 2.11 1.27 0.41 4693 0.74 0.45 0.41
3300 3.52 2.13 0.42 4101 4.42 2.46 0.39 4703 1.61 0.97 0.41
3303 1.97 1.26 0.43 4109 0.37 0.24 0.43 4717 1.84 1.24 0.50
3307 2.52 1.52 0.41 4110 0.69 0.42 0.41 4720 1.92 1.16 0.41
3315 3.18 2.03 0.43 4111 1.43 0.91 0.43 4740 2.26 1.15 0.35
3334 2.11 1.27 0.41 4113 – 0.91 0.43 4741 2.13 1.29 0.41
3336 2.17 1.10 0.35 4114 2.37 1.43 0.41 4751 1.68 0.85 0.35
3365 2.65 1.34 0.35 4130 3.51 2.12 0.42 4771N 2.54 1.01 0.33
3372 2.49 1.39 0.40 4131 4.09 2.61 0.43 4777 2.79 1.12 0.33
3373 3.27 1.97 0.41 4133 1.97 1.26 0.43 4825 0.88 0.45 0.35
3383 1.56 1.00 0.43 4149 0.55 0.37 0.50 4828 1.92 1.07 0.40
3385 0.76 0.48 0.43 4206 2.51 1.52 0.41 4829 1.63 0.75 0.33
3400 3.22 1.80 0.40 4207 1.68 0.85 0.35 4902 2.10 1.34 0.43
3507 2.26 1.36 0.41 4239 1.82 0.92 0.35 4923 1.20 0.72 0.42
3515 1.97 1.19 0.41 4240 2.76 1.76 0.43 5020 4.02 2.04 0.35
3548 0.86 0.52 0.41 4243 1.74 1.05 0.41 5022 5.26 2.42 0.34
3559 2.22 1.34 0.41 4244 2.85 1.72 0.42 5037 9.38 3.75 0.33
3574 1.06 0.68 0.43 4250 1.45 0.88 0.41 5040 5.57 2.23 0.33
3581 0.90 0.58 0.43 4251 2.22 1.34 0.41 5057 3.88 1.55 0.33
3612 1.54 0.86 0.40 4263 2.45 1.48 0.41 5059 13.40 5.36 0.33
3620 3.50 1.77 0.35 4273 2.18 1.31 0.41 5069 – 5.36 0.33
3629 1.22 0.78 0.43 4279 2.11 1.27 0.41 5102 4.78 2.20 0.34
3632 2.06 1.15 0.40 4282 – 1.27 0.41 5146 4.00 2.03 0.35
3634 1.40 0.89 0.43 4283 1.13 0.68 0.41 5160 1.54 0.71 0.34
3635 1.93 1.17 0.41 4299 1.54 0.98 0.43 5183 3.41 1.73 0.35
3638 1.70 1.08 0.43 4304 3.12 1.74 0.40 5188 2.58 1.31 0.35
3642 1.13 0.68 0.41 4307 1.36 0.92 0.50 5190 2.02 1.02 0.35
3643 1.50 0.90 0.41 4351 0.75 0.45 0.41 5191 1.02 0.62 0.41
3647 2.08 1.16 0.40 4352 2.60 1.67 0.44 5192 2.20 1.33 0.41
3648 1.53 0.98 0.43 4360 – 0.19 0.35 5213 5.34 2.46 0.34
3681 0.66 0.42 0.43 4361 0.92 0.58 0.43 5215 3.74 2.09 0.40
3685 0.80 0.51 0.43 4410 2.40 1.45 0.41 5221 3.85 1.95 0.35
3719 0.80 0.32 0.33 4420 3.12 1.43 0.34 5222 7.14 3.29 0.34
3724 2.71 1.25 0.34 4431 1.21 0.81 0.50 5223 3.60 1.82 0.35
3726 2.38 0.95 0.33 4432 0.77 0.52 0.50 5348 3.21 1.63 0.35
3803 2.07 1.25 0.41 4439 – 1.06 0.41 5402 4.03 2.57 0.43
3807 2.10 1.34 0.43 4452 2.40 1.45 0.41 5403 4.72 2.18 0.34
3808 2.55 1.42 0.40 4459 2.46 1.48 0.41 5437 4.55 2.30 0.35
3821 3.68 2.06 0.40 4470 2.12 1.28 0.41 5443 2.83 1.71 0.41
3822 2.84 1.59 0.40 4484 2.42 1.46 0.41 5445 4.11 1.89 0.34
3824 3.73 2.09 0.40 4493 2.95 1.78 0.41 5462 5.18 2.63 0.35
3826 0.93 0.56 0.41 4511 0.61 0.34 0.40 5472 4.27 1.70 0.33
3827 1.74 0.97 0.40 4557 1.89 1.20 0.43 5473 5.85 2.34 0.33
3830 0.88 0.49 0.40 4558 1.75 1.06 0.41 5474 4.03 1.86 0.34
3851 1.88 1.20 0.43 4568 1.81 0.92 0.35 5478 3.10 1.57 0.35
3865 1.61 1.08 0.50 4581 0.79 0.37 0.33 5479 4.51 2.52 0.40
3881 3.05 1.84 0.41 4583 3.88 1.79 0.34 5480 4.67 2.15 0.34
4000 4.33 1.99 0.34 4611 0.94 0.60 0.43 5491 1.49 0.69 0.34
4021 3.42 1.73 0.35 4635 2.37 0.95 0.33 5506 5.08 2.03 0.33
4024D 3.43 1.73 0.35 4653 1.40 0.89 0.43 5507 3.78 1.74 0.34
4034 4.48 2.27 0.35 4665 6.57 3.33 0.35 5508 – 1.74 0.34
4036 1.81 0.92 0.35 4670 – 2.26 0.41 5535 5.37 2.72 0.35
4038 1.85 1.25 0.50 4683 3.75 2.26 0.41 5537 3.95 2.00 0.35
4053 – 1.27 0.41 4686 1.83 0.93 0.35 5551 7.22 2.89 0.33
Page 24 of 127
ADVISORY



CLASS
5606 1.10 0.51 0.34 7099M 9.84 3.77 0.33 7724 – 2.27 0.35
5610 3.24 1.96 0.41 7133 3.06 1.41 0.34 7726 0.30 0.12 0.33
5645 7.93 3.66 0.34 7151M 3.72 1.71 0.34 7855 2.67 1.36 0.35
5703 10.33 5.24 0.35 7152M 5.06 2.24 0.34 8001 1.77 1.13 0.43
5705 10.13 5.14 0.35 7153M 4.13 1.90 0.34 8002 1.62 0.98 0.42
5951 0.34 0.21 0.44 7219 6.16 2.84 0.34 8006 1.66 1.00 0.41
6003 5.58 2.82 0.35 7222 8.46 4.27 0.35 8008 0.71 0.46 0.43
6005 3.00 1.52 0.35 7225 5.50 2.79 0.35 8010 1.32 0.84 0.43
6017 – 2.46 0.34 7228 – 2.84 0.34 8013 0.31 0.19 0.41
6018 2.19 1.11 0.35 7229 – 2.84 0.34 8015 0.65 0.39 0.41
6045 3.65 1.85 0.35 7230 7.94 4.44 0.40 8017 1.01 0.65 0.43
6204 4.34 2.00 0.34 7231 7.00 3.91 0.40 8018 2.10 1.34 0.43
6206 2.27 0.91 0.33 7232 8.31 3.82 0.34 8021 2.01 1.21 0.42
6213 1.05 0.48 0.34 7309F 13.65 5.41 0.28 8031 1.80 1.09 0.41
6214 1.40 0.56 0.33 7313F 5.85 2.31 0.28 8032 1.43 0.91 0.43
6216 3.94 1.57 0.33 7317F 11.47 4.53 0.28 8033 1.59 0.96 0.42
6217 3.60 1.66 0.34 7327F 24.30 9.67 0.28 8037 1.23 0.79 0.44
6229 3.35 1.55 0.34 7333M 3.93 1.56 0.33 8039 0.90 0.58 0.44
6233 2.55 1.17 0.34 7335M 4.37 1.74 0.33 8044 2.02 1.13 0.40
6235 6.73 2.69 0.33 7337M 5.35 2.04 0.33 8045 0.62 0.39 0.43
6236 5.35 2.71 0.35 7350F 19.81 8.76 0.29 8046 1.50 0.91 0.41
6237 1.05 0.53 0.35 7360 3.83 1.94 0.35 8047 0.62 0.39 0.43
6251D 4.71 2.14 0.34 7370 4.50 2.71 0.41 8058 1.70 1.03 0.42
6252D 4.92 1.94 0.33 7382 4.36 2.63 0.41 8072 0.55 0.35 0.44
6260 – 2.14 0.34 7390 3.11 1.87 0.41 8102 1.45 0.92 0.43
6306 4.30 1.98 0.34 7394M 9.59 3.84 0.33 8103 1.92 1.07 0.40
6319 3.34 1.54 0.34 7395M 10.66 4.26 0.33 8105 – 1.34 0.43
6325 2.99 1.38 0.34 7398M 13.05 5.01 0.33 8106 4.02 2.04 0.35
6400 3.92 2.19 0.40 7402 0.20 0.12 0.41 8107 2.60 1.32 0.35
6503 1.87 1.19 0.43 7403 3.63 1.84 0.35 8111 1.34 0.81 0.41
6504 2.51 1.60 0.43 7405N 1.28 0.65 0.35 8116 1.71 1.03 0.41
6702M* 3.24 1.64 0.35 7408 0.56 0.22 0.33 8203 4.50 2.71 0.41
6703M* 4.41 2.16 0.35 7420 5.82 2.32 0.33 8204 3.15 1.60 0.35
6704M* 3.60 1.82 0.35 7421 0.80 0.37 0.34 8209 2.63 1.59 0.41
6801F 6.48 3.04 0.31 7422 2.56 1.02 0.33 8215 2.40 1.22 0.35
6811 6.01 3.05 0.35 7425 3.58 1.43 0.33 8227 3.75 1.50 0.33
6824F 10.66 4.73 0.29 7431N 1.08 0.43 0.33 8232 4.49 2.28 0.35
6826F 6.75 3.16 0.31 7445N 0.69 – – 8233 2.33 1.18 0.35
6834 3.00 1.68 0.40 7453N 0.58 – – 8235 3.16 1.91 0.41
6836 3.75 1.90 0.35 7502 1.82 0.92 0.35 8263 4.88 2.74 0.40
6843F 12.79 5.06 0.28 7515 1.27 0.51 0.33 8264 3.82 1.94 0.35
6845F 6.85 2.71 0.28 7520 2.75 1.66 0.41 8265 6.29 2.89 0.34
6854 4.88 1.95 0.33 7538 3.34 1.34 0.33 8279 4.93 2.28 0.33
6872F 11.39 4.52 0.28 7539 2.14 0.98 0.34 8288 4.75 2.41 0.35
6874F 19.92 7.87 0.28 7540 2.93 1.17 0.33 8291 2.17 1.21 0.40
6882 3.24 1.30 0.33 7580 2.83 1.43 0.35 8292 2.16 1.30 0.41
6884 4.50 1.80 0.33 7590 3.98 2.22 0.40 8293 8.14 4.14 0.35
7016M 4.54 1.81 0.33 7600 4.63 2.34 0.35 8304 3.81 1.93 0.35
7024M 5.04 2.02 0.33 7605 1.72 0.87 0.35 8350 6.13 2.82 0.34
7038M 4.51 1.81 0.33 7610 0.64 0.36 0.40 8380 1.94 1.08 0.40
7046M 7.24 2.89 0.33 7705 4.55 2.54 0.40 8381 1.57 0.88 0.40
7047M 6.17 2.37 0.33 7710 5.14 2.37 0.34 8385 1.43 0.72 0.35
7050M 6.13 2.36 0.33 7711 0.89 0.41 0.33 8392 1.43 0.86 0.42
7090M 5.01 2.01 0.33 7720 4.47 2.27 0.35 8393 1.44 0.87 0.41
7098M 8.04 3.21 0.33 7723 2.59 1.04 0.33 8500 4.50 2.28 0.35
Page 25 of 127
ADVISORY



CLASS
8601 0.44 0.24 0.40 9082 0.64 0.43 0.50
8602 1.43 0.80 0.40 9083 0.77 0.52 0.50
8603 0.13 0.08 0.41 9084 0.85 0.51 0.41
8606 1.53 0.71 0.34 9088 1.69 0.67 0.33
8709F 6.68 2.65 0.28 9089 0.70 0.45 0.44
8719 1.63 0.65 0.33 9093 0.93 0.59 0.44

8720 1.22 0.62 0.35 9101 2.02 1.29 0.43
8721 0.59 0.30 0.35 9102 2.27 1.37 0.41
8723 0.20 0.12 0.41 9110 1.51 0.91 0.42
8725 2.02 1.02 0.35 9150 0.19 0.12 0.43
8726F 3.16 1.48 0.31 9154 1.69 1.02 0.41

8734M 0.72 0.37 0.35 9156 3.55 1.99 0.40
8737M 0.64 0.33 0.35 9170 6.51 2.60 0.33
8738M 0.88 0.43 0.35 9178 4.61 3.11 0.51
8742 0.53 0.27 0.35 9179 16.90 10.75 0.43
8745 2.39 1.34 0.40 9180 4.81 2.44 0.35

8748 0.62 0.35 0.40 9182 1.89 1.14 0.42
8755 0.42 0.21 0.35 9186 12.95 5.99 0.33
8799 0.53 0.32 0.41 9220 3.31 1.85 0.40
8800 2.03 1.37 0.50 9402 4.65 2.36 0.35
8803 0.06 0.03 0.35 9403 10.89 5.01 0.34

8805M 0.24 0.14 0.41 9410 1.85 1.12 0.42
8810 0.18 0.11 0.41 9450 0.40 0.26 0.43
8814M 0.22 0.14 0.41 9452 0.96 0.49 0.35
8815M 0.30 0.17 0.41 9453 2.48 1.49 0.41
8820 0.18 0.10 0.40 9501 2.68 1.50 0.40

8824 2.17 1.39 0.43 9505 2.93 1.64 0.40
8825 1.26 0.85 0.50 9516 1.98 1.00 0.35
8826 1.85 1.12 0.42 9519 3.21 1.63 0.35
8829 1.35 0.82 0.41 9521 3.32 1.68 0.35
8831 0.92 0.55 0.42 9522 1.65 1.00 0.41

8832 0.40 0.24 0.41 9534 3.30 1.52 0.34
8833 0.81 0.49 0.41 9554 5.88 2.71 0.34
8835 1.31 0.79 0.41 9586 0.31 0.21 0.50
8855 0.20 0.12 0.41 9600 1.99 1.27 0.43
8856 0.60 0.36 0.41 9609 0.37 0.19 0.35

8861 0.79 0.48 0.42 9620 1.46 0.82 0.40
8868 0.41 0.27 0.43 9661 1.76 0.89 0.35
8869 1.16 0.74 0.44 9662 – 1.03 0.33
8871 0.10 0.06 0.43
8901 0.20 0.11 0.40

9012 1.10 0.61 0.40
9014 2.03 1.23 0.41
9015 2.38 1.44 0.41
9016 2.21 1.34 0.42
9019 2.69 1.37 0.35

9022 0.64 0.39 0.42
9033 1.50 0.90 0.41
9040 2.71 1.73 0.43
9052 1.63 1.04 0.44
9058 0.84 0.57 0.50

9060 1.07 0.69 0.43
9061 0.83 0.56 0.50
9063 0.63 0.40 0.44
9077F 2.11 1.12 0.38
Page 26 of 127
WORKERS COMPENSATION AND EMPLOYERS LIABILITY NEVADA


FOOTNOTES

D Advisory loss cost for classification already includes the specific disease loading shown in the table below. See
Basic Manual Rule 3-A-7.
Disease Disease Disease

Code No. Loading Symbol Code No. Loading Symbol Code No. Loading Symbol
1164D 0.05 S 1803D 0.41 S 4024D 0.02 S
1165D 0.06 S 3081D 0.07 S 6251D 0.04 S
1624D 0.03 S 3082D 0.09 S 6252D 0.06 S
1710D 0.06 S 3085D 0.10 S
S=Silica
F Advisory loss cost provides for coverage under the United States Longshore and Harbor Workers Compensation
Act and its extensions. Loss cost contains a provision for USL&HW Assessment.
M Risks are subject to Admiralty Law or Federal Employers Liability Act (FELA). However, the published loss cost is for
risks that voluntarily purchase standard workers compensation and employers liability coverage. A provision for the
USL&HW Assessment is included for those classifications under Program II USL Act.
N This code is part of a ratable / non-ratable group shown below. The statistical non-ratable code and corresponding
advisory loss cost are applied in addition to the basic classification when determining premium.
Class Non-Ratable
Code Element Code
4771 0771
7405 7445
7431 7453
P Classification is computed on a per capita basis.
* Class Codes with Specific Footnotes
6702 Loss cost and rating values only appropriate for laying or relaying of tracks or maintenance of way - no work on
elevated railroads. Otherwise, assign appropriate construction or erection code loss cost and elr each x 1.215.
elevated railroads. Otherwise, assign appropriate construction or erection class loss cost x 1.652 and elr x 1.586.
elevated railroads. Otherwise, assign appropriate construction or erection class loss cost and elr each x 1.35.
Page 27 of 127
WORKERS

COMPENSATION AND EMPLOYERS LIABILITY NEVADA


ADVISORY MISCELLANEOUS VALUES

Advisory Loss Elimination Ratios - The following percentages are applicable by deductible amount and
hazard group for total losses on a per claim basis. They do not include a safety factor.
Total Losses
Deductible HAZARD GROUP
Amount A B C D E F G
$100 1.7% 1.3% 1.1% 0.9% 0.6% 0.4% 0.4%
$250 4.0% 3.0% 2.5% 2.1% 1.4% 1.0% 0.8%
$500 6.9% 5.3% 4.5% 3.8% 2.5% 1.8% 1.5%
$1,000 10.9% 8.7% 7.3% 6.1% 4.1% 3.0% 2.6%
$1,500 13.6% 11.1% 9.3% 7.8% 5.4% 4.0% 3.4%
$2,000 15.6% 13.0% 11.0% 9.2% 6.4% 4.8% 4.1%
$2,500 17.4% 14.5% 12.3% 10.3% 7.4% 5.5% 4.7%
$5,000 23.6% 20.1% 17.3% 14.5% 10.9% 8.4% 7.1%
$10,000 31.8% 27.4% 24.1% 20.4% 16.0% 12.7% 10.6%
$15,000 37.9% 32.9% 29.2% 25.0% 20.0% 16.2% 13.6%
$20,000 42.6% 37.3% 33.3% 28.7% 23.4% 19.2% 16.1%
Basis of premium applicable in accordance with Basic Manual footnote instructions for
Code 7370 --"Taxicab Co.":
Employee operated vehicle………………………………………………………………………………… $36,000
Leased or rented vehicle…………………………………………………………………………………… $36,000
Catastrophe (other than Certified Acts of Terrorism) - (Advisory Loss Cost)………………………………… 0.01
Maximum Payroll applicable to officers of a private, nonprofit and quasi-public corporation and managers
of a limited-liability company (NRS 616B.624)
Receiving compensation. Deemed per year…………………………………………………………… $36,000
Not receiving compensation. Deemed per year………………………………………………………… $6,000
Minimum Payroll applicable to officers of a private, nonprofit and quasi-public corporation and managers
Receiving compensation. Deemed per year…………………………………………………………… $6,000
Not receiving compensation. Deemed per month……………………………………………………… $500
Premium Determination for Partners and Sole Proprietors (NRS 616B.659)

Deemed wage per month…………………………………………………………………………………… $300
Elective wage per month in accordance with NRS 616B.659………………………………………… $1,800
Premium Determination for Partners and Sole Proprietors (NRS 616A.210)

Licensed as subcontractors and working as a subcontractor under the direction of the
principal contractor. Deemed wage per month………………………………………………………… $500
Terrorism - (Advisory Loss Cost) ….…………………………………………………………………………………… 0.040
United States Longshore and Harbor Workers' Compensation Coverage Percentage applicable
only in connection with Basic Manual Rule 3-A-4……………………………………………….…………….……… 32%
(Multiply a Non-F classification loss cost by a factor of 1.32 to adjust for differences in benefits and loss-
based expenses. This factor is the product of the adjustment for differences in benefits (1.25) and the
adjustment for differences in loss-based expenses (1.053).)
Page 28 of 127
WORKERS



ADVISORY MISCELLANEOUS VALUES (cont.)

Experience Rating Eligibility
A risk qualifies for experience rating on an intrastate basis when it meets the premium eligibility requirements for the state
in which it operates. The eligibility amount varies by rating effective date. The Experience Rating Plan Manual should
be referenced for the latest approved eligibility amounts by state and by effective date.
Page 29 of 127

Nevada

Voluntary

Proposed Assigned Risk Rates and Rating Values
The following pages include proposed assigned risk rates and rating values:
 Assigned risk rates, minimum premium, expected loss rates, and d-ratios by class code,
along with associated footnotes
o The “X” footnote denoting a state special classification phraseology will no longer be
shown on the following pages. Refer to the special classifications section of the
Basic Manual for any state specific classification phraseology.
 Miscellaneous values, such as:
o Maximum and minimum weekly payroll applicable for select class codes
o Premium determination for Partners and Sole Proprietors
o Premium reduction percentages
o Catastrophe and terrorism assigned risk rates
o United States Longshore and Harbor Workers’ Compensation Coverage Percentage
Page 30 of 127

WORKERS

APPLICABLE TO ASSIGNED RISK POLICIES ONLY
CLASS MIN D CLASS MIN D CLASS MIN D

CODE RATE PREM ELR RATIO CODE RATE PREM ELR RATIO CODE RATE PREM ELR RATIO
0005 4.14 988 1.65 0.41 2041 3.36 832 1.42 0.43 2735 5.06 1100 2.13 0.43
0008 2.79 718 1.03 0.40 2065 2.36 632 0.94 0.41 2759 8.26 1100 3.48 0.43
0016 6.15 1100 2.06 0.35 2070 5.48 1100 2.18 0.41 2790 3.94 948 1.66 0.44
0034 3.85 930 1.53 0.41 2081 3.77 914 1.50 0.41 2797 4.71 1100 1.88 0.41
0035 2.45 650 1.03 0.43 2089 4.55 1070 1.81 0.41 2799 6.41 1100 2.37 0.40
0036 5.44 1100 2.16 0.41 2095 4.88 1100 1.94 0.41 2802 7.85 1100 2.90 0.40
0037 3.95 950 1.46 0.40 2105 5.03 1100 2.12 0.43 2835 3.06 772 1.36 0.50
0042 5.89 1100 2.17 0.40 2110 2.77 714 1.17 0.43 2836 3.65 890 1.62 0.50
0050 6.17 1100 2.45 0.41 2111 2.95 750 1.25 0.43 2841 4.67 1094 1.97 0.43
0079 3.98 956 1.34 0.35 2112 5.35 1100 2.25 0.43 2881 3.41 842 1.51 0.50
0083 9.59 1100 3.82 0.41 2114 3.67 894 1.55 0.43 2883 5.12 1100 2.04 0.41
0106 20.42 1100 6.22 0.34 2121 1.70 500 0.67 0.41 2913 – – 2.04 0.41
0113 4.48 1056 1.79 0.41 2130 2.51 662 1.00 0.41 2915 4.47 1054 1.65 0.40
0169 7.74 1100 3.09 0.42 2131 2.48 656 0.99 0.41 2916 4.11 982 1.25 0.34
0170 2.97 754 1.18 0.41 2143 3.56 872 1.50 0.43 2923 2.58 676 1.08 0.43
0251 5.39 1100 2.15 0.41 2157 5.80 1100 2.31 0.41 2942 – – 0.52 0.50
0400 – – 1.07 0.40 2172 2.05 570 0.75 0.39 2960 5.89 1100 2.34 0.41
0401 12.18 1100 3.71 0.34 2174 3.50 860 1.48 0.43 3004 2.18 596 0.73 0.35
0771N 0.68 – – – 2211 7.50 1100 2.51 0.35 3018 5.18 1100 1.74 0.35
0908P 215.00 375 85.35 0.41 2220 2.45 650 0.98 0.41 3022 4.73 1100 1.99 0.43
0913P 533.00 693 212.32 0.41 2286 – – 0.98 0.41 3027 3.70 900 1.24 0.35
0917 3.82 924 1.61 0.43 2288 4.59 1078 1.93 0.43 3028 3.94 948 1.57 0.41
1005 11.33 1100 2.98 0.33 2300 – – 1.10 0.41 3030 7.11 1100 2.38 0.35
1016 19.80 1100 5.21 0.33 2302 2.15 590 0.86 0.41 3040 6.92 1100 2.32 0.35
1164D 5.46 1100 1.42 0.33 2305 2.83 726 1.04 0.40 3041 4.71 1100 1.87 0.41
1165D 5.39 1100 1.61 0.34 2361 2.36 632 0.94 0.42 3042 5.48 1100 2.02 0.40
1320 3.39 838 1.03 0.34 2362 2.56 672 1.02 0.41 3064 5.23 1100 2.08 0.41
1322 9.12 1100 2.77 0.34 2380 2.70 700 1.07 0.41 3076 4.00 960 1.59 0.41
1430 5.41 1100 1.81 0.35 2386 – – 1.10 0.41 3081D 6.37 1100 2.10 0.35
1438 6.68 1100 2.03 0.34 2388 1.62 484 0.69 0.43 3082D 5.18 1100 1.69 0.35
1452 3.62 884 1.21 0.35 2402 3.35 830 1.12 0.35 3085D 8.30 1100 2.73 0.35
1463 15.50 1100 4.72 0.33 2413 3.03 766 1.21 0.41 3110 5.33 1100 2.12 0.41
1472 4.05 970 1.23 0.34 2416 2.47 654 0.98 0.41 3111 2.67 694 1.06 0.41
1624D 5.81 1100 1.75 0.34 2417 1.53 466 0.61 0.41 3113 2.08 576 0.83 0.41
1642 4.55 1070 1.52 0.35 2501 2.76 712 1.10 0.41 3114 3.33 826 1.33 0.41
1654 7.32 1100 2.45 0.35 2503 2.55 670 1.07 0.43 3118 2.26 612 0.95 0.43
1655 – – 1.52 0.35 2534 – – 1.10 0.41 3119 1.14 388 0.50 0.50
1699 4.55 1070 1.53 0.35 2570 4.62 1084 1.94 0.43 3122 2.59 678 1.09 0.43
1701 4.29 1018 1.43 0.35 2585 4.17 994 1.75 0.43 3126 1.92 544 0.77 0.41
1710D 7.09 1100 2.34 0.35 2586 3.70 900 1.47 0.41 3131 2.23 606 0.89 0.41
1741 – – 1.43 0.35 2587 3.97 954 1.67 0.43 3132 3.44 848 1.37 0.41
1747 2.73 706 0.91 0.35 2589 2.62 684 1.05 0.41 3145 2.65 690 1.06 0.41
1748 6.45 1100 2.16 0.35 2600 5.74 1100 2.41 0.43 3146 3.08 776 1.23 0.41
1803D 8.68 1100 2.45 0.34 2623 8.95 1100 3.31 0.40 3169 3.51 862 1.40 0.41
1852 – – 0.63 0.33 2651 2.44 648 1.03 0.43 3175 – – 1.40 0.41
1853 – – 1.43 0.35 2660 3.14 788 1.32 0.43 3179 2.88 736 1.21 0.43
1860 – – 1.27 0.41 2670 – – 1.46 0.43 3180 2.77 714 1.17 0.43
1924 3.15 790 1.32 0.43 2683 2.76 712 1.10 0.41 3188 2.44 648 1.03 0.43
1925 4.59 1078 1.70 0.40 2688 3.47 854 1.46 0.43 3220 2.41 642 0.96 0.41
2002 3.77 914 1.59 0.43 2702 29.35 1100 7.74 0.33 3223 – – 1.17 0.43
2003 3.95 950 1.58 0.41 2709 15.29 1100 5.12 0.35 3224 4.47 1054 1.88 0.43
2014 6.18 1100 2.07 0.35 2710 12.62 1100 3.84 0.34 3227 3.50 860 1.48 0.43
2016 3.24 808 1.37 0.43 2714 5.79 1100 2.44 0.43 3240 3.35 830 1.34 0.41
2021 3.92 944 1.45 0.40 2727 8.79 1100 2.94 0.35 3241 3.21 802 1.28 0.41
2039 3.06 772 1.29 0.43 2731 4.94 1100 1.66 0.35 3255 2.95 750 1.32 0.50
Page 31 of 127

WORKERS


3257 3.35 830 1.34 0.41 4061 – – 1.27 0.41 4692 0.83 326 0.35 0.43
3270 3.44 848 1.37 0.41 4062 3.20 800 1.27 0.41 4693 1.12 384 0.45 0.41
3300 5.33 1100 2.13 0.42 4101 6.70 1100 2.46 0.39 4703 2.44 648 0.97 0.41
3303 2.98 756 1.26 0.43 4109 0.56 272 0.24 0.43 4717 2.79 718 1.24 0.50
3307 3.82 924 1.52 0.41 4110 1.05 370 0.42 0.41 4720 2.91 742 1.16 0.41
3315 4.82 1100 2.03 0.43 4111 2.17 594 0.91 0.43 4740 3.42 844 1.15 0.35
3334 3.20 800 1.27 0.41 4113 – – 0.91 0.43 4741 3.23 806 1.29 0.41
3336 3.29 818 1.10 0.35 4114 3.59 878 1.43 0.41 4751 2.55 670 0.85 0.35
3365 4.01 962 1.34 0.35 4130 5.32 1100 2.12 0.42 4771N 3.85 1066 1.01 0.33
3372 3.77 914 1.39 0.40 4131 6.20 1100 2.61 0.43 4777 4.23 1006 1.12 0.33
3373 4.95 1100 1.97 0.41 4133 2.98 756 1.26 0.43 4825 1.33 426 0.45 0.35
3383 2.36 632 1.00 0.43 4149 0.83 326 0.37 0.50 4828 2.91 742 1.07 0.40
3385 1.15 390 0.48 0.43 4206 3.80 920 1.52 0.41 4829 2.47 654 0.75 0.33
3400 4.88 1100 1.80 0.40 4207 2.55 670 0.85 0.35 4902 3.18 796 1.34 0.43
3507 3.42 844 1.36 0.41 4239 2.76 712 0.92 0.35 4923 1.82 524 0.72 0.42
3515 2.98 756 1.19 0.41 4240 4.18 996 1.76 0.43 5020 6.09 1100 2.04 0.35
3548 1.30 420 0.52 0.41 4243 2.64 688 1.05 0.41 5022 7.97 1100 2.42 0.34
3559 3.36 832 1.34 0.41 4244 4.32 1024 1.72 0.42 5037 14.21 1100 3.75 0.33
3574 1.61 482 0.68 0.43 4250 2.20 600 0.88 0.41 5040 8.44 1100 2.23 0.33
3581 1.36 432 0.58 0.43 4251 3.36 832 1.34 0.41 5057 5.88 1100 1.55 0.33
3612 2.33 626 0.86 0.40 4263 3.71 902 1.48 0.41 5059 20.30 1100 5.36 0.33
3620 5.30 1100 1.77 0.35 4273 3.30 820 1.31 0.41 5069 – – 5.36 0.33
3629 1.85 530 0.78 0.43 4279 3.20 800 1.27 0.41 5102 7.24 1100 2.20 0.34
3632 3.12 784 1.15 0.40 4282 – – 1.27 0.41 5146 6.06 1100 2.03 0.35
3634 2.12 584 0.89 0.43 4283 1.71 502 0.68 0.41 5160 2.33 626 0.71 0.34
3635 2.92 744 1.17 0.41 4299 2.33 626 0.98 0.43 5183 5.17 1100 1.73 0.35
3638 2.58 676 1.08 0.43 4304 4.73 1100 1.74 0.40 5188 3.91 942 1.31 0.35
3642 1.71 502 0.68 0.41 4307 2.06 572 0.92 0.50 5190 3.06 772 1.02 0.35
3643 2.27 614 0.90 0.41 4351 1.14 388 0.45 0.41 5191 1.55 470 0.62 0.41
3647 3.15 790 1.16 0.40 4352 3.94 948 1.67 0.44 5192 3.33 826 1.33 0.41
3648 2.32 624 0.98 0.43 4360 – – 0.19 0.35 5213 8.09 1100 2.46 0.34
3681 1.00 360 0.42 0.43 4361 1.39 438 0.58 0.43 5215 5.67 1100 2.09 0.40
3685 1.21 402 0.51 0.43 4410 3.64 888 1.45 0.41 5221 5.83 1100 1.95 0.35
3719 1.21 402 0.32 0.33 4420 4.73 1100 1.43 0.34 5222 10.82 1100 3.29 0.34
3724 4.11 982 1.25 0.34 4431 1.83 526 0.81 0.50 5223 5.45 1100 1.82 0.35
3726 3.61 882 0.95 0.33 4432 1.17 394 0.52 0.50 5348 4.86 1100 1.63 0.35
3803 3.14 788 1.25 0.41 4439 – – 1.06 0.41 5402 6.11 1100 2.57 0.43
3807 3.18 796 1.34 0.43 4452 3.64 888 1.45 0.41 5403 7.15 1100 2.18 0.34
3808 3.86 932 1.42 0.40 4459 3.73 906 1.48 0.41 5437 6.89 1100 2.30 0.35
3821 5.58 1100 2.06 0.40 4470 3.21 802 1.28 0.41 5443 4.29 1018 1.71 0.41
3822 4.30 1020 1.59 0.40 4484 3.67 894 1.46 0.41 5445 6.23 1100 1.89 0.34
3824 5.65 1100 2.09 0.40 4493 4.47 1054 1.78 0.41 5462 7.85 1100 2.63 0.35
3826 1.41 442 0.56 0.41 4511 0.92 344 0.34 0.40 5472 6.47 1100 1.70 0.33
3827 2.64 688 0.97 0.40 4557 2.86 732 1.20 0.43 5473 8.86 1100 2.34 0.33
3830 1.33 426 0.49 0.40 4558 2.65 690 1.06 0.41 5474 6.11 1100 1.86 0.34
3851 2.85 730 1.20 0.43 4568 2.74 708 0.92 0.35 5478 4.70 1100 1.57 0.35
3865 2.44 648 1.08 0.50 4581 1.20 400 0.37 0.33 5479 6.83 1100 2.52 0.40
3881 4.62 1084 1.84 0.41 4583 5.88 1100 1.79 0.34 5480 7.08 1100 2.15 0.34
4000 6.56 1100 1.99 0.34 4611 1.42 444 0.60 0.43 5491 2.26 612 0.69 0.34
4021 5.18 1100 1.73 0.35 4635 3.59 878 0.95 0.33 5506 7.70 1100 2.03 0.33
4024D 5.20 1100 1.73 0.35 4653 2.12 584 0.89 0.43 5507 5.73 1100 1.74 0.34
4034 6.79 1100 2.27 0.35 4665 9.95 1100 3.33 0.35 5508 – – 1.74 0.34
4036 2.74 708 0.92 0.35 4670 – – 2.26 0.41 5535 8.14 1100 2.72 0.35
4038 2.80 720 1.25 0.50 4683 5.68 1100 2.26 0.41 5537 5.98 1100 2.00 0.35
4053 – – 1.27 0.41 4686 2.77 714 0.93 0.35 5551 10.94 1100 2.89 0.33
Page 32 of 127

WORKERS


5606 1.67 494 0.51 0.34 7099M 14.91 1100 3.77 0.33 7724 – – 2.27 0.35
5610 4.91 1100 1.96 0.41 7133 4.64 1088 1.41 0.34 7726 0.45 250 0.12 0.33
5645 12.01 1100 3.66 0.34 7151M 5.64 1100 1.71 0.34 7855 4.05 970 1.36 0.35
5703 15.65 1100 5.24 0.35 7152M 7.67 1100 2.24 0.34 8001 2.68 696 1.13 0.43
5705 15.35 1100 5.14 0.35 7153M 6.26 1100 1.90 0.34 8002 2.45 650 0.98 0.42
5951 0.52 264 0.21 0.44 7219 9.33 1100 2.84 0.34 8006 2.51 662 1.00 0.41
6003 8.45 1100 2.82 0.35 7222 12.82 1100 4.27 0.35 8008 1.08 376 0.46 0.43
6005 4.55 1070 1.52 0.35 7225 8.33 1100 2.79 0.35 8010 2.00 560 0.84 0.43
6017 – – 2.46 0.34 7228 – – 2.84 0.34 8013 0.47 254 0.19 0.41
6018 3.32 824 1.11 0.35 7229 – – 2.84 0.34 8015 0.98 356 0.39 0.41
6045 5.53 1100 1.85 0.35 7230 12.03 1100 4.44 0.40 8017 1.53 466 0.65 0.43
6204 6.58 1100 2.00 0.34 7231 10.61 1100 3.91 0.40 8018 3.18 796 1.34 0.43
6206 3.44 848 0.91 0.33 7232 12.59 1100 3.82 0.34 8021 3.05 770 1.21 0.42
6213 1.59 478 0.48 0.34 7309F 20.68 1100 5.41 0.28 8031 2.73 706 1.09 0.41
6214 2.12 584 0.56 0.33 7313F 8.86 1100 2.31 0.28 8032 2.17 594 0.91 0.43
6216 5.97 1100 1.57 0.33 7317F 17.38 1100 4.53 0.28 8033 2.41 642 0.96 0.42
6217 5.45 1100 1.66 0.34 7327F 36.81 1100 9.67 0.28 8037 1.86 532 0.79 0.44
6229 5.08 1100 1.55 0.34 7333M 5.95 1100 1.56 0.33 8039 1.36 432 0.58 0.44
6233 3.86 932 1.17 0.34 7335M 6.62 1100 1.74 0.33 8044 3.06 772 1.13 0.40
6235 10.20 1100 2.69 0.33 7337M 8.11 1100 2.04 0.33 8045 0.94 348 0.39 0.43
6236 8.11 1100 2.71 0.35 7350F 30.01 1100 8.76 0.29 8046 2.27 614 0.91 0.41
6237 1.59 478 0.53 0.35 7360 5.80 1100 1.94 0.35 8047 0.94 348 0.39 0.43
6251D 7.14 1100 2.14 0.34 7370 6.82 1100 2.71 0.41 8058 2.58 676 1.03 0.42
6252D 7.45 1100 1.94 0.33 7382 6.61 1100 2.63 0.41 8072 0.83 326 0.35 0.44
6260 – – 2.14 0.34 7390 4.71 1100 1.87 0.41 8102 2.20 600 0.92 0.43
6306 6.51 1100 1.98 0.34 7394M 14.53 1100 3.84 0.33 8103 2.91 742 1.07 0.40
6319 5.06 1100 1.54 0.34 7395M 16.15 1100 4.26 0.33 8105 – – 1.34 0.43
6325 4.53 1066 1.38 0.34 7398M 19.77 1100 5.01 0.33 8106 6.09 1100 2.04 0.35
6400 5.94 1100 2.19 0.40 7402 0.30 220 0.12 0.41 8107 3.94 948 1.32 0.35
6503 2.83 726 1.19 0.43 7403 5.50 1100 1.84 0.35 8111 2.03 566 0.81 0.41
6504 3.80 920 1.60 0.43 7405N 1.94 758 0.65 0.35 8116 2.59 678 1.03 0.41
6702M* 4.91 1100 1.64 0.35 7408 0.85 330 0.22 0.33 8203 6.82 1100 2.71 0.41
6703M* 6.68 1100 2.16 0.35 7420 8.82 1100 2.32 0.33 8204 4.77 1100 1.60 0.35
6704M* 5.45 1100 1.82 0.35 7421 1.21 402 0.37 0.34 8209 3.98 956 1.59 0.41
6801F 9.82 1100 3.04 0.31 7422 3.88 936 1.02 0.33 8215 3.64 888 1.22 0.35
6811 9.11 1100 3.05 0.35 7425 5.42 1100 1.43 0.33 8227 5.68 1100 1.50 0.33
6824F 16.15 1100 4.73 0.29 7431N 1.64 664 0.43 0.33 8232 6.80 1100 2.28 0.35
6826F 10.23 1100 3.16 0.31 7445N 1.05 – – – 8233 3.53 866 1.18 0.35
6834 4.55 1070 1.68 0.40 7453N 0.88 – – – 8235 4.79 1100 1.91 0.41
6836 5.68 1100 1.90 0.35 7502 2.76 712 0.92 0.35 8263 7.39 1100 2.74 0.40
6843F 19.38 1100 5.06 0.28 7515 1.92 544 0.51 0.33 8264 5.79 1100 1.94 0.35
6845F 10.38 1100 2.71 0.28 7520 4.17 994 1.66 0.41 8265 9.53 1100 2.89 0.34
6854 7.39 1100 1.95 0.33 7538 5.06 1100 1.34 0.33 8279 7.47 1100 2.28 0.33
6872F 17.26 1100 4.52 0.28 7539 3.24 808 0.98 0.34 8288 7.20 1100 2.41 0.35
6874F 30.18 1100 7.87 0.28 7540 4.44 1048 1.17 0.33 8291 3.29 818 1.21 0.40
6882 4.91 1100 1.30 0.33 7580 4.29 1018 1.43 0.35 8292 3.27 814 1.30 0.41
6884 6.82 1100 1.80 0.33 7590 6.03 1100 2.22 0.40 8293 12.33 1100 4.14 0.35
7016M 6.88 1100 1.81 0.33 7600 7.01 1100 2.34 0.35 8304 5.77 1100 1.93 0.35
7024M 7.64 1100 2.02 0.33 7605 2.61 682 0.87 0.35 8350 9.29 1100 2.82 0.34
7038M 6.83 1100 1.81 0.33 7610 0.97 354 0.36 0.40 8380 2.94 748 1.08 0.40
7046M 10.97 1100 2.89 0.33 7705 6.89 1100 2.54 0.40 8381 2.38 636 0.88 0.40
7047M 9.35 1100 2.37 0.33 7710 7.79 1100 2.37 0.34 8385 2.17 594 0.72 0.35
7050M 9.29 1100 2.36 0.33 7711 1.35 430 0.41 0.33 8392 2.17 594 0.86 0.42
7090M 7.59 1100 2.01 0.33 7720 6.77 1100 2.27 0.35 8393 2.18 596 0.87 0.41
7098M 12.18 1100 3.21 0.33 7723 3.92 944 1.04 0.33 8500 6.82 1100 2.28 0.35
Page 33 of 127

WORKERS


8601 0.67 294 0.24 0.40 9082 0.97 354 0.43 0.50
8602 2.17 594 0.80 0.40 9083 1.17 394 0.52 0.50
8603 0.20 200 0.08 0.41 9084 1.29 418 0.51 0.41
8606 2.32 624 0.71 0.34 9088 2.56 672 0.67 0.33
8709F 10.12 1100 2.65 0.28 9089 1.06 372 0.45 0.44
8719 2.47 654 0.65 0.33 9093 1.41 442 0.59 0.44
8720 1.85 530 0.62 0.35 9101 3.06 772 1.29 0.43
8721 0.89 338 0.30 0.35 9102 3.44 848 1.37 0.41
8723 0.30 220 0.12 0.41 9110 2.29 618 0.91 0.42
8725 3.06 772 1.02 0.35 9150 0.29 218 0.12 0.43
8726F 4.79 1100 1.48 0.31 9154 2.56 672 1.02 0.41
8734M 1.09 378 0.37 0.35 9156 5.38 1100 1.99 0.40
8737M 0.97 354 0.33 0.35 9170 9.86 1100 2.60 0.33
8738M 1.33 426 0.43 0.35 9178 6.98 1100 3.11 0.51
8742 0.80 320 0.27 0.35 9179 25.60 1100 10.75 0.43
8745 3.62 884 1.34 0.40 9180 7.29 1100 2.44 0.35
8748 0.94 348 0.35 0.40 9182 2.86 732 1.14 0.42
8755 0.64 288 0.21 0.35 9186 19.62 1100 5.99 0.33
8799 0.80 320 0.32 0.41 9220 5.01 1100 1.85 0.40
8800 3.08 776 1.37 0.50 9402 7.04 1100 2.36 0.35
8803 0.09 178 0.03 0.35 9403 16.50 1100 5.01 0.34
8805M 0.36 232 0.14 0.41 9410 2.80 720 1.12 0.42
8810 0.27 214 0.11 0.41 9450 0.61 282 0.26 0.43
8814M 0.33 226 0.14 0.41 9452 1.45 450 0.49 0.35
8815M 0.45 250 0.17 0.41 9453 3.76 912 1.49 0.41
8820 0.27 214 0.10 0.40 9501 4.06 972 1.50 0.40
8824 3.29 818 1.39 0.43 9505 4.44 1048 1.64 0.40
8825 1.91 542 0.85 0.50 9516 3.00 760 1.00 0.35
8826 2.80 720 1.12 0.42 9519 4.86 1100 1.63 0.35
8829 2.05 570 0.82 0.41 9521 5.03 1100 1.68 0.35
8831 1.39 438 0.55 0.42 9522 2.50 660 1.00 0.41
8832 0.61 282 0.24 0.41 9534 5.00 1100 1.52 0.34
8833 1.23 406 0.49 0.41 9554 8.91 1100 2.71 0.34
8835 1.98 556 0.79 0.41 9586 0.47 254 0.21 0.50
8855 0.30 220 0.12 0.41 9600 3.01 762 1.27 0.43
8856 0.91 342 0.36 0.41 9609 0.56 272 0.19 0.35
8861 1.20 400 0.48 0.42 9620 2.21 602 0.82 0.40
8868 0.62 284 0.27 0.43 9661 2.67 694 0.89 0.35
8869 1.76 512 0.74 0.44 9662 – – 1.03 0.33
8871 0.15 190 0.06 0.43
8901 0.30 220 0.11 0.40

9012 1.67 494 0.61 0.40
9014 3.08 776 1.23 0.41
9015 3.61 882 1.44 0.41
9016 3.35 830 1.34 0.42
9019 4.08 976 1.37 0.35

9022 0.97 354 0.39 0.42
9033 2.27 614 0.90 0.41
9040 4.11 982 1.73 0.43
9052 2.47 654 1.04 0.44
9058 1.27 414 0.57 0.50

9060 1.62 484 0.69 0.43
9061 1.26 412 0.56 0.50
9063 0.95 350 0.40 0.44
9077F 3.20 800 1.12 0.38
Page 34 of 127

FOOTNOTES

D Rate for classification already includes the specific disease loading shown in the table below. See
Basic Manual Rule 3-A-7.
Disease Disease Disease

Code No. Loading Symbol Code No. Loading Symbol Code No. Loading Symbol
1164D 0.08 S 1803D 0.62 S 4024D 0.03 S
1165D 0.09 S 3081D 0.11 S 6251D 0.06 S
1624D 0.05 S 3082D 0.14 S 6252D 0.09 S
1710D 0.09 S 3085D 0.15 S
S=Silica
F Rate provides for coverage under the United States Longshore and Harbor Workers Compensation Act and its
extensions. Rate includes a provision for USL&HW Assessment.
M Risks are subject to Admiralty Law or Federal Employers Liability Act (FELA). However, the published rate is for risks
that voluntarily purchase standard workers compensation and employers liability coverage. A provision for the USL&HW
Assessment is included for those classifications under Program II USL Act. The listed codes of 6702, 6703, 6704, 7151,
7152, 7153, 8734, 8737, 8738, 8805, 8814, and 8815 under the Federal Employers’ Liability Act (FELA) for employees
of interstate railroads are not applicable in the residual market.
N This code is part of a ratable / non-ratable group shown below. The statistical non-ratable code and corresponding
rate are applied in addition to the basic classification when determining premium.
Class Non-Ratable
Code Element Code
4771 0771
7405 7445
7431 7453
P Classification is computed on a per capita basis.
* Class Codes with Specific Footnotes
6702 Rate and rating values only appropriate for laying or relaying of tracks or maintenance of way - no work on
elevated railroads. Otherwise, assign appropriate construction or erection code rate and elr each x 1.215.
elevated railroads. Otherwise, assign appropriate construction or erection class rate x 1.652 and elr x 1.586.
elevated railroads. Otherwise, assign appropriate construction or erection class rate and elr each x 1.35.
Page 35 of 127

MISCELLANEOUS VALUES
Basis of premium applicable in accordance with Basic Manual footnote instructions for Code 7370 --
"Taxicab Co.":
Employee operated vehicle………………………………………………………………………………… $36,000
Leased or rented vehicle…………………………………………………………………………………… $36,000
Catastrophe (other than Certified Acts of Terrorism) - (Assigned Risk)……………………………………… 0.01
Expense Constant applicable in accordance with Basic Manual Rule 3-A-11………………………………… $160
Loss Sensitive Rating Plan (LSRP) - The factors which are used in the calculation of the LSRP
are as follows:
Basic Premium Factor 0.40 Loss Development Factors

Minimum Premium Factor 0.75 1st Adjustment 0.25
Maximum Premium Factor 1.75 2nd Adjustment 0.19
Loss Conversion Factor 1.18 3rd Adjustment 0.16
Tax Multiplier 1.045 4th Adjustment 0.15
Maximum Minimum Premium………………………………………………………………………………………… $1,100
Maximum Payroll applicable to officers of a private, nonprofit and quasi-public corporation and managers
Receiving compensation. Deemed per year……………………………………………………………. $36,000
Not receiving compensation. Deemed per year………………………………………………………… $6,000
Minimum Payroll applicable to officers of a private, nonprofit and quasi-public corporation and managers
Receiving compensation. Deemed per year……………………………………………………………. $6,000
Not receiving compensation. Deemed per month……………………………………………………… $500
Minimum Premium Multiplier………………………………………………………………………………………… 200
Premium Determination for Partners and Sole Proprietors (NRS 616B.659)

Deemed wage per month…………………………………………………………………………… $300
Elective wage per month in accordance with NRS 616B.659……………………………………… $1,800
Premium Determination for Partners and Sole Proprietors (NRS 616A.210)

Licensed as subcontractors and working as a subcontractor under the direction of the
principal contractor. Deemed wage per month…………………………………………………………… $500
Premium Reduction Percentages - The following percentages are applicable by deductible amount and
hazard group for total losses on a per claim basis:
Total Losses
Deductible HAZARD GROUP
Amount A B C D E F G
$100 1.3% 1.0% 0.8% 0.7% 0.4% 0.3% 0.3%
$250 3.0% 2.3% 1.9% 1.6% 1.0% 0.7% 0.6%
$500 5.2% 4.0% 3.4% 2.9% 1.9% 1.3% 1.2%
$1,000 8.2% 6.6% 5.5% 4.6% 3.1% 2.3% 2.0%
$1,500 10.3% 8.4% 7.1% 5.9% 4.1% 3.0% 2.6%
$2,000 11.8% 9.8% 8.3% 6.9% 4.9% 3.6% 3.1%
$2,500 13.1% 11.0% 9.3% 7.8% 5.6% 4.2% 3.6%
$5,000 17.9% 15.2% 13.1% 11.0% 8.2% 6.4% 5.3%
$10,000 24.1% 20.8% 18.2% 15.5% 12.1% 9.7% 8.1%
$15,000 28.7% 24.9% 22.1% 18.9% 15.1% 12.3% 10.3%
$20,000 32.3% 28.2% 25.2% 21.8% 17.7% 14.6% 12.2%
Page 36 of 127

MISCELLANEOUS VALUES (cont.)
Terrorism - (Assigned Risk)………………………………..……………….…………..……………………………… 0.05
United States Longshore and Harbor Workers' Compensation Coverage Percentage applicable
only in connection with Basic Manual Rule 3-A-4….…..….…..................................................................…… 32%
(Multiply a Non-F classification rate by a factor of 1.32 to adjust for differences in benefits and loss-based
expenses. This factor is the product of the adjustment for differences in benefits (1.25) and the adjustment
for differences in loss-based expenses (1.053).)
Experience Rating Eligibility
A risk qualifies for experience rating on an intrastate basis when it meets the premium eligibility requirements for the state in
which it operates. The eligibility amount varies by rating effective date. The Experience Rating Plan Manual should be
referenced for the latest approved eligibility amounts by state and by effective date.
Page 37 of 127

Nevada

Voluntary

Proposed Values for Inclusion in the Experience Rating Plan Manual
The following pages include proposed values for the Experience Rating Plan Manual:
 Table of Weighting Values

 Table of Ballast Values
 Experience rating premium eligibility amounts
Page 38 of 127

EXPERIENCE RATING PLAN MANUAL NEVADA

TABLE OF WEIGHTING VALUES
APPLICABLE TO ALL POLICIES
Experience Rating Program - ERA
Expected Weighting Expected Weighting
Losses Values Losses Values
0 -- 1,769 0.04 997,852 -- 1,052,893 0.44

1,770 -- 7,153 0.05 1,052,894 -- 1,111,121 0.45
7,154 -- 12,652 0.06 1,111,122 -- 1,172,821 0.46
12,653 -- 18,270 0.07 1,172,822 -- 1,238,314 0.47
18,271 -- 24,010 0.08 1,238,315 -- 1,307,962 0.48
24,011 -- 40,160 0.09 1,307,963 -- 1,382,173 0.49

40,161 -- 59,780 0.10 1,382,174 -- 1,461,413 0.50
59,781 -- 77,231 0.11 1,461,414 -- 1,546,209 0.51
77,232 -- 94,223 0.12 1,546,210 -- 1,637,169 0.52
94,224 -- 111,218 0.13 1,637,170 -- 1,734,991 0.53
111,219 -- 128,422 0.14 1,734,992 -- 1,840,483 0.54

128,423 -- 145,951 0.15 1,840,484 -- 1,954,582 0.55
145,952 -- 163,886 0.16 1,954,583 -- 2,078,390 0.56
163,887 -- 182,285 0.17 2,078,391 -- 2,213,199 0.57
182,286 -- 201,198 0.18 2,213,200 -- 2,360,546 0.58
201,199 -- 220,670 0.19 2,360,547 -- 2,522,266 0.59

220,671 -- 240,743 0.20 2,522,267 -- 2,700,569 0.60
240,744 -- 261,458 0.21 2,700,570 -- 2,898,146 0.61
261,459 -- 282,857 0.22 2,898,147 -- 3,118,300 0.62
282,858 -- 304,983 0.23 3,118,301 -- 3,365,136 0.63
304,984 -- 327,879 0.24 3,365,137 -- 3,643,819 0.64

327,880 -- 351,593 0.25 3,643,820 -- 3,960,939 0.65
351,594 -- 376,173 0.26 3,960,940 -- 4,325,036 0.66
376,174 -- 401,672 0.27 4,325,037 -- 4,747,385 0.67
401,673 -- 428,145 0.28 4,747,386 -- 5,243,183 0.68
428,146 -- 455,653 0.29 5,243,184 -- 5,833,416 0.69

455,654 -- 484,260 0.30 5,833,417 -- 6,547,905 0.70
484,261 -- 514,035 0.31 6,547,906 -- 7,430,505 0.71
514,036 -- 545,053 0.32 7,430,506 -- 8,548,461 0.72
545,054 -- 577,397 0.33 8,548,462 -- 10,010,398 0.73
577,398 -- 611,153 0.34 10,010,399 -- 12,003,945 0.74

611,154 -- 646,419 0.35 12,003,946 -- 14,883,506 0.75
646,420 -- 683,298 0.36 14,883,507 -- 19,408,524 0.76
683,299 -- 721,907 0.37 19,408,525 -- 27,553,545 0.77
721,908 -- 762,369 0.38 27,553,546 -- 46,558,579 0.78
762,370 -- 804,824 0.39 46,558,580 -- 141,583,705 0.79

804,825 -- 849,423 0.40 141,583,706 AND OVER 0.80
849,424 -- 896,334 0.41
896,335 -- 945,741 0.42
945,742 -- 997,851 0.43
(a) G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.45
(b) State Per Claim Accident Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $211,000
(c) State Multiple Claim Accident Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $422,000
(d) USL&HW Per Claim Accident Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $665,000
(e) USL&HW Multiple Claim Accident Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,330,000
(f) Employers Liability Accident Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,000
(g) Primary/Excess Loss Split Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,000
(h) USL&HW Act -- Expected Loss Factor -- Non-F Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.25
(Multiply a Non-F classification ELR by the USL&HW Act - Expected Loss Factor of 1.25.)
Page 39 of 127

EXPERIENCE RATING PLAN MANUAL NEVADA

TABLE OF BALLAST VALUES
APPLICABLE TO ALL POLICIES
Experience Rating Plan - ERA
Expected Ballast Expected Ballast Expected Ballast
Losses Values Losses Values Losses Values
0 -- 45,451 21,125 1,458,479 -- 1,500,704 169,000 2,936,800 -- 2,979,043 316,875

45,452 -- 78,225 25,350 1,500,705 -- 1,542,931 173,225 2,979,044 -- 3,021,287 321,100
78,226 -- 115,884 29,575 1,542,932 -- 1,585,160 177,450 3,021,288 -- 3,063,532 325,325
115,885 -- 155,610 33,800 1,585,161 -- 1,627,390 181,675 3,063,533 -- 3,105,776 329,550
155,611 -- 196,304 38,025 1,627,391 -- 1,669,620 185,900 3,105,777 -- 3,148,021 333,775
196,305 -- 237,508 42,250 1,669,621 -- 1,711,852 190,125 3,148,022 -- 3,190,265 338,000

237,509 -- 279,010 46,475 1,711,853 -- 1,754,084 194,350 3,190,266 -- 3,232,510 342,225
279,011 -- 320,700 50,700 1,754,085 -- 1,796,318 198,575 3,232,511 -- 3,274,755 346,450
320,701 -- 362,516 54,925 1,796,319 -- 1,838,552 202,800 3,274,756 -- 3,317,001 350,675
362,517 -- 404,420 59,150 1,838,553 -- 1,880,787 207,025 3,317,002 -- 3,359,246 354,900
404,421 -- 446,387 63,375 1,880,788 -- 1,923,022 211,250 3,359,247 -- 3,401,491 359,125

446,388 -- 488,402 67,600 1,923,023 -- 1,965,258 215,475 3,401,492 -- 3,443,737 363,350
488,403 -- 530,454 71,825 1,965,259 -- 2,007,495 219,700 3,443,738 -- 3,485,982 367,575
530,455 -- 572,535 76,050 2,007,496 -- 2,049,732 223,925 3,485,983 -- 3,528,228 371,800
572,536 -- 614,638 80,275 2,049,733 -- 2,091,970 228,150 3,528,229 -- 3,570,474 376,025
614,639 -- 656,760 84,500 2,091,971 -- 2,134,208 232,375 3,570,475 -- 3,612,720 380,250

656,761 -- 698,897 88,725 2,134,209 -- 2,176,447 236,600 3,612,721 -- 3,654,966 384,475
698,898 -- 741,047 92,950 2,176,448 -- 2,218,686 240,825 3,654,967 -- 3,697,212 388,700
741,048 -- 783,208 97,175 2,218,687 -- 2,260,926 245,050 3,697,213 -- 3,739,458 392,925
783,209 -- 825,378 101,400 2,260,927 -- 2,303,166 249,275 3,739,459 -- 3,781,704 397,150
825,379 -- 867,555 105,625 2,303,167 -- 2,345,406 253,500 3,781,705 -- 3,823,951 401,375

867,556 -- 909,739 109,850 2,345,407 -- 2,387,647 257,725 3,823,952 -- 3,866,197 405,600
909,740 -- 951,929 114,075 2,387,648 -- 2,429,887 261,950 3,866,198 -- 3,908,444 409,825
951,930 -- 994,124 118,300 2,429,888 -- 2,472,129 266,175 3,908,445 -- 3,950,690 414,050
994,125 -- 1,036,323 122,525 2,472,130 -- 2,514,370 270,400 3,950,691 -- 3,992,937 418,275
1,036,324 -- 1,078,527 126,750 2,514,371 -- 2,556,612 274,625 3,992,938 -- 4,034,875 422,500

1,078,528 -- 1,120,734 130,975 2,556,613 -- 2,598,854 278,850
1,120,735 -- 1,162,944 135,200 2,598,855 -- 2,641,097 283,075
1,162,945 -- 1,205,156 139,425 2,641,098 -- 2,683,339 287,300
1,205,157 -- 1,247,372 143,650 2,683,340 -- 2,725,582 291,525
1,247,373 -- 1,289,589 147,875 2,725,583 -- 2,767,825 295,750

1,289,590 -- 1,331,809 152,100 2,767,826 -- 2,810,068 299,975
1,331,810 -- 1,374,030 156,325 2,810,069 -- 2,852,312 304,200
1,374,031 -- 1,416,253 160,550 2,852,313 -- 2,894,555 308,425
1,416,254 -- 1,458,478 164,775 2,894,556 -- 2,936,799 312,650
For Expected Losses greater than $4,034,875, the Ballast Value can be calculated using the following formula (rounded to the nearest 1
Ballast = (0.10)(Expected Losses) + 2500(Expected Losses)(8.45) / (Expected Losses + (700)(8.45)
G = 8.45
Page 40 of 127

NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC.

NEVADA—UPDATE TO EXPERIENCE RATING PREMIUM ELIGIBILITY AMOUNTS
EXPERIENCE RATING PLAN MANUAL—2003 EDITION

RULE 2—EXPERIENCE RATING ELEMENTS AND FORMULA
A. PREMIUM ELIGIBILITY
2. State Subject Premium Eligibility Amounts
A risk qualifies for experience rating when its subject premium, developed in its experience period, meets or exceeds the minimum eligibility
amount shown in the State Table of Subject Premium Eligibility Amounts in Rule 2-A-2-c. Refer to Rule 2-E-1 to determine a risk's experience
period.
a. A risk qualifies for experience rating if its data within the most recent 24 months of the experience period develops a subject premium of at
least the amount shown in Column A.
b. A risk may not qualify according to Rule 2-A-2-a. If it has more than the amount of experience referenced in Rule 2-A-2-a, then to qualify
for experience rating the risk must develop an average annual subject premium of at least the amount shown in Column B. Refer to Rule
2-A-3 to determine average annual subject premium.
c. A risk's rating effective date determines the applicable Column A and Column B subject premium eligibility amounts required to qualify for
experience rating. Refer to Rule 2-B for rating effective date determination.
State Table of Subject Premium Eligibility Amounts

State Rating Effective Date Column A ($) Column B ($)
NV 9/1/21 and after 7,000 3,500
9/1/20 - 8/31/21 6,500 3,250
9/1/19 - 8/31/20 6,500 3,250
NOTE: This exhibit revises the Nevada experience rating subject premium eligibility amounts shown in the State Table of Subject
Premium Eligibility Amounts in NCCI's Experience Rating Plan Manual national Rule 2-A-2. The content shown in this table is not a
complete replacement of the existing State Table of Subject Premium Eligibility Amounts. The premium eligibility amounts are applicable
to all policies.
Page 41 of 127

Nevada

Voluntary

Proposed Values for Inclusion in the Retrospective Rating Plan Manual
The following pages include values for inclusion in the Retrospective Rating Plan Manual:
 Average cost per case

 Average cost per case including ALAE
 Excess loss pure premium factors
 Excess loss and allocated expense pure premium factors
 Retrospective pure premium development factors
Page 42 of 127

RETROSPECTIVE RATING PLAN MANUAL NEVADA
STATE SPECIAL RATING VALUES

1. Average Cost per Case by Hazard Group

A B C D E F G
5,665 7,772 9,311 10,961 17,452 24,470 28,268
Average Cost per Case including ALAE by Hazard Group

A B C D E F G
6,213 8,516 10,185 11,970 19,020 26,627 30,657
2. Excess Loss Pure Premium Factors

(Applicable to New and Renewal Policies)
Per Accident Hazard Groups

Limitation A B C D E F G
$10,000 0.584 0.622 0.650 0.681 0.719 0.746 0.764
$15,000 0.533 0.575 0.607 0.643 0.685 0.717 0.740
$20,000 0.493 0.538 0.572 0.611 0.656 0.691 0.718
$25,000 0.460 0.507 0.542 0.583 0.631 0.669 0.699
$30,000 0.432 0.480 0.516 0.559 0.609 0.649 0.682
$35,000 0.408 0.457 0.494 0.539 0.590 0.631 0.667
$40,000 0.388 0.437 0.474 0.520 0.572 0.615 0.653
$50,000 0.354 0.403 0.441 0.488 0.542 0.586 0.628
$75,000 0.294 0.343 0.382 0.430 0.485 0.532 0.580
$100,000 0.254 0.302 0.341 0.389 0.445 0.492 0.545
$125,000 0.226 0.271 0.310 0.358 0.414 0.462 0.517
$150,000 0.203 0.247 0.286 0.334 0.389 0.437 0.494
$175,000 0.186 0.228 0.267 0.313 0.369 0.416 0.475
$200,000 0.171 0.213 0.251 0.297 0.351 0.398 0.458
$225,000 0.159 0.199 0.237 0.282 0.336 0.382 0.443
$250,000 0.149 0.188 0.225 0.269 0.323 0.369 0.430
$275,000 0.140 0.178 0.215 0.258 0.311 0.356 0.418
$300,000 0.133 0.169 0.206 0.249 0.301 0.345 0.407
$325,000 0.126 0.162 0.198 0.240 0.291 0.335 0.397
$350,000 0.120 0.155 0.190 0.232 0.283 0.326 0.388
$375,000 0.115 0.149 0.184 0.225 0.275 0.318 0.380
$400,000 0.110 0.143 0.178 0.218 0.268 0.310 0.372
$425,000 0.106 0.138 0.172 0.212 0.261 0.303 0.365
$450,000 0.102 0.134 0.167 0.206 0.255 0.296 0.358
$475,000 0.099 0.129 0.163 0.201 0.249 0.290 0.352
$500,000 0.095 0.125 0.158 0.196 0.244 0.284 0.346
$600,000 0.085 0.112 0.144 0.180 0.225 0.264 0.325
$700,000 0.076 0.102 0.133 0.167 0.210 0.247 0.307
$800,000 0.070 0.094 0.123 0.156 0.198 0.233 0.292
$900,000 0.065 0.088 0.116 0.147 0.187 0.221 0.279
$1,000,000 0.060 0.082 0.109 0.139 0.178 0.211 0.267
$2,000,000 0.036 0.052 0.071 0.093 0.122 0.147 0.193
$3,000,000 0.026 0.038 0.053 0.070 0.094 0.114 0.153
$4,000,000 0.020 0.030 0.042 0.056 0.075 0.093 0.125
$5,000,000 0.016 0.024 0.034 0.046 0.063 0.078 0.106
$6,000,000 0.013 0.020 0.028 0.039 0.053 0.066 0.091
$7,000,000 0.011 0.017 0.024 0.033 0.046 0.057 0.079
$8,000,000 0.009 0.014 0.021 0.028 0.040 0.050 0.070
$9,000,000 0.008 0.012 0.018 0.025 0.035 0.044 0.062
$10,000,000 0.007 0.011 0.015 0.022 0.031 0.040 0.055
Page 43 of 127

RETROSPECTIVE RATING PLAN MANUAL NEVADA
STATE SPECIAL RATING VALUES

Excess Loss and Allocated

Expense Pure Premium Factors
(Applicable to New and Renewal Policies)
Per Accident Hazard Groups

Limitation A B C D E F G
$10,000 0.647 0.687 0.717 0.750 0.790 0.819 0.837
$15,000 0.593 0.638 0.671 0.709 0.754 0.788 0.811
$20,000 0.550 0.598 0.634 0.675 0.724 0.761 0.789
$25,000 0.514 0.565 0.602 0.646 0.697 0.737 0.769
$30,000 0.484 0.536 0.574 0.620 0.673 0.716 0.751
$35,000 0.459 0.511 0.550 0.598 0.652 0.697 0.734
$40,000 0.436 0.490 0.529 0.578 0.634 0.679 0.719
$50,000 0.399 0.453 0.493 0.543 0.601 0.649 0.693
$75,000 0.334 0.387 0.429 0.480 0.539 0.590 0.641
$100,000 0.291 0.342 0.384 0.435 0.496 0.547 0.602
$125,000 0.259 0.309 0.350 0.402 0.462 0.513 0.571
$150,000 0.234 0.282 0.324 0.375 0.435 0.486 0.546
$175,000 0.215 0.261 0.302 0.353 0.412 0.463 0.525
$200,000 0.199 0.244 0.285 0.334 0.393 0.444 0.507
$225,000 0.185 0.229 0.269 0.318 0.376 0.427 0.491
$250,000 0.174 0.216 0.256 0.304 0.362 0.412 0.476
$275,000 0.164 0.205 0.245 0.292 0.349 0.398 0.464
$300,000 0.155 0.195 0.234 0.281 0.337 0.386 0.452
$325,000 0.148 0.187 0.225 0.271 0.327 0.375 0.441
$350,000 0.141 0.179 0.217 0.262 0.317 0.365 0.431
$375,000 0.135 0.172 0.210 0.254 0.309 0.356 0.422
$400,000 0.129 0.166 0.203 0.247 0.301 0.347 0.414
$425,000 0.124 0.160 0.197 0.240 0.293 0.339 0.406
$450,000 0.120 0.155 0.191 0.234 0.287 0.332 0.398
$475,000 0.116 0.150 0.186 0.228 0.280 0.325 0.391
$500,000 0.112 0.145 0.181 0.223 0.274 0.318 0.385
$600,000 0.099 0.130 0.165 0.204 0.254 0.296 0.361
$700,000 0.089 0.119 0.151 0.189 0.237 0.277 0.342
$800,000 0.082 0.109 0.141 0.177 0.223 0.262 0.325
$900,000 0.075 0.102 0.132 0.166 0.211 0.249 0.311
$1,000,000 0.070 0.095 0.124 0.158 0.201 0.237 0.298
$2,000,000 0.042 0.059 0.081 0.105 0.138 0.166 0.217
$3,000,000 0.030 0.043 0.060 0.079 0.106 0.129 0.172
$4,000,000 0.023 0.034 0.047 0.063 0.086 0.105 0.142
$5,000,000 0.018 0.028 0.039 0.052 0.071 0.088 0.120
$6,000,000 0.015 0.023 0.032 0.044 0.061 0.075 0.103
$7,000,000 0.013 0.019 0.027 0.038 0.052 0.065 0.090
$8,000,000 0.011 0.017 0.024 0.033 0.046 0.057 0.080
$9,000,000 0.009 0.014 0.021 0.029 0.040 0.051 0.071
$10,000,000 0.008 0.013 0.018 0.025 0.035 0.045 0.064
3. Retrospective Pure Premium Development Factors
With Loss Limit Without Loss Limit

1st 2nd 3rd 1st 2nd 3rd 4th & Subsequent
Adj. Adj. Adj. Adj. Adj. Adj. Adjustment
0.09 0.07 0.06 0.29 0.22 0.19 0.00
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Voluntary

Part 3 Supporting Exhibits
- Exhibit I: Determination of the Indicated Loss Cost Level Change
- Exhibit II: Workers Compensation Loss Adjustment Expenses
- Appendix A: Factors Underlying the Proposed Loss Cost Level Change
- Appendix B: Calculations Underlying the Loss Cost Change by Classification
- Appendix C: Memoranda for Laws and Assessments
- Appendix D: Advisory Loss Costs Comparison
- Appendix E: Determination of Assigned Risk Rates
- Appendix F: Derivation of Experience Rating Values
Page 45 of 127

Nevada

Voluntary

Exhibit I – Determination of Indicated Loss Cost Level Change
NCCI uses the following general methodology to determine the indicated change based on
experience, trend, and benefits for each of the policy years in the experience period:
1. Standard earned premium at Designated Statistical Reporting (DSR) level is developed

to ultimate and on-leveled to the current approved loss cost level
2. Reported indemnity and medical losses are developed to ultimate and on-leveled to a
common benefit level to yield adjusted losses
3. Indemnity and medical cost ratios excluding trend and benefits are calculated as
adjusted losses (step 2) divided by premium available for benefit costs (step 1)
4. Trend factors are applied to the indemnity and medical cost ratios to reflect expected
differences between the historical experience years and the effective period of the
proposed filing
5. A factor is applied to reflect the impact of proposed indemnity and medical benefit
changes
6. The projected indemnity and medical cost ratios including benefit changes are added to
yield the indicated change based on experience, trend, and benefits
The indicated change based on experience, trend, and benefits for this filing is calculated as the
average of the indicated changes for each of the individual policy years in the experience
period. Lastly, the impact of the change in loss adjustment expenses is applied. The detailed
calculations can be found on the following pages.
Page 46 of 127

NEVADA

EXHIBIT I
Determination of Indicated Loss Cost Level Change
Section A - Policy Year 2018 Experience
Premium:
(1) Standard Earned Premium Developed to Ultimate (Appendix A-II) $281,906,423

(2) Premium On-level Factor (Appendix A-I) 0.792
(3) Pure Premium Available for Benefit Costs = (1) x (2) $223,269,887
Indemnity Benefit Cost:
(4) Indemnity Losses Developed to Ultimate (Appendix A-II) $113,909,074

(5) Indemnity Loss On-level Factor (Appendix A-I) 1.130
(6) Adjusted Indemnity Losses = (4) x (5) $128,717,254
(7) Adjusted Indemnity Cost Ratio excluding Trend and Benefits = (6) / (3) 0.577
(8) Factor to Reflect Indemnity Trend (Appendix A-III) 0.906
(9) Projected Indemnity Cost Ratio = (7) x (8) 0.523
(10) Factor to Reflect Proposed Changes in Indemnity Benefits (Appendix C) 1.000
(11) Projected Indemnity Cost Ratio including Benefit Changes = (9) x (10) 0.523
Medical Benefit Cost:
(12) Medical Losses Developed to Ultimate (Appendix A-II) $100,356,661

(13) Medical Loss On-level Factor (Appendix A-I) 1.006
(14) Adjusted Medical Losses = (12) x (13) $100,958,801
(15) Adjusted Medical Cost Ratio excluding Trend and Benefits = (14) / (3) 0.452
(16) Factor to Reflect Medical Trend (Appendix A-III) 0.891
(17) Projected Medical Cost Ratio = (15) x (16) 0.403
(18) Factor to Reflect Proposed Changes in Medical Benefits (Appendix C) 1.014
(19) Projected Medical Cost Ratio including Benefit Changes = (17) x (18) 0.409
Total Benefit Cost:
(20) Indicated Change Based on Experience, Trend and Benefits = (11) + (19) 0.932
Page 47 of 127

NEVADA

EXHIBIT I
Section B - Policy Year 2017 Experience
Premium:
(1) Standard Earned Premium Developed to Ultimate (Appendix A-II) $258,858,667

(2) Premium On-level Factor (Appendix A-I) 0.776
(3) Pure Premium Available for Benefit Costs = (1) x (2) $200,874,326
Indemnity Benefit Cost:
(4) Indemnity Losses Developed to Ultimate (Appendix A-II) $99,657,710

(5) Indemnity Loss On-level Factor (Appendix A-I) 1.207
(6) Adjusted Indemnity Losses = (4) x (5) $120,286,856
(7) Adjusted Indemnity Cost Ratio excluding Trend and Benefits = (6) / (3) 0.599
(8) Factor to Reflect Indemnity Trend (Appendix A-III) 0.879
(9) Projected Indemnity Cost Ratio = (7) x (8) 0.527
(10) Factor to Reflect Proposed Changes in Indemnity Benefits (Appendix C) 1.000
(11) Projected Indemnity Cost Ratio including Benefit Changes = (9) x (10) 0.527
Medical Benefit Cost:
(12) Medical Losses Developed to Ultimate (Appendix A-II) $95,526,099

(13) Medical Loss On-level Factor (Appendix A-I) 1.015
(14) Adjusted Medical Losses = (12) x (13) $96,958,990
(15) Adjusted Medical Cost Ratio excluding Trend and Benefits = (14) / (3) 0.483
(16) Factor to Reflect Medical Trend (Appendix A-III) 0.860
(17) Projected Medical Cost Ratio = (15) x (16) 0.415
(18) Factor to Reflect Proposed Changes in Medical Benefits (Appendix C) 1.014
(19) Projected Medical Cost Ratio including Benefit Changes = (17) x (18) 0.421
Total Benefit Cost:
(20) Indicated Change Based on Experience, Trend and Benefits = (11) + (19) 0.948
Page 48 of 127

NEVADA
EXHIBIT I
Section C - Indicated Change Based on Experience, Trend, and Benefits
(1) Policy Year 2018 Indicated Change Based on Experience, Trend, and Benefits 0.932
(2) Policy Year 2017 Indicated Change Based on Experience, Trend, and Benefits 0.948
(3) Indicated Change Based on Experience, Trend, and Benefits = [(1)+(2)] / 2 0.940
Section D - Application of the Change in Loss-based Expenses
(1) Indicated Loss Cost Level Change 0.940
(2) Effect of the Change in Loss-based Expenses (Exhibit II) 1.009
(3) Indicated Change Modified to Reflect the Change in Loss-based Expenses = (1) x (2) 0.948
Section E - Distribution of Overall Loss Cost Level Change to Industry Groups
Industry Group Differentials (Appendix A-IV):
Manufacturing 0.994
Contracting 1.001
Office & Clerical 0.997
Goods & Services 0.985
Miscellaneous 1.031
Applying these industry group differentials to the final overall loss cost level change produces the changes in loss cost
level proposed for each group as shown:
(1) (2) (3) = (1) x (2)

Final Overall Industry Final Loss Cost
Loss Cost Group Level Change
Industry Group Level Change Differential by Industry Group
Manufacturing 0.948 0.994 0.942 (-5.8%)
Contracting 0.948 1.001 0.949 (-5.1%)
Office & Clerical 0.948 0.997 0.945 (-5.5%)
Goods & Services 0.948 0.985 0.934 (-6.6%)
Miscellaneous 0.948 1.031 0.977 (-2.3%)
Overall 0.948 1.000 0.948 (-5.2%)
Page 49 of 127

Nevada

Voluntary

Exhibit II – Workers Compensation Loss Adjustment Expenses
The proposed loss costs include a provision for loss adjustment expenses (LAE).
LAE is included in the loss costs by using a ratio of loss adjustment expense dollars to loss
dollars (called the LAE provision). These expenses are directly associated with the handling of
workers compensation claims. The LAE provision is comprised of two components: Adjusting
and Other Expenses (AOE) and Defense and Cost Containment Expenses (DCCE).
Given the nature of AOE, it cannot be allocated to a specific claim, and hence cannot be
accurately attributed to specific states. Therefore, the state specific AOE ratio reflects the latest
selected countrywide provision. The countrywide provision was calculated using data obtained
from the NCCI Call for Loss Adjustment Expense. The accident year developed AOE ratios
displayed in Section A are calculated on a countrywide basis using private carrier-only data.
NCCI used the following general methodology to determine the proposed DCCE provision
based on Nevada-specific paid DCCE and losses reported on the NCCI Call for Policy Year
Data:
 Ratios of reported paid DCCE-to-paid losses by policy year are developed to a 15th
report using DCCE ratio development factors. The development factors were adjusted to
account for the calendar year 2018 impact from the adoption of the Actuarial Annuity
Table, pursuant to NRS 616C.495.
 A 15th-to-ultimate tail factor is applied to reflect expected development beyond a 15th
report.
 The proposed DCCE provision is selected based on the ultimate projected DCCE ratios
by policy year.
The calculation of the loss adjustment expense provision is shown on the following pages.
Page 50 of 127

NEVADA
EXHIBIT II
Workers Compensation Loss Adjustment Expense Provision
Section A - Proposed Change in Nevada Loss Adjustment Expense Provision
NCCI proposes a 18.0% loss adjustment expense allowance as a percentage of incurred

losses. This represents a 0.9% increase from the currently approved loss adjustment
expense provision.
(1) (2)
Nevada Currently
Provisions Approved Proposed
AOE 8.0% 8.9%
DCCE 9.0% 9.1%
Total LAE 17.0% 18.0%
Proposed Change in Nevada LAE Provision 1.009

= [1.0 + (2) ] / [ 1.0 + (1) ] - 1 0.9%
Section B - Selection of AOE Provision
The adjusting and other expense data by accident year shown below is based on countrywide
data for private carriers. NCCI's countrywide selection for the AOE provision is 8.9%.
Ultimate AOE
Accident Year Ratio
2015 7.8%
2016 8.3%
2017 8.9%
2018 8.8%
2019 8.9%
Countrywide Selected 8.9%
Nevada Selected 8.9%
Page 51 of 127

NEVADA
EXHIBIT II
Section C - Selection of DCCE Provision
(1) (2) (3)

Reported Ratio of Age to Ultimate
Paid DCCE to Development Ultimate DCCE
Policy Year Paid Losses Factor Ratio
2014 10.4% 0.926 9.6%
2015 10.5% 0.932 9.8%
2016 9.3% 0.947 8.8%
2017 9.5% 0.966 9.2%
2018 9.1% 0.973 8.9%
Nevada Selected 9.1%
(2) Section D
(3) = (1) x (2)
Section D - Summary of Paid DCCE to Paid Loss Ratio Development Factors
(1) (2)
DCCE Ratio Development
Report To Next Report To Ultimate
1st 1.007 0.973
2nd 1.020 0.966
3rd 1.016 0.947
4th 1.006 0.932
5th 1.006 0.926
6th 1.007 0.920
7th 1.006 0.914
8th 1.003 0.909
9th 0.997 0.906
10th 0.994 0.909
11th 0.996 0.914
12th 0.995 0.918
13th 0.998 0.923
14th 1.000 0.925
15th 0.925*
(1) Section E
(2) = Cumulative upward product of column (1)
*Selection
Page 52 of 127

NEVADA

EXHIBIT II
Section E - Paid DCCE to Paid Loss Ratio Development Factors
Valuation 1st/2nd 2nd/3rd 3rd/4th 4th/5th 5th/6th 6th/7th

12/31/2016 1.026 1.032 0.994 1.013 1.012 1.004
12/31/2017 1.011 1.024 1.030 1.005 1.003 1.014
12/31/2018 0.931 1.012 0.995 1.001 0.999 0.993
12/31/2019 0.983 1.005 1.024 1.001 1.004 1.002
Selected* 1.007 1.020 1.016 1.006 1.006 1.007
Valuation 7th/8th 8th/9th 9th/10th 10th/11th 11th/12th 12th/13th

12/31/2016 1.004 1.003 0.993 0.996 0.993 0.996
12/31/2017 1.006 1.003 0.999 0.986 1.000 0.997
12/31/2018 0.998 1.003 0.999 0.995 0.997 0.997
12/31/2019 1.008 1.003 0.999 0.999 0.996 0.991
Selected* 1.006 1.003 0.997 0.994 0.996 0.995
Valuation 13th/14th 14th/15th

12/31/2016 1.000 0.999
12/31/2017 0.997 0.999
12/31/2018 0.999 0.991
12/31/2019 0.996 1.002
Selected* 0.998 1.000
*The 12/31/2018 Valuation diagonal was excluded when calculating the 3-year average paid
DCCE to paid loss ratio development to account for the calendar year 2018 impact from the
adoption of the Actuarial Annuity Table, pursuant to NRS 616C.495
Page 53 of 127

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Voluntary

Appendix A – Factors Underlying the Proposed Loss Cost Level Change
Appendix A-I Determination of Policy Year On-level Factors

NCCI uses premium and loss on-level factors to adjust historical policy year experience to
current loss cost and benefit levels, respectively.
Premium on-level factors are adjustment factors that reflect the cumulative impact of all
premium level changes that have occurred during and after the individual year being on-leveled.
To calculate a weighted average, NCCI utilizes a monthly premium distribution for Nevada
based on an analysis of policies reported in the Unit Statistical Data. Additional adjustments
applied as part of the premium on-level factor calculation include:
 Adjustment for Expense Constant Removal: This factor removes premium collected via
the charged expense constant.
 Adjustment for Expense Removal: This factor is applied to remove expenses from the
reported assigned risk and voluntary DSR level premium totals—to render the separate
market premiums more comparable.
 Uncollectible Premium Provision to Gross Premium Factor: This factor is applied to the
assigned risk market premium in states where it is necessary to account for the
difference between gross premium as reported and the ultimate premium that is
collected.
 Experience Rating Off-Balance Adjustment Factor: This factor reflects the relative
difference between the average experience rating modification for the historical year
being on-leveled and the average experience rating modification targeted in the filing.
 Factor to Reflect the Impact of Assigned Risk Pricing Programs: This factor adjusts the
ratemaking premium to a common assigned risk market share of 5% across experience
years. The adjustment removes possible policy year-to-policy year distortions that may
result due to changes in the volume of business written in the assigned risk market. In
addition, the application of a consistent market share value from filing-to-filing results in
benchmark level loss costs that are independent of changes in the size of the assigned
risk market.
Loss on-level factors are adjustment factors that reflect the cumulative impact of all benefit level
changes that have occurred during and after the individual year of data being on-leveled.
Note: For NCCI ratemaking purposes, proposed benefit level changes that (i) do not impact the
experience period of the filing and (ii) have not yet been approved are included in Exhibit I,
rather than in the loss on-level calculation.
Page 54 of 127

NEVADA

APPENDIX A-I

Determination of Policy Year On-level Factors
Section A - Factor Adjusting 2018 Policy Year Assigned Risk Premium to Present Assigned Risk Level
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Adj. For UPP Adj. Premium
Rate Adj. Factor Expense Adj. For to Gross Adjustment
Level Cumulative Product Present Index/ Constant Expense Premium Factor
Date Change Index Weight (2)x(3) Sum Column (4) Removal @ Removal Factor (5)x(6)x(7)x(8)
NR 03/01/17 Base 1.000 0.233 0.233 0.956 0.971 0.707 0.985 0.646
NR 03/01/18 1.002 1.002 0.075 0.075
NR 03/15/18 1.047 1.049 0.692 0.726
NR 03/01/19 0.927 0.972
NR 09/01/19 1.033 1.004
NR 03/01/20 0.954 0.958
NR 09/01/20 1.031 0.988
1.034
Section B - Factor Adjusting 2018 Policy Year Voluntary Premium to Present Voluntary Level
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Loss Cost Adj. Factor Expense Adj. For to Gross Adjustment
NR 03/01/17 Base 1.000 0.233 0.233 0.956 1.000 0.855 1.000 0.817
NR 03/01/18 0.977 0.977 0.075 0.073
NR 03/15/18 1.047 1.023 0.692 0.708
NR 03/01/19 0.919 0.940
NR 09/01/19 1.033 0.971
NR 03/01/20 0.968 0.940
NR 09/01/20 1.031 0.969
1.014
Section C - Factor Adjusting 2018 Policy Year Assigned Risk Premium and Voluntary Premium to Present Statewide Level
(1) Assigned Risk Market Share PY 2018 0.095

(2) Voluntary Market Share PY 2018 0.905
(3) Assigned Risk Standard Premium Adjustment Factor (See Sec. A) 0.646
(4) Voluntary Standard Premium Adjustment Factor (See Sec. B) 0.817
(5) Premium Adjustment Factor = [(1)x(3)]/1.378+(2)x(4) # 0.783
(6) Experience Rating Off-balance Adjustment Factor* 0.998
(7) Factor to Reflect the Impact of Assigned Risk Pricing Programs 0.986
(8) Final Premium Adjustment Factor = [(5)x(6)]/(7) 0.792
NR New and renewal business.

@ Eliminates premium derived from expense constants.
# Current premium index (assigned risk-to-voluntary) = 1.378
* = 0.998 = 0.956 / 0.958 = (Targeted Off-balance) / (Off-balance for Policy Year 2018)
Page 55 of 127

NEVADA

APPENDIX A-I

Section D - Factor Adjusting 2018 Policy Year Indemnity Losses to Present Benefit Level
(1) (2) (3) (4) (5)
Benefit Adj. Factor

Level Cumulative Product Present Index/
Date Change Index Weight (2)x(3) Sum Column (4)
12/04/17 Base 1.000 0.014 0.014 1.130

02/01/18 1.000 1.000 0.164 0.164
07/01/18 1.001 1.001 0.476 0.476
02/01/19 1.000 1.001 0.253 0.253
07/01/19 1.072 1.073 0.093 0.100
07/01/20 1.061 1.138
1.007
Section E - Factor Adjusting 2018 Policy Year Medical Losses to Present Benefit Level
(1) (2) (3) (4) (5)
Benefit Adj. Factor

12/04/17 Base 1.000 0.014 0.014 1.006

02/01/18 1.009 1.009 0.164 0.165
07/01/18 1.000 1.009 0.476 0.480
02/01/19 1.009 1.018 0.253 0.258
07/01/19 1.000 1.018 0.093 0.095
07/01/20 1.000 1.018
1.012
Page 56 of 127

NEVADA

APPENDIX A-I

Section F - Factor Adjusting 2017 Policy Year Assigned Risk Premium to Present Assigned Risk Level
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Rate Adj. Factor Expense Adj. For to Gross Adjustment
NR 03/01/16 Base 1.000 0.233 0.233 0.963 0.968 0.707 0.985 0.649
NR 03/01/17 0.895 0.895 0.767 0.686
NR 03/01/18 1.002 0.897
NR 03/15/18 1.047 0.939
NR 03/01/19 0.927 0.870
NR 09/01/19 1.033 0.899
NR 03/01/20 0.954 0.858
NR 09/01/20 1.031 0.885
0.919
Section G - Factor Adjusting 2017 Policy Year Voluntary Premium to Present Voluntary Level
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Loss Cost Adj. Factor Expense Adj. For to Gross Adjustment
NR 03/01/16 Base 1.000 0.233 0.233 0.942 1.000 0.855 1.000 0.805
NR 03/01/17 0.893 0.893 0.767 0.685
NR 03/01/18 0.977 0.872
NR 03/15/18 1.047 0.913
NR 03/01/19 0.919 0.839
NR 09/01/19 1.033 0.867
NR 03/01/20 0.968 0.839
NR 09/01/20 1.031 0.865
0.918
Section H - Factor Adjusting 2017 Policy Year Assigned Risk Premium and Voluntary Premium to Present Statewide Level
(1) Assigned Risk Market Share PY 2017 0.107

(2) Voluntary Market Share PY 2017 0.893
(3) Assigned Risk Standard Premium Adjustment Factor (See Sec. F) 0.649
(4) Voluntary Standard Premium Adjustment Factor (See Sec. G) 0.805
(5) Premium Adjustment Factor = [(1)x(3)]/1.378+(2)x(4) # 0.769
(6) Experience Rating Off-balance Adjustment Factor* 0.996
(7) Factor to Reflect the Impact of Assigned Risk Pricing Programs 0.987
(8) Final Premium Adjustment Factor = [(5)x(6)]/(7) 0.776
NR New and renewal business.

@ Eliminates premium derived from expense constants.
# Current premium index (assigned risk-to-voluntary) = 1.378
* = 0.996 = 0.956 / 0.960 = (Targeted Off-balance) / (Off-balance for Policy Year 2017)
Page 57 of 127

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APPENDIX A-I

Section I - Factor Adjusting 2017 Policy Year Indemnity Losses to Present Benefit Level
(1) (2) (3) (4) (5)
Benefit Adj. Factor

02/01/16 Base 1.000 0.014 0.014 1.207

02/01/17 1.000 1.000 0.496 0.496
12/04/17 1.126 1.126 0.144 0.162
02/01/18 1.000 1.126 0.253 0.285
07/01/18 1.001 1.127 0.093 0.105
02/01/19 1.000 1.127
07/01/19 1.072 1.208
07/01/20 1.061 1.282
1.062
Section J - Factor Adjusting 2017 Policy Year Medical Losses to Present Benefit Level
(1) (2) (3) (4) (5)
Benefit Adj. Factor

02/01/16 Base 1.000 0.014 0.014 1.015

02/01/17 1.013 1.013 0.496 0.502
12/04/17 1.000 1.013 0.144 0.146
02/01/18 1.009 1.022 0.253 0.259
07/01/18 1.000 1.022 0.093 0.095
02/01/19 1.009 1.031
07/01/19 1.000 1.031
07/01/20 1.000 1.031
1.016
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Voluntary

Appendix A-II Determination of Premium and Losses Developed to an Ultimate Report

Development factors are used to project premium and losses to an ultimate report. In general,
the ultimate development factors are based on a chain-ladder approach that utilizes average
link ratios for several maturities and the application of a tail factor, as shown in Appendix A-II
Sections A through F.
For premium development, link ratios are used from 1st report through 5th report. It is assumed
that no further development occurs after the 5th report.
For indemnity and medical loss development, link ratios are used from 1st report through the 16th
report.
For indemnity and medical loss development past the 16th report, a “tail” factor is used to reflect
all future expected emergence. The selection of indemnity and medical paid 16th-to-ultimate tail
factors utilizes the results of fitting an inverse power curve to incremental loss development
factors as well as historical development patterns.
Assembly Bill 438 incorporates a cost of living adjustment (COLA) for workers entitled to receive
compensation under permanent total disability from which the accident causing such injury
occurred on or after January 1, 2004. The annual COLA is set at 2.3%.
The experience period for this filing includes any permanent total disability claims incurred
during policy years 2017 and 2018, which are subject to AB 438. However, because the COLA
on these claims is minimal as of December 31, 2019, the reported paid losses do not reflect the
impact of AB 438. Since the future emergence of the COLA is also not fully reflected in the paid
loss development pattern, an adjustment to the paid loss development factors is necessary.
Going forward, the impact of this adjustment will diminish over time as the paid loss
development pattern increasingly reflects the COLA.
The adoption of the Actuarial Annuity Table, pursuant to NRS 616C.495, increases paid losses
for lump sum payments of permanent partial disability awards made after December 4, 2017.
This is seen in the data reported as of December 31, 2018. Since the implementation impact in
the calendar year 2018 diagonal is not reflective of future loss emergence, this diagonal was
excluded when calculating the 3-year average paid development for indemnity losses.
Additionally, the one-year average was selected for the 1st to 2nd development link ratio to
respond to expected changes in the development pattern following the adoption of the Actuarial
Annuity Table.
Page 59 of 127

NEVADA

APPENDIX A-II
Determination of Premium and Losses Developed to an Ultimate Report
Section A - Premium and Loss Summary Valued as of 12/31/2019
Policy Year 2018
(1) Standard Earned Premium $282,754,687

(2) Factor to Develop Premium to Ultimate 0.997
(3) Standard Earned Premium Developed to Ultimate = (1)x(2) $281,906,423
(4) Indemnity Paid Losses $34,237,774

(5) Indemnity Paid Development Factor to Ultimate 3.327
(6) Indemnity Paid Losses Developed to Ultimate = (4)x(5) $113,909,074
(7) Medical Paid Losses $54,246,844

(8) Medical Paid Development Factor to Ultimate 1.850
(9) Medical Paid Losses Developed to Ultimate = (7)x(8) $100,356,661
Policy Year 2017
(1) Standard Earned Premium $259,377,422

(2) Factor to Develop Premium to Ultimate 0.998
(3) Standard Earned Premium Developed to Ultimate = (1)x(2) $258,858,667
(4) Indemnity Paid Losses $55,861,945

(5) Indemnity Paid Development Factor to Ultimate 1.784
(6) Indemnity Paid Losses Developed to Ultimate = (4)x(5) $99,657,710
(7) Medical Paid Losses $62,313,176

(8) Medical Paid Development Factor to Ultimate 1.533
(9) Medical Paid Losses Developed to Ultimate = (7)x(8) $95,526,099
Page 60 of 127

NEVADA

APPENDIX A-II
Section B - Premium Development Factors
Policy Policy Policy Policy

Year 1st/2nd Year 2nd/3rd Year 3rd/4th Year 4th/5th
2015 1.002 2014 0.999 2013 1.000 2012 1.000

2016 0.999 2015 0.995 2014 1.000 2013 1.000
2017 0.997 2016 0.999 2015 1.000 2014 1.000
Average 0.999 Average 0.998 Average 1.000 Average 1.000
Summary of Premium Development Factors
1st/5th 2nd/5th 3rd/5th 4th/5th

0.997 0.998 1.000 1.000
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NEVADA

APPENDIX A-II
Section C - Indemnity Paid Loss Development Factors

2014 1.706 2013 1.197 2012 1.074 2011 1.038

2015 1.717 2014 1.170 2013 1.071 2012 1.031
2016 1.924 2015 1.239 2014 1.084 2013 1.070
2017 1.865 2016 1.192 2015 1.096 2014 1.043
Selected^ 1.865 Selected* 1.186 Selected* 1.080 Selected* 1.037

Year 5th/6th Year 6th/7th Year 7th/8th Year 8th/9th
2010 1.017 2009 1.019 2008 1.014 2007 1.004

2011 1.018 2010 1.018 2009 1.008 2008 1.010
2012 1.028 2011 1.024 2010 1.017 2009 1.009
2013 1.028 2012 1.019 2011 1.015 2010 1.007
Selected* 1.021 Selected* 1.019 Selected* 1.012 Selected* 1.007

2006 1.011 2005 1.012 2004 1.011 2003 1.007

2007 1.010 2006 1.024 2005 1.008 2004 1.010
2008 1.009 2007 1.009 2006 1.011 2005 1.007
2009 1.008 2008 1.007 2007 1.008 2006 1.010
Selected* 1.010 Selected* 1.014 Selected* 1.009 Selected* 1.009
Policy Policy Policy

Year 13th/14th Year 14th/15th Year 15th/16th
2002 1.006 2001 1.006 2000 1.014

2003 1.007 2002 1.004 2001 1.006
2004 1.008 2003 1.009 2002 1.006
2005 1.008 2004 1.008 2003 1.006
Selected* 1.007 Selected* 1.006 Selected** 1.003
^A one year average was selected for the 1st/2nd development factor to reflect the development pattern impacts resulting from the
adoption of the Actuarial Annuity Table, pursuant to NRS 616C.495.
*The @2018 diagonal was excluded when calculating the 3-year average paid development for indemnity losses to account for the
calendar year 2018 impact from the adoption of the Actuarial Annuity Table, pursuant to NRS 616C.495.
**The 15th/16th link ratio is raised to the one-half power to remove the overlap with the AY 16th/Ult development factor.
Page 62 of 127

NEVADA

APPENDIX A-II
Section D - Medical Paid Loss Development Factors

2015 1.201 2014 1.051 2013 1.032 2012 1.019

2016 1.201 2015 1.041 2014 1.024 2013 1.020
2017 1.220 2016 1.022 2015 1.028 2014 1.024

2011 1.020 2010 1.010 2009 1.006 2008 1.007

2012 1.009 2011 1.017 2010 1.009 2009 1.011
2013 1.007 2012 1.006 2011 0.997 2010 1.006

2007 1.011 2006 1.025 2005 1.009 2004 1.014

2008 1.005 2007 1.013 2006 1.019 2005 1.008
2009 1.007 2008 1.004 2007 1.020 2006 1.023
Policy Policy Policy

Year 13th/14th Year 14th/15th Year 15th/16th
2003 1.014 2002 1.013 2001 1.010

2004 1.012 2003 1.019 2002 1.008
2005 1.009 2004 1.010 2003 1.011
Average 1.012 Average 1.014 Selected* 1.005
*The 15th/16th link ratio is raised to the one-half power to remove the overlap with the AY 16th/Ult development factor.
Page 63 of 127

NEVADA
APPENDIX A-II
Section E - Accident Year Tail Development Factors
Paid development from 16th report to ultimate (tail development) is selected after analyzing the results of fitting an inverse power
curve to incremental loss development factors, as well as, reviewing historical loss development patterns. The selected paid
age-to-ultimate factors at 16th report are as follows:
Paid 16th
to Ultimate
Indemnity 1.195
Medical 1.251
Section F - Summary of Paid Loss Development Factors
(1) (2) (3) (4)

Indemnity Paid Loss Development Medical Paid Loss Development
Report to Next Report to Ultimate Report to Next Report to Ultimate
1st 1.865 3.3271 1st 1.207 1.850
2nd 1.186 1.7841 2nd 1.038 1.533
3rd 1.080 1.5041 3rd 1.028 1.477
4th 1.037 1.3931 4th 1.021 1.437
5th 1.021 1.3431 5th 1.012 1.407
6th 1.019 1.3151 6th 1.011 1.390
7th 1.012 1.2901 7th 1.004 1.375
8th 1.007 1.2751 8th 1.008 1.370
9th 1.010 1.2661 9th 1.008 1.359
10th 1.014 1.2531 10th 1.014 1.348
11th 1.009 1.2361 11th 1.016 1.329
12th 1.009 1.2251 12th 1.015 1.308
13th 1.007 1.2141 13th 1.012 1.289
14th 1.006 1.2061 14th 1.014 1.274
15th 1.003 1.1991 15th 1.005 1.256
16th2 1.1951 16th2 1.251
(2) = Cumulative upward product of column (1).

(4) = Cumulative upward product of column (3).
1
Includes an adjustment of 1.031 to reflect the impact of AB 438.
2
Accident Year Tail Development Factors.
Page 64 of 127

Nevada

Voluntary

Appendix A-III Trend Factors

NCCI separately analyzes a measure of the number of workplace injuries (claim frequency) and
the average indemnity and medical costs of each of these injuries (claim severity). Premium,
lost-time claim counts, and losses used in these frequency and severity calculations are
developed to ultimate and adjusted for changes in the level of workers’ wages over time using
the United States Bureau of Labor Statistics Quarterly Census of Employment and Wages for
Nevada. Note that medical-only claim counts are excluded from the claim frequency and
severity calculations, but the losses associated with medical-only claims are included.
While claim frequency and average costs per case are reviewed separately, NCCI selects
annual indemnity and medical loss ratio trend factors based on an analysis of historical
indemnity and medical loss ratios, along with other pertinent considerations, including, but not
limited to, changes in system benefits and administration, economic environment, credibility of
state data, and prior trend approach and selection.
The lost-time claim frequency, average costs per case, and loss ratios for Policy Years 2004
through 2018 are shown in Appendix A-III, along with the impact of the trend selection for each
policy year in the experience period. The trend lengths displayed in Section B(3) are calculated
by comparing the average accident date for the effective period of the proposed loss costs to
each of the policy years in the experience period. The average accident dates are based on a
Nevada distribution of policy writings by month and assume a uniform probability of loss over
the coverage period.
Page 65 of 127

NEVADA
APPENDIX A-III
Policy Year Trend Factors
Section A - Summary of Policy Year Data
(1) (2) (3) (4) (5) (6)
Lost-Time Indemnity Paid Medical Paid

Policy Claim Avg Cost Loss Avg Cost Loss
Year Frequency* Per Case* Ratio Per Case* Ratio
2004 26.480 32,435 0.858 30,857 0.817

2005 25.342 30,921 0.783 28,074 0.711
2006 23.007 34,794 0.801 36,123 0.832
2007 22.167 37,794 0.838 31,894 0.708
2008 20.195 41,691 0.842 30,746 0.621
2009 20.754 37,423 0.777 32,083 0.666
2010 21.742 31,415 0.683 28,908 0.628
2011 21.438 31,478 0.675 30,404 0.652
2012 21.499 30,092 0.647 25,909 0.557
2013 20.206 32,815 0.663 28,497 0.576
2014 19.518 31,368 0.612 27,549 0.537
2015 19.233 32,254 0.621 26,964 0.519
2016 17.621 35,555 0.626 28,766 0.507
2017 16.825 35,561 0.599 28,666 0.483
2018 15.595 36,966 0.577 28,994 0.452
* Figures have been adjusted to the common wage level.
Section B - Summary of Annual Trend Factors

Indemnity Medical
(1) Current Approved Annual Loss Ratio Trend Factor 0.960 0.970
(2) Selected Annual Loss Ratio Trend Factor 0.970 0.965
(3) Length of Trend Period from Midpoint of Policy Year to Midpoint of Effective Period:
Years
Policy Year 2017 4.236
Policy Year 2018 3.236
(4) Trend Factor Applied to Experience Year = (2) ^ (3) Indemnity Medical
Policy Year 2017 0.879 0.860

Policy Year 2018 0.906 0.891
Page 66 of 127

NEVADA

APPENDIX A-IV
Derivation of Industry Group Differentials

Industry group differentials are used to more equitably distribute the overall loss cost level change based on the individual
experience of each industry group. The payroll, losses and claim counts used in the calculations below are from NCCI’s Workers
Compensation Statistical Plan (WCSP) data.
I. Expected Losses
The current expected losses (columns (1) and (2)) are the payroll extended by the pure premiums underlying the latest approved
loss costs. The proposed expected losses (3) are the current expected losses adjusted to the proposed level. These adjustments
include the proposed experience, trend, benefit and, if applicable, loss-based expense changes as well as any miscellaneous
premium adjustments.
(1) (2) (3) (4) (5)
Latest Year Five Year Five Year
Current Expected Current Expected Proposed Expected Current Proposed
Losses Prior to Losses Prior to Losses Prior to Ratio of Ratio of
Adjustment for Adjustment for Adjustment for Manual to Manual to
Change in Change in Change in Standard Standard
Industry Group Off-Balance Off-Balance Off-Balance Premium Premium
Manufacturing 37,855,585 156,654,093 148,354,411 1.110 1.117
Contracting 99,100,765 403,738,763 382,920,076 1.116 1.114
Office & Clerical 39,162,420 179,469,022 169,850,456 1.061 1.064
Goods & Services 135,537,325 602,299,404 569,418,119 1.061 1.064
Miscellaneous 72,779,283 338,359,099 321,008,983 1.182 1.187
Statewide 384,435,379 1,680,520,382 1,591,552,044
(6) (7) (8) (9) (10)

Latest Year Five Year Five Year
Current Expected Current Expected Proposed Expected Adjustment to
Losses Adjusted Losses Adjusted Losses Adjusted Proposed for
for Change in for Change in for Change in Current/ Current
Off-Balance Off-Balance Off-Balance Proposed Relativity
Industry Group (1)x(4)/(5) (2)x(4)/(5) (3)x(4)/(5) (7)/(8) (9)IG/(9)SW
Manufacturing 37,618,352 155,672,376 147,424,706 1.056 1.000
Contracting 99,278,684 404,463,608 383,607,544 1.054 0.998
Office & Clerical 39,052,000 178,963,000 169,371,554 1.057 1.001
Goods & Services 135,155,171 600,601,192 567,812,617 1.058 1.002
Miscellaneous 72,472,715 336,933,829 319,656,797 1.054 0.998
Statewide 383,576,922 1,676,634,005 1,587,873,218 1.056
Page 67 of 127

NEVADA

APPENDIX A-IV
II. Industry Group Differentials

To calculate the converted indicated balanced losses (11) the reported losses are limited to $500,000 for a single claim
occurrence and $1,500,000 for each multiple claim occurrence. After the application of limited development, trend and benefit
factors, the limited losses are brought to an unlimited level through the application of the expected excess provision. The
proposed experience change, applicable loss-based expenses and any miscellaneous premium adjustments are applied to
calculate the indicated losses. These indicated losses are then balanced to the expected losses using the factors shown in
Appendix B-I, Section A-3.
(11) (12) (13) (14)
Converted Indicated/ Indicated
Indicated Expected Ratio Differential Lost-Time
Industry Group Balanced Losses (11)/[(8)x(10)] (12)IG/(12)SW Claim Counts
Manufacturing 144,926,383 0.983 0.982 2,450
Contracting 382,317,556 0.999 0.998 4,930
Office & Clerical 167,937,739 0.991 0.990 3,104
Goods & Services 559,639,414 0.984 0.983 12,945
Miscellaneous 334,832,431 1.050 1.049 4,245
Statewide 1,589,653,523 1.001
(15) (16) (17) (18)

Credibility Weighted
Full Credibility Credibility Indicated/Expected Final
Standard Minimum of Ratio Industry Group
for Lost-Time 1.000 and [(16)IGx(12)IG] + Differential
Industry Group Claim Counts ((14)/(15))^0.5 [1-(16)IG]x(12)SW* (17)IG/(17)SW
Manufacturing 12,000 0.45 0.993 0.994
Contracting 12,000 0.64 1.000 1.001
Office & Clerical 12,000 0.51 0.996 0.997
Goods & Services 12,000 1.00 0.984 0.985
Miscellaneous 12,000 0.59 1.030 1.031
Statewide 0.999 1.000
*Statewide ratio (column 17) = IG[(6)x(17)] ÷ IG(6)
Page 68 of 127

Nevada

Voluntary

Appendix B – Calculations Underlying the

Loss Cost Change by Classification
NCCI separately determines voluntary loss costs for each workers compensation classification.
The proposed change from the current loss cost will vary depending on the classification. The
following are the general steps utilized to determine the individual classification loss costs:
1. Calculate industry group differentials, which are used to more equitably distribute the
proposed overall average loss cost level change based on the individual experience of
each industry group
2. For each classification, determine the indicated pure premiums based on the most
recently-available five policy periods of Nevada payroll and loss experience
3. Indicated pure premiums are credibility-weighted with present on rate level pure
premiums and national pure premiums to generate derived by formula pure premiums
4. Final adjustments include the application of a test correction factor, the ratio of manual-
to-standard premium, and swing limits.
Page 69 of 127

NEVADA
APPENDIX B-I
Distribution of Loss Cost Level Change to Occupational Classification
After determining the required changes in the overall loss cost level for the state and by industry group, the next step in the ratemaking
procedure is to distribute these changes among the various occupational classifications. In order to do this, the pure premiums by
classification must be adjusted, by policy period, industry group, or on an overall basis, to incorporate the changes proposed in the filing.
There are three sets of pure premiums for each classification: indicated, present on rate level, and national pure premiums.
Section A – Calculation of Indicated Pure Premiums

The indicated pure premiums are calculated from the payroll and loss data reported, by class code and policy period, in the Workers
Compensation Statistical Plan (WCSP) for the latest available five policy periods. Various adjustments are made to these pure premiums
to put them at the level proposed in this filing (Sections A-1 to A-3).
Section A-1 – Calculation of Primary Conversion Factors

1. Limited Loss Development Factors
The following factors are applied to develop the losses from first through fifth report to an ultimate basis.
Indemnity Medical
Policy Period Not-Likely-to-
Likely-to-Develop Likely-to-Develop Not-Likely-to-Develop
Develop
1/13-12/13 1.292 1.050 1.341 1.031
1/14-12/14 1.324 1.058 1.373 1.039
1/15-12/15 1.385 1.077 1.411 1.049
1/16-12/16 1.557 1.124 1.467 1.057
1/17-12/17 2.364 1.285 1.625 1.040
2. Factors to Adjust to the Proposed Trend Level

The proposed trend factors are applied to adjust the losses to the proposed level.
Policy Period Indemnity Medical

1/13-12/13 0.778 0.745
1/14-12/14 0.802 0.772
1/15-12/15 0.826 0.800
1/16-12/16 0.852 0.829
1/17-12/17 0.878 0.859
3. Factors to Adjust to the Proposed Benefit Level

The following factors are applied to adjust the losses to the proposed benefit level.
Permanent Total Permanent Partial Temporary Total

Policy Period Fatal (P.T.) (P.P.) (T.T.) Medical
1/13-12/13 1.711 1.000 1.310 1.000 1.086
1/14-12/14 1.711 1.000 1.310 1.000 1.072
1/15-12/15 1.711 1.000 1.310 1.000 1.057
1/16-12/16 1.711 1.000 1.310 1.000 1.041
1/17-12/17 1.711 1.000 1.202 1.000 1.029
Page 70 of 127

NEVADA
APPENDIX B-I
4. Primary Conversion Factors: Indicated Pure Premiums

The factors above, contained within Section A-1, are combined multiplicatively, resulting in the following factors for the Likely-to-
Develop (L) and Not-Likely-to-Develop (NL) groupings.
Fatal Medical
Policy Period Fatal (L) P.T.* P.P. (L) P.P. (NL) T.T. (L) T.T. (NL) Medical (L)
(NL) (NL)
1/13-12/13 1.720 1.398 1.005 1.317 1.070 1.005 0.817 1.085 0.834
1/14-12/14 1.817 1.452 1.062 1.391 1.112 1.062 0.849 1.136 0.860
1/15-12/15 1.957 1.522 1.144 1.499 1.165 1.144 0.890 1.193 0.887
1/16-12/16 2.270 1.639 1.327 1.738 1.255 1.327 0.958 1.266 0.912
1/17-12/17 3.551 1.930 2.076 2.495 1.356 2.076 1.128 1.436 0.919
* Permanent total losses are always assigned to the Likely-to-Develop grouping.
Section A-2 – Expected Excess Provision and Redistribution

After the application of the primary conversion factors, the limited losses are brought to an expected unlimited level through the
application of excess loss factors by hazard group. These factors are shown below.
Hazard
A B C D E F G
Group
(1)
Excess 0.105 0.140 0.178 0.223 0.279 0.326 0.400
Ratios
(2)
Excess
1.117 1.163 1.217 1.287 1.387 1.484 1.667
Factors
1/(1-(1))
As the excess loss factors are on a combined (indemnity and medical) basis, a portion (40%) of the indemnity expected excess losses
are redistributed to medical in order to more accurately allocate expected excess losses. Since a portion of the expected excess losses
are redistributed in an additive manner, the expected excess factors shown above cannot be combined multiplicatively with either the
primary or secondary loss conversion factors.
Page 71 of 127

NEVADA
APPENDIX B-I
Section A-3 – Calculation of Secondary Conversion Factors

1. Factors to Adjust for Proposed Industry Group Differentials
The following factors are applied to adjust the indicated industry group differentials for the effects of credibility weighting the industry
group differentials and weighting the differentials by the latest year expected losses.
Office and Goods and

Manufacturing Contracting Clerical Services Miscellaneous
(1) Indicated Differentials* 0.982 0.998 0.990 0.983 1.049
(2) Final Differentials** 0.994 1.001 0.997 0.985 1.031
(3) Adjustment (2)/(1) 1.012 1.003 1.007 1.002 0.983
*See Appendix A-IV, column (13).
**See Appendix A-IV, column (18).
2. Factors to Balance Indicated to Expected Losses

The expected losses are calculated as the pure premium underlying the current loss costs, adjusted to the proposed level and adjusted
for the Experience Rating Plan off-balance. The indicated losses are balanced to the expected losses by applying the following factors.
(1)
Adjustment of (2) (3) (4) (5)
Indicated Losses Current Ratio of Proposed Ratio of Balancing
to Pure Premium Manual to Manual to Off-balance Indicated to
at Proposed Standard Standard Adjustment Expected Losses
Policy Period Level Premium Premium (2)/(3) (1)x(4)
1/13-12/13 0.932 1.104 1.098 1.005 0.937
1/14-12/14 0.953 1.103 1.103 1.000 0.953
1/15-12/15 0.920 1.103 1.108 0.995 0.915
1/16-12/16 0.902 1.103 1.111 0.993 0.896
1/17-12/17 0.940 1.103 1.102 1.001 0.941
3. Adjustment for Experience Change

A factor of 0.923 is applied to adjust for the experience change in the proposed loss cost level.
4. Factor to Reflect the Proposed Loss-Based Expense Provisions

A factor of 1.180 is applied to include the proposed loss-based expense provisions.
5. Secondary Conversion Factors: Indicated Pure Premiums

The factors above, contained within section A-3, are combined multiplicatively, resulting in the following factors:
Policy Period Manufacturing Contracting Office and Clerical Goods and Services Miscellaneous
1/13-12/13 1.033 1.024 1.028 1.023 1.003
1/14-12/14 1.050 1.041 1.045 1.040 1.020
1/15-12/15 1.009 1.000 1.004 0.999 0.980
1/16-12/16 0.988 0.979 0.983 0.978 0.959
1/17-12/17 1.037 1.028 1.032 1.027 1.007
Page 72 of 127

NEVADA
APPENDIX B-I
Section B – Calculation of Present on Rate Level Pure Premiums

The present on rate level pure premiums are the pure premiums underlying the current loss costs, adjusted to the proposed level. The
data sources for the above-captioned pure premiums are the partial pure premiums underlying the current loss costs.
1. Adjustment for Experience Change

A factor of 0.923 is applied to adjust for the experience change in the proposed loss cost level.

The pure premiums underlying the current loss costs contain the current trend. The change in trend factors, 1.040 and 0.981, for indemnity
and medical, respectively, are applied to adjust to the proposed trend level.
3. Factors to Adjust to the Proposed Benefit Level

The following factors are applied to adjust the pure premiums underlying the current loss costs to the proposed benefit level.
Effective Date Indemnity Medical

February 1, 2020 1.000 1.014
Final Benefit Adjustment 1.000 1.014
4. Factors to Include the Proposed Loss-Based Expense Provisions

The pure premiums underlying the current loss costs include the current loss-based expense provisions and must be adjusted to the
proposed level.
(a) Current (b) Proposed

Indemnity Medical Indemnity Medical
(1) Loss Adjustment Expense 1.170 1.170 1.180 1.180
(2) Loss-based Assessment 1.000 1.000 1.000 1.000
(3) = (1) + (2) – 1.000 1.170 1.170 1.180 1.180
(4) Overall Change (3b)/(3a) 1.009 1.009
5. Adjustment to Obtain Expected Losses

The pure premiums underlying the current loss costs reflect the current Experience Rating Plan off-balance. The change in off-balance
must be applied.
(1) (2) (3)

Current Ratio of Proposed Ratio of Off-balance
Manual to Standard Manual to Standard Adjustment
Industry Group Premium Premium (1)/(2)
Manufacturing 1.110 1.117 0.994
Contracting 1.116 1.114 1.002
Office & Clerical 1.061 1.064 0.997
Goods & Services 1.061 1.064 0.997
Miscellaneous 1.182 1.187 0.996
Page 73 of 127

NEVADA
APPENDIX B-I
6. Factors to Adjust for Proposed Industry Group Differentials

The pure premiums underlying the current loss costs are adjusted by the proposed industry group differentials.
(1) (2) (3)

Final Adjustment to Proposed for Adjusted Differential
Industry Group Differential* Current Relativities** (1)x(2)
Manufacturing 0.994 1.000 0.994
Contracting 1.001 0.998 0.999
Office & Clerical 0.997 1.001 0.998
Goods & Services 0.985 1.002 0.987
Miscellaneous 1.031 0.998 1.029
*See Appendix A-IV, column (18).
**See Appendix A-IV, column (10).
7. Combined Conversion Factors

The factors above, contained within Section B, are combined multiplicatively, resulting in the following factors.
Industry Group Indemnity Medical

Manufacturing 0.957 0.915
Contracting 0.970 0.927
Office & Clerical 0.964 0.921
Goods & Services 0.954 0.911
Miscellaneous 0.993 0.949
Page 74 of 127

NEVADA
APPENDIX B-I
Section C – Calculation of National Pure Premiums

Finally, there are the national pure premiums, which reflect the countrywide experience for each classification adjusted to state conditions.
These pure premiums reflect the countrywide experience for each classification as indicated by the latest available individual classification
experience for all states for which the National Council on Compensation Insurance compiles workers compensation data.
Countrywide data is adjusted to Nevada conditions in four steps. First, statewide indicated pure premiums are determined for Nevada.
Second, using Nevada payrolls as weights, corresponding statewide-average pure premiums are computed for each remaining state.
Third, the ratios of Nevada statewide pure premiums to those for other states are used as adjustment factors to convert losses for other
states to a basis that is consistent with the Nevada indicated pure premiums. The quotient of the countrywide total of such adjusted
losses divided by the total countrywide payroll for the classification is the initial pure premium indicated by national relativity. Finally,
national pure premiums are balanced to the level of the state indicated pure premiums to ensure unbiased derived by formula pure
premiums. Indemnity and medical pure premiums are computed separately.
Section D – Calculation of Derived by Formula Pure Premiums

The indicated, present on rate level and national pure premiums are credibility weighted, and the resulting derived by formula pure
premiums are used to determine the final class loss costs.
As for the preceding pure premiums, separate computations are performed for each partial pure premium: indemnity and medical. Each
partial formula pure premium is derived by the weighting of the indicated, present on rate level and national partial pure premiums. The
weight assigned to the policy year indicated pure premium varies in one-percent intervals from zero percent to one hundred percent,
depending upon the volume of expected losses (i.e. the product of the underlying pure premiums and the payroll in hundreds). To achieve
full state credibility, a classification must have expected losses of at least: $50,949,797 for indemnity and $22,052,974 for medical.
The partial credibilities formula is:
z = [ (expected losses) / (full credibility standard) ]0.5
For the national pure premiums, credibility is determined from the number of lost-time claims. Full credibility standards are: 2,300 lost-
time claims for indemnity and 2,000 lost-time claims for medical.
Partial credibilities are assigned using a credibility formula similar to that used for indicated pure premiums but based on the number of
national cases. In no case is the national credibility permitted to exceed 50% of the complement of the state credibility.
National Credibility equals the smaller of:
[ (national cases)/(full credibility standard) ]0.5 and [ (1 – state credibility)/2 ]
The residual credibility (100% minus the sum of the state and national credibilities) is assigned to the present on rate level pure premium.
For example, if the state credibility is 40%, the national pure premium is assigned a maximum credibility of 30% ((100-
40) / 2). The remainder is assigned to the present on rate level pure premium.
The total pure premium shown on the attached Appendix B-III is obtained by adding the indemnity and medical partial pure premiums
obtained above and rounding the sum to two decimal places.
Page 75 of 127

NEVADA
APPENDIX B-II
Adjustments to Obtain Loss Costs
The following items are combined with the derived by formula pure premium to obtain the proposed loss cost:
1. Test Correction Factor

The payrolls are now extended by the loss costs presently in effect and by the indicated loss costs to determine if the required
change in manual premium level as calculated in Exhibit I has been achieved. Since at first this calculation may not yield the
required results, an iterative process is initiated which continuously tests the proposed loss costs including tentative test
correction factors until the required change in manual premium level is obtained. The test correction factor is applied to the
derived by formula pure premiums.
The factors referred to above are set out as follows:
Test Correction
Factor
Manufacturing 1.0086
Contracting 0.9984
Miscellaneous 1.0005
2. Ratios of Manual to Standard Premiums

The ratios of manual to standard premiums by industry group have also been excluded from the classification experience, and
it is necessary to apply these factors to the derived by formula pure premiums.
Ratio of Manual
to Standard
Premiums
Manufacturing 1.117
Contracting 1.114
Miscellaneous 1.187
3. Disease Loadings
The proposed manual loss costs shown in this filing include specific disease loadings for those classifications where they
apply. The proposed specific disease loadings are shown on the footnotes page.
Page 76 of 127

NEVADA
APPENDIX B-II
4. Swing Limits
As a further step, a test is made to make certain that the proposed loss costs fall within the following departures from the
present loss costs:
Manufacturing from 14% above to 26% below

Contracting from 15% above to 25% below
Office & Clerical from 15% above to 25% below
Goods & Services from 13% above to 27% below
Miscellaneous from 18% above to 22% below
These limits have been calculated in accordance with the following formula:
Max. Deviation = Effect of the final change in loss cost level by industry group plus or minus 20% rounded to the nearest 1%.
The product of the swing limits and the present loss cost sets bounds for the proposed loss cost. If the calculated loss cost
falls outside of the bounds, the closest bound is chosen as the proposed loss cost. When a code is limited, the underlying
pure premiums are adjusted to reflect the limited loss cost. The classifications which have been so limited are shown below.
Note that classifications that are subject to special handling may fall outside of the swing limits. A code listed below with an
asterisk indicates the code’s swing limit was adjusted by one cent before being applied; this is only performed when the upper
and lower bounds calculated by the swing limit are equal.
An illustrative example showing the calculation of a proposed manual class loss cost is attached as Appendix B-III. This
example demonstrates the manner in which the partial pure premiums are combined to produce a total pure premium, and
shows the steps in the calculation at which the rounding takes place. The loss costs for other classifications are calculated in
the same manner.
List of Classifications Limited by the Upper Swing List of Classifications Limited by the Lower Swing
3865 4493 7222 8755 8856 9403 1624 3027
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APPENDIX B-III

Derivation of Proposed Loss Cost - Code 8810
As previously explained in Appendix B-I, the indicated pure premiums are developed by adjusting the limited losses by a set of conversion
factors. The converted losses are then summarized into indemnity and medical and then divided by payroll (in hundreds). The derivation
of the indicated pure premium for the above-captioned classification follows:
LIMITED LOSSES (Workers Compensation Statistical Plan)
Permanent Permanent Temporary Temporary

Fatal Fatal Permanent Partial Partial Total Total Medical Medical
Policy Period Likely Not-Likely Total Likely Not-Likely Likely Not-Likely Likely Not-Likely
01/01/13 - 12/31/13 0 0 0 877,870 1,312,582 190,040 541,915 791,731 2,191,604
01/01/14 - 12/31/14 0 0 0 315,727 817,920 271,136 464,354 464,865 2,067,234
01/01/15 - 12/31/15 0 0 0 354,400 1,155,279 406,411 950,978 870,948 2,717,872
01/01/16 - 12/31/16 0 0 0 1,051,687 940,898 511,233 498,629 1,064,429 2,320,688
01/01/17 - 12/31/17 0 511,031 0 47,272 553,160 497,996 335,283 471,360 2,048,775
PRIMARY CONVERSION FACTORS (Appendix B-I, Section A-1)

01/01/13 - 12/31/13 1.720 1.398 1.005 1.317 1.070 1.005 0.817 1.085 0.834
01/01/14 - 12/31/14 1.817 1.452 1.062 1.391 1.112 1.062 0.849 1.136 0.860
01/01/15 - 12/31/15 1.957 1.522 1.144 1.499 1.165 1.144 0.890 1.193 0.887
01/01/16 - 12/31/16 2.270 1.639 1.327 1.738 1.255 1.327 0.958 1.266 0.912
01/01/17 - 12/31/17 3.551 1.930 2.076 2.495 1.356 2.076 1.128 1.436 0.919
EXPECTED EXCESS PROVISION AND REDISTRIBUTION (Appendix B-I, Section A-2)
After the application of the primary conversion factors, the limited losses are brought to an expected unlimited
level through the application of a hazard group-specific excess loss factor. The factor is shown below:
HAZARD GROUP: C
Excess Factor 1.217
As the excess loss factor is on a combined (indemnity and medical) basis, the following portion of the indemnity
expected excess losses are redistributed to medical in order to more accurately allocate expected excess losses:
Redistribution % 40%
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APPENDIX B-III

EXPECTED UNLIMITED LOSSES (Limited Losses x Primary Conversion Factors, then adjusted for the Excess Provision and Redistribution)

01/01/13 - 12/31/13 0 0 0 1,306,371 1,586,940 215,805 500,269 1,161,733 2,383,600
01/01/14 - 12/31/14 0 0 0 496,237 1,027,699 325,358 445,459 705,424 2,275,729
01/01/15 - 12/31/15 0 0 0 600,269 1,520,769 525,341 956,336 1,350,327 3,122,678
01/01/16 - 12/31/16 0 0 0 2,065,317 1,334,248 766,549 539,752 1,856,461 2,718,434
01/01/17 - 12/31/17 0 1,114,436 0 133,268 847,541 1,168,164 427,337 923,211 2,473,700
SECONDARY CONVERSION FACTORS (Appendix B-I, Section A-3)
INDUSTRY GROUP:
Policy Period Office and Clerical
01/01/13 - 12/31/13 1.028
01/01/14 - 12/31/14 1.045
01/01/15 - 12/31/15 1.004
01/01/16 - 12/31/16 0.983
01/01/17 - 12/31/17 1.032
PAYROLL, FINAL CONVERTED LOSSES (Expected Unlimited Losses x Secondary Conversion Factors)
Indemnity Indemnity Medical Medical Total Total

Policy Period Payroll Likely Not-Likely Likely Not-Likely Indemnity Medical Total
01/01/13 - 12/31/13 4,026,768,281 1,564,797 2,145,651 1,194,262 2,450,341 3,710,448 3,644,603 7,355,051
01/01/14 - 12/31/14 4,018,132,424 858,567 1,539,450 737,168 2,378,137 2,398,017 3,115,305 5,513,322
01/01/15 - 12/31/15 4,397,672,983 1,130,112 2,487,013 1,355,728 3,135,169 3,617,125 4,490,897 8,108,022
01/01/16 - 12/31/16 4,579,846,403 2,783,724 1,842,142 1,824,901 2,672,221 4,625,866 4,497,122 9,122,988
01/01/17 - 12/31/17 4,890,294,542 1,343,078 2,465,772 952,754 2,552,858 3,808,850 3,505,612 7,314,462
Total 21,912,714,633 7,680,278 10,480,028 6,064,813 13,188,726 18,160,306 19,253,539 37,413,845
INDICATED PURE PREMIUM 0.083 0.088 0.17
The pure premiums shown were calculated using unrounded losses, while the converted losses have been rounded for display purposes.
The present on rate level pure premiums are developed by adjusting the pure premiums underlying the current loss cost
by the conversion factors calculated in Appendix B-I. The derivation of the present on rate level pure premiums for the
above-captioned classification follows:
Indemnity Medical Total

Pure Premiums Underlying Current Loss Cost 0.088 0.102 0.19
Conversion Factors (App. B-I, Section B) 0.964 0.921 xxx
PURE PREMIUMS PRESENT ON RATE LEVEL
(Underlying Pure Premiums) x (Conversion Factor) 0.085 0.094 0.18
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APPENDIX B-III

Industry Group - Office and Clerical, Hazard Group - C
The loss cost for the above-captioned classification is derived as follows:
1. Indicated Pure Premium 0.083 0.088 0.17
2. Pure Premium Indicated by National Relativity 0.075 0.081 0.16
3. Pure Premium Present on Rate Level 0.085 0.094 0.18
4. State Credibilities 61% 97% xxx
5. National Credibilities 19% 1% xxx
6. Residual Credibilities = 100% - (4) - (5) 20% 2% xxx
7. Derived by Formula Pure Premiums

= (1) x (4) + (2) x (5) + (3) x (6) 0.082 0.088 0.17
8. Test Correction Factor 1.0012 1.0012 xxx
9. Underlying Pure Premiums = (7) x (8) * 0.082 0.088 0.17
10. Ratio of Manual to Standard Premium 1.064
11. Loss Cost = (9) x (10) 0.18
12. Loss Cost Within Swing Limits 0.18
Current Loss Cost x Swing Limits

a) Lower bound = 0.20 x 0.750 = 0.15
b) Upper bound = 0.20 x 1.150 = 0.23
13. Pure Premiums Underlying Proposed Loss Cost* 0.082 0.088 0.17
= ((13TOT) / (9TOT)) x (9) , (13TOT) = (12) / (10)
14. Disease, Catastrophe and/or Miscellaneous Loadings 0.00
15. Final Loaded Loss Cost 0.18
* Indemnity pure premium is adjusted for the rounded total pure premium:
Indemnity Pure Premium = Total Pure Premium - Medical Pure Premium
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APPENDIX B-IV
I. Determination and Distribution of Premium Level Change to “F” Classifications

The Workers Compensation Statistical Plan (WCSP) data is used to determine the overall “F” classifications (F-class) premium level
change as well as the individual change by the various classifications. There are three sets of pure premiums for each classification:
indicated, present on rate level, and national pure premiums. All sets of pure premiums are adjusted to the common proposed level that
is explained further in this exhibit. These three sets of pure premiums are credibility weighted and the results, the derived by formula
pure premiums, are adjusted for additional proposed components (Section II) to determine the indicated loss costs. The payrolls are
extended by the loss costs presently in effect and by the indicated loss costs. The loss costs are limited to the swing limits based on 20%
above and 20% below the current loss costs. This results in the indicated loss cost level change of +4.7%.
Section A – Calculation of F-Class Indicated Pure Premiums

The payroll and loss data reported are from the WCSP data by class code for the latest available five policy periods.
Section A-1 – Calculation of Primary Conversion Factors

1. Factors to Adjust to the Proposed Benefit Levels
The state and federal losses are adjusted to the proposed state and federal benefit levels, respectively.
STATE ACT
1/13 - 12/13 1.711 1.000 1.310 1.000 1.086
1/14 - 12/14 1.711 1.000 1.310 1.000 1.072
1/15 - 12/15 1.711 1.000 1.310 1.000 1.057
1/16 - 12/16 1.711 1.000 1.310 1.000 1.041
1/17 - 12/17 1.711 1.000 1.202 1.000 1.029
FEDERAL ACT
1/13 - 12/13 1.000 1.000 1.000 1.000 1.000
1/14 - 12/14 1.000 1.000 1.000 1.000 1.000
1/15 - 12/15 1.000 1.000 1.000 1.000 1.000
1/16 - 12/16 1.000 1.000 1.000 1.000 1.000
1/17 - 12/17 1.000 1.000 1.000 1.000 1.000

The following factors are applied to trend the losses in each policy year to the proposed rating year. The selected annual
trends utilized were 0.970 and 0.965 for indemnity and medical, respectively.
Policy Period Indemnity Medical

1/13 - 12/13 0.778 0.745
1/14 - 12/14 0.802 0.772
1/15 - 12/15 0.826 0.800
1/16 - 12/16 0.852 0.829
1/17 - 12/17 0.878 0.859
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APPENDIX B-IV
Section A-1 Calculation of Primary Conversion Factors (continued)

3. Limited Loss Development Factors
The following factors are applied to develop the losses from first through fifth report to an ultimate basis utilizing countrywide
data.
Indemnity Medical
Policy Period Likely- Not-Likely- Likely- Not-Likely-
to-Develop to-Develop to-Develop to-Develop
1/13 - 12/13 1.085 1.041 1.184 1.029
1/14 - 12/14 1.110 1.055 1.228 1.028
1/15 - 12/15 1.278 1.110 1.305 1.029
1/16 - 12/16 1.477 1.255 1.374 1.065
1/17 - 12/17 2.319 1.811 1.594 1.141
4. Primary Conversion Factors = (1) x (2) x (3)

The factors above contained within Section A-1, are combined multiplicatively, resulting in the following factors for the Likely-to-
Develop (L) and Not-Likely-to-Develop (NL) groupings.
STATE ACT
Fatal Fatal P.P. P.P. T.T. T.T. Medical Medical
Policy Period (L) (NL) P.T.* (L) (NL) (L) (NL) (L) (NL)
1/13 - 12/13 1.444 1.386 0.844 1.106 1.061 0.844 0.810 0.958 0.833
1/14 - 12/14 1.523 1.448 0.890 1.166 1.108 0.890 0.846 1.016 0.851
1/15 - 12/15 1.806 1.569 1.056 1.383 1.201 1.056 0.917 1.104 0.870
1/16 - 12/16 2.153 1.830 1.258 1.649 1.401 1.258 1.069 1.186 0.919
1/17 - 12/17 3.484 2.721 2.036 2.447 1.911 2.036 1.590 1.409 1.009
FEDERAL ACT
Fatal Fatal P.P. P.P. T.T. T.T. Medical Medical
Policy Period (L) (NL) P.T.* (L) (NL) (L) (NL) (L) (NL)
1/13 - 12/13 0.844 0.810 0.844 0.844 0.810 0.844 0.810 0.882 0.767
1/14 - 12/14 0.890 0.846 0.890 0.890 0.846 0.890 0.846 0.948 0.794
1/15 - 12/15 1.056 0.917 1.056 1.056 0.917 1.056 0.917 1.044 0.823
1/16 - 12/16 1.258 1.069 1.258 1.258 1.069 1.258 1.069 1.139 0.883
1/17 - 12/17 2.036 1.590 2.036 2.036 1.590 2.036 1.590 1.369 0.980
* Permanent Total losses are always assigned to the Likely-to-Develop grouping.
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APPENDIX B-IV
Section A-2 – Expected Excess Provision and Redistribution

To reduce distortions in individual class loss cost indications, individual claim amounts are subject to a maximum limit of
$500,000. Multiple claim accidents are limited to three times the individual claim loss limitation. After the application of the
primary conversion factors, the limited losses are brought to an expected unlimited level through the application of excess loss
factors by hazard group. These factors are shown below.
Hazard Group A B C D E F G
(1)
0.105 0.140 0.178 0.223 0.279 0.326 0.400
Excess Ratios
(2)
Excess Factors 1.117 1.163 1.217 1.287 1.387 1.484 1.667
1/(1-(1))
As the excess loss factors are on a combined (indemnity and medical) basis, a portion (40%) of the indemnity expected excess
losses are redistributed to medical in order to more accurately allocate expected excess losses. Since a portion of the expected
excess losses are redistributed in an additive manner, the expected excess factors shown above cannot be combined
multiplicatively with either the primary or secondary loss conversion factors.
Section A-3 – Calculation of Secondary Conversion Factors

The following factors are applied to include the proposed loss-based expenses. The state losses are adjusted to reflect the
proposed loss-based expenses. The federal losses are adjusted to reflect the proposed USL&HW Special Fund Assessment
and loss adjustment expense. The combined** factors are based on a combined indemnity and medical loss-weighted average
of the above loss-based expenses by policy period.
Policy Period State Act Federal Act

1/13 - 12/13 1.180 1.244
1/14 - 12/14 1.180 1.238
1/15 - 12/15 1.180 1.239
1/16 - 12/16 1.180 1.236
1/17 - 12/17 1.180 1.235
** See Section B.3 for the indemnity and medical breakdown of the proposed loss-based expenses.
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APPENDIX B-IV
Section B – Present on Rate Level

The current underlying pure premiums have been adjusted for the removal of the current voluntary offset to convert to the statewide level
consistent with the indicated pure premiums. In addition, the pure premiums have been adjusted to reflect the proposed payroll limitation
offset.
1. Benefits
The underlying pure premiums are adjusted by the weighted impact of the proposed state and federal benefit levels. The
distribution of state and federal losses was used to determine the weighted effects.
State Weight (St%) 0.299

Federal Weight (Fed%) 0.701

(a) State Laws 1.000 1.014 1.007
(b) Federal Laws 1.000 1.000 1.000
(c) Weighted Laws = [(a)xSt%] + [(b)xFed%] 1.000 1.004 1.002
2. Trend
Since the trend in the current underlying pure premiums is adequate for the current rating year, additional trend is applied to
bring the underlyings to the proposed rating year.
Indemnity Medical
0.970 0.965
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APPENDIX B-IV
Section B – Present on Rate Level (continued)

3. Loss-Based Expenses
The current underlying pure premiums are adjusted to reflect the change in the weighted effect of the loss-based expense
provisions.
Proposed:
STATE ACT
(a) Loss Adjustment Expense 1.180 1.180 1.180
(b) Loss-Based Assessment 1.000 1.000 1.000
(c) Total = (a) + (b) - 1 1.180 1.180 1.180
FEDERAL ACT
(d) Loss Adjustment Expense 1.180 1.180 1.180
(e) Loss-Based Assessment 1.115 1.000 1.062
(f) Total = (d) + (e) - 1 1.295 1.180 1.242

(g) Weighted Proposed Expenses =
1.261 1.180 1.223
[(c) x St%] + [(f) x Fed%]
Current:
STATE ACT
(h) Loss Adjustment Expense 1.170 1.170 1.170
(i) Loss-Based Assessment 1.000 1.000 1.000
(j) Total = (h) + (i) - 1 1.170 1.170 1.170
FEDERAL ACT
(k) Loss Adjustment Expense 1.170 1.170 1.170
(l) Loss-Based Assessment 1.120 1.000 1.068
(m) Total = (k) + (l) - 1 1.290 1.170 1.238

(n) Weighted Current Expenses =
1.254 1.170 1.218
[(j) x St%] + [(m) x Fed%]
Change:

Weighted Expense Change in
1.006 1.009 1.004
Loss-Based Expenses = [(g) / (n)]
4. Conversion Factors = (1) x (2) x (3)

The factors have been applied multiplicatively resulting in the following factors.
Indemnity Medical
0.976 0.978
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APPENDIX B-IV
Section C – National Pure Premiums

The latest three years of state and federal losses for states in which NCCI compiles workers compensation data are separately
adjusted to the same level as the indicated and present on rate level pure premiums.
Class Code 9077

For Code 9077, the indicated, national and present on rate level pure premiums were calculated as described previously in Sections A,
B and C but using the non-appropriated benefit changes and the federal loss-based expenses.
Section D – Derived by Formula Pure Premiums

The derived by formula pure premiums are calculated by a process similar to that of the industrial codes, which is described in
Appendix B-I, Section D. To achieve full state credibility, a classification must have expected losses of at least: $114,597,000 for
indemnity and $48,728,000 for medical.
II. Calculation of Proposed Loss Costs

The following items are combined with the derived by formula pure premiums to obtain the proposed loss cost:
A. Composite Factor (1) x (2) 0.9860
1. Factor to Convert from Statewide Data to Voluntary Loss Cost 0.986

2. Test Correction Factor 1.0000
B. Ratio of Manual Premium to Earned Premium 1.241

(determined on a countrywide basis)
C. Swing Limits
No classifications were adjusted on account of swing limits.
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APPENDIX B-IV

The indicated pure premiums are developed by adjusting the limited losses by a set of conversion factors. The converted losses are then
summarized into indemnity and medical and then divided by payroll (in hundreds). The derivation of the indicated pure premium for the
above-captioned classification follows:
STATE ACT - LIMITED LOSSES (Workers Compensation Statistical Plan)

01/01/13 - 12/31/13 0 0 0 0 0 0 0 0 0
01/01/14 - 12/31/14 0 0 0 0 0 0 0 0 0
01/01/15 - 12/31/15 0 0 0 0 0 0 0 0 0
01/01/16 - 12/31/16 0 0 0 0 91,350 0 2,066 0 273,226
01/01/17 - 12/31/17 0 0 0 0 0 0 0 0 0
FEDERAL ACT - LIMITED LOSSES (Workers Compensation Statistical Plan)

01/01/13 - 12/31/13 0 0 0 0 0 0 0 0 0
01/01/14 - 12/31/14 0 0 0 0 0 0 0 0 0
01/01/15 - 12/31/15 0 0 0 0 0 0 0 0 0
01/01/16 - 12/31/16 0 0 0 0 0 0 0 0 0
01/01/17 - 12/31/17 0 0 0 0 0 0 0 0 0
STATE ACT - PRIMARY CONVERSION FACTORS (Appendix B-IV, Section A-1)

01/01/13 - 12/31/13 1.444 1.386 0.844 1.106 1.061 0.844 0.810 0.958 0.833
01/01/14 - 12/31/14 1.523 1.448 0.890 1.166 1.108 0.890 0.846 1.016 0.851
01/01/15 - 12/31/15 1.806 1.569 1.056 1.383 1.201 1.056 0.917 1.104 0.870
01/01/16 - 12/31/16 2.153 1.830 1.258 1.649 1.401 1.258 1.069 1.186 0.919
01/01/17 - 12/31/17 3.484 2.721 2.036 2.447 1.911 2.036 1.590 1.409 1.009
FEDERAL ACT - PRIMARY CONVERSION FACTORS (Appendix B-IV, Section A-1)

01/01/13 - 12/31/13 0.844 0.810 0.844 0.844 0.810 0.844 0.810 0.882 0.767
01/01/14 - 12/31/14 0.890 0.846 0.890 0.890 0.846 0.890 0.846 0.948 0.794
01/01/15 - 12/31/15 1.056 0.917 1.056 1.056 0.917 1.056 0.917 1.044 0.823
01/01/16 - 12/31/16 1.258 1.069 1.258 1.258 1.069 1.258 1.069 1.139 0.883
01/01/17 - 12/31/17 2.036 1.590 2.036 2.036 1.590 2.036 1.590 1.369 0.980
Page 87 of 127

NEVADA

APPENDIX B-IV

EXPECTED EXCESS PROVISION AND REDISTRIBUTION (Appendix B-IV, Section A-2)
After the application of the primary conversion factors, the limited losses are brought to an expected unlimited
level through the application of a hazard group-specific excess loss factor. The factor is shown below:
HAZARD GROUP: F
Excess Factor 1.484
As the excess loss factor is on a combined (indemnity and medical) basis, the following portion of the indemnity
expected excess losses are redistributed to medical in order to more accurately allocate expected excess losses:
Redistribution % 40%
STATE ACT - EXPECTED UNLIM LOSSES (Lim Losses x Primary Conv Factors, then adjusted for the Excess Provision and Redistribution)

01/01/13 - 12/31/13 0 0 0 0 0 0 0 0 0
01/01/14 - 12/31/14 0 0 0 0 0 0 0 0 0
01/01/15 - 12/31/15 0 0 0 0 0 0 0 0 0
01/01/16 - 12/31/16 0 0 0 0 165,122 0 2,850 0 397,733
01/01/17 - 12/31/17 0 0 0 0 0 0 0 0 0
FEDERAL ACT - EXPECTED UNLIM LOSSES (Lim Losses x Primary Conv Factors, then adjusted for the Excess Provision and Redistribution)

01/01/13 - 12/31/13 0 0 0 0 0 0 0 0 0
01/01/14 - 12/31/14 0 0 0 0 0 0 0 0 0
01/01/15 - 12/31/15 0 0 0 0 0 0 0 0 0
01/01/16 - 12/31/16 0 0 0 0 0 0 0 0 0
01/01/17 - 12/31/17 0 0 0 0 0 0 0 0 0
STATE ACT - SECONDARY CONVERSION FACTORS (Appendix B-IV, Section A-3)
INDUSTRY GROUP:
Policy Period F-Class
01/01/13 - 12/31/13 1.180
01/01/14 - 12/31/14 1.180
01/01/15 - 12/31/15 1.180
01/01/16 - 12/31/16 1.180
01/01/17 - 12/31/17 1.180
FEDERAL ACT - SECONDARY CONVERSION FACTORS (Appendix B-IV, Section A-3)
INDUSTRY GROUP:
Policy Period F-Class
01/01/13 - 12/31/13 1.244
01/01/14 - 12/31/14 1.238
01/01/15 - 12/31/15 1.239
01/01/16 - 12/31/16 1.236
01/01/17 - 12/31/17 1.235
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APPENDIX B-IV

TOTAL - PAYROLL, FINAL CONVERTED LOSSES
Indemnity Indemnity Medical Medical Total Total

Policy Period Payroll Likely Not-Likely Likely Not-Likely Indemnity Medical Total
01/01/13 - 12/31/13 169 0 0 0 0 0 0 0
01/01/14 - 12/31/14 67,104 0 0 0 0 0 0 0
01/01/15 - 12/31/15 101,700 0 0 0 0 0 0 0
01/01/16 - 12/31/16 369,688 0 198,207 0 469,325 198,207 469,325 667,532
01/01/17 - 12/31/17 322,895 0 0 0 0 0 0 0
Total 861,556 0 198,207 0 469,325 198,207 469,325 667,532
INDICATED PURE PREMIUM 23.006 54.474 77.48
The pure premiums shown were calculated using unrounded losses, while the converted losses have been rounded for display purposes.
The present on rate level pure premiums are developed by adjusting the pure premiums underlying the current loss
cost by the conversion factors. The derivation of the present on rate level pure premiums for the above-captioned
classification follows:

Pure Premiums Underlying Current Loss Cost* 8.139 7.579 15.72
Conversion Factors (Section B) 0.976 0.978 xxx
PURE PREMIUMS PRESENT ON RATE LEVEL
(Underlying Pure Premiums) x (Conversion Factor) 7.944 7.412 15.36
*The current underlying pure premiums have been adjusted for the removal of the current voluntary offset to convert to the
statewide level consistent with the indicated pure premiums. In addition, the pure premiums have been adjusted to reflect
the proposed payroll limitation offset.
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APPENDIX B-IV

Industry Group - F-Class, Hazard Group - F
The loss cost for the above-captioned classification is derived as follows:
1. Indicated Pure Premium 23.006 54.474 77.48
2. Pure Premium Indicated by National Relativity 3.752 4.251 8.00
3. Pure Premium Present on Rate Level 7.944 7.412 15.36
4. State Credibilities 2% 4% xxx
5. National Credibilities 18% 19% xxx
6. Residual Credibilities = 100% - (4) - (5) 80% 77% xxx
7. Derived by Formula Pure Premiums

= (1) x (4) + (2) x (5) + (3) x (6) 7.491 8.694 16.19
8. Composite Factor 0.9860 0.9860 xxx
9. Underlying Pure Premiums = (7) x (8) * 7.388 8.572 15.96
10. Ratio of Manual to Standard Premium 1.241
11. Loss Cost = (9) x (10) 19.81
12. Loss Cost Within Swing Limits 19.81
Current Loss Cost x Swing Limits

a) Lower bound = 18.63 x 0.800 = 14.91
b) Upper bound = 18.63 x 1.200 = 22.35
13. Pure Premiums Underlying Proposed Loss Cost* 7.388 8.572 15.96
= ((13TOT) / (9TOT)) x (9) , (13TOT) = (12) / (10)
14. Disease, Catastrophe and/or Miscellaneous Loadings 0.00
15. Final Loaded Loss Cost 19.81
* Indemnity pure premium is adjusted for the rounded total pure premium:
Indemnity Pure Premium = Total Pure Premium - Medical Pure Premium
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Nevada

Voluntary

Appendix C – Memoranda for Laws and Assessments
Appendix C provides details on changes affecting workers compensation benefit costs that are
not yet reflected in the on-level factors shown in Appendix A-I. Such changes may result from
annual updates in medical reimbursement levels or other changes that directly affect worker
compensation benefit levels. In addition, changes to the administration of the workers
compensation system, including benefit levels, may result from specific regulatory, legislative, or
judicial action. The overall effect of benefit changes displayed in Appendix C is calculated as of
the benefit effective date, which may differ from the overall impact on the filing as shown in the
Executive Summary.
The following changes affecting Nevada benefit levels are detailed in this section of the filing:
 Analysis of Nevada Medical Fee Schedule Changes, Effective February 1, 2020
 Longshore and Harbor Workers’ Compensation Act Assessment
Page 91 of 127

NEVADA
APPENDIX C-I

Analysis of the Nevada Medical Fee Schedule Updates, Effective February 1, 2020

NCCI estimates that the changes to the medical fee schedule in Nevada, effective February 1, 2020,
will result in an impact of +0.7% on overall workers compensation system costs.

SUMMARY OF CHANGES
The Nevada Division of Industrial Relations (DIR) has adopted changes to the Nevada Medical Fee
Schedule, effective February 1, 2020. The prior fee schedule was in effect from February 1, 2019 through
January 31, 2020. The adopted fee schedule applies the medical consumer price index (MCPI) increase
of +2.8% to:

 Professional Services conversion factors for all physician practice categories
 Maximum allowable reimbursements (MARs) for Nevada specific codes
 MARs for Ambulatory Surgical Center (ASC) reimbursements and Outpatient Hospital Surgical
reimbursement
o ASC services and surgical procedures performed in a hospital outpatient setting are
reimbursed according to a set of nine groups of Current Procedural Terminology (CPT)
codes and Healthcare Common Procedure Coding System (HCPCS) codes, as published
by the Nevada DIR.

ACTUARIAL ANALYSIS
NCCI’s methodology to evaluate the impact of medical fee schedule changes includes three major steps:

1. Calculate the percentage change in maximum reimbursements
 Compare the prior and revised maximum reimbursements by procedure code to
determine the percentage change by procedure code.
 Calculate the weighted‐average percentage change in maximum reimbursements for
the fee schedule using observed payments by procedure code as weights.

2. Determine the share of costs that are subject to the fee schedule
 The share is based on a combination of fields, such as procedure code, provider type,
and place of service, as reported on the NCCI Medical Data Call, to categorize payments
that are subject to the fee schedule.
 The share is calculated as the greater of the percent of observed payments with a
maximum allowable reimbursement (MAR) or 75%. NCCI assumes no change for the
share of costs not subject to the fee schedule.

3. Estimate the price level change as a result of the revised fee schedule
 NCCI research by David Colón and Paul Hendrick, “The Impact of Fee Schedule Updates
on Physician Payments” (2018), suggests that approximately 80% of the change in
maximum reimbursements for physician fee schedules is realized on payments impacted
by the change.
Page 92 of 127

NEVADA
APPENDIX C-I

In this analysis, NCCI relies primarily on two data sources:
 Detailed medical data underlying the calculations in this analysis are based on NCCI’s
Medical Data Call for Nevada for Service Year 2018.
 The share of benefit costs attributed to medical benefits is based on NCCI’s Financial Call
data for Nevada from Policy Years 2016 and 2017 projected to the effective date of the
benefit changes.

SUMMARY OF IMPACTS
The impacts from the fee schedule changes in Nevada, effective February 1, 2020, are summarized
below.

(A) (B) (C) = (A) x (B)
Impact on Share of Impact on
Type of Service Type of Service Medical Costs Medical Costs
Physician +2.1% 51.6% +1.1%
ASC +2.1% 3.6% +0.1%
Nevada State Specific Codes +2.2% 7.4% +0.2%
Hospital Outpatient Surgery +1.7% 2.3% +0.0%

Combined Impact on Medical Costs (D) = Total of (C) +1.4%
Medical Costs as a Share of Overall Costs (E) 50%
Combined Impact on Overall Costs (F) = (D) x (E) +0.7%

Refer to the appendix for the weighted‐average changes in MARs by physician practice category, the
share of costs subject to the fee schedule by type of service, and the weighted‐average change in MAR
by type of service.

ADDITIONAL CONSIDERATIONS
Maximum reimbursement for dental services is also governed by the fee schedule in Nevada. The share
of these payments with a MAR makes up a small portion of medical costs. Therefore, the impact on
overall costs due to updating the fee schedule for these services is not anticipated to be material. As
such, any potential impact from this change will be realized in future loss experience and reflected in
subsequent NCCI loss cost filings in Nevada.

Page 93 of 127

NEVADA
APPENDIX C-I

APPENDIX
Weighted‐Average Percentage Change in MARs Prior to Price Realization by Physician Practice
Category

Share of Percentage Change
Physician Practice Category Physician Costs in MARs
Anesthesia 3.4% +2.8%
Surgery 25.9% +2.8%
Radiology and Nuclear Medicine 12.8% +2.8%
Pathology 1.1% +2.8%
General Medicine 48.8% +2.8%
Physician Payments with no specific MAR 8.0% 0.0%
Total 100.0% +2.6%

Share of Costs Subject to the Fee Schedule and Weighted‐Average Percentage Change in MARs
by Type of Service

Share of Costs Subject to Percentage Change Impact after 80%
Type of Service the Fee Schedule in MARs Price Realization
Physician 92.0% +2.6% +2.1%
Nevada State Specific Code 97.6% +2.7% +2.2%
ASC 92.9% +2.6% +2.1%
Hospital Outpatient Surgery 73.5%1 +2.1% +1.7%

1 Nonsurgical medical hospital outpatient services do not have MARs under the hospital outpatient fee schedule. As a result,
the share subject to the fee schedule was not subject to a 75% minimum.
Page 94 of 127

NEVADA
APPENDIX C-II
U.S. Longshore and Harbor Workers' Compensation Act Assessment
The F-class and Program II, Option II maritime class voluntary loss costs
and assigned risk rates include the following provision for the federal assessment:
1.) Estimated Total Expense Needed for 2020 * 94,000,000
2.) Compensation Payments Reported (on indemnity only) in 2019 * 820,509,290
3.) Assessment Rate on Indemnity Losses (1) / (2) 11.5%
Breakdown of Losses Under the Longshore and Harbor Workers Act
4.) Indemnity Losses (Combination of 1st through 3rd reports) # 39,408,883
5.) Medical Losses (Combination of 1st through 3rd reports) # 33,568,865
6.) Total Losses (4) + (5) 72,977,748
7.) Assessment Rate on Total Losses { (3) x (4) } / (6) 6.2%
* Source: U.S. Department of Labor
# Source: On-leveled and developed USL&HW losses - statistical plan data
Page 95 of 127

Nevada

Voluntary

Appendix D – Advisory Loss Costs Comparison
Appendix D provides a comparison of the current and proposed advisory loss costs.
Page 96 of 127
NEVADA

APPENDIX D

Advisory Loss Costs Comparison

Class Current Proposed Percent

Code 09/01/20 03/01/21 Change
0005 2.99 2.73 -8.7%

0008 1.94 1.84 -5.2%
0016 4.29 4.06 -5.4%
0034 2.55 2.54 -0.4%
0035 1.81 1.62 -10.5%
0036 3.72 3.59 -3.5%
0037 2.59 2.61 0.8%
0042 4.13 3.89 -5.8%
0050 4.20 4.07 -3.1%
0079 2.84 2.63 -7.4%
0083 8.06 6.33 -21.5%
0106 14.98 13.48 -10.0%
0113 3.00 2.96 -1.3%
0169 5.68 5.11 -10.0%
0170 2.13 1.96 -8.0%
0251 3.63 3.56 -1.9%
0401 8.80 8.04 -8.6%
0771 0.50 0.45 -10.0%
0908 151.00 142.00 -6.0%
0913 369.00 352.00 -4.6%
0917 2.90 2.52 -13.1%
1005 7.14 7.48 4.8%
1016 12.01 13.07 8.8%
1164 4.20 3.60 -14.3%
1165 3.77 3.56 -5.6%
1320 2.52 2.24 -11.1%
1322 6.07 6.02 -0.8%
1430 3.93 3.57 -9.2%
1438 4.16 4.41 6.0%
1452 2.16 2.39 10.6%
1463 12.19 10.23 -16.1%
1472 2.80 2.67 -4.6%
1624 4.90 3.83 -21.8%
1642 3.45 3.00 -13.0%
1654 5.20 4.83 -7.1%
1699 3.16 3.00 -5.1%
1701 3.32 2.83 -14.8%
1710 4.86 4.68 -3.7%
1747 1.93 1.80 -6.7%
1748 4.30 4.26 -0.9%
1803 5.96 5.73 -3.9%
1924 2.16 2.08 -3.7%
1925 3.09 3.03 -1.9%
2002 2.50 2.49 -0.4%
2003 2.92 2.61 -10.6%
2014 4.17 4.08 -2.2%
Page 97 of 127
NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
2016 2.35 2.14 -8.9%

2021 2.39 2.59 8.4%
2039 2.02 2.02 0.0%
2041 2.32 2.22 -4.3%
2065 1.72 1.56 -9.3%
2070 3.73 3.62 -2.9%
2081 2.72 2.49 -8.5%
2089 3.40 3.00 -11.8%
2095 2.99 3.22 7.7%
2105 3.11 3.32 6.8%
2110 1.99 1.83 -8.0%
2111 2.21 1.95 -11.8%
2112 4.06 3.53 -13.1%
2114 2.64 2.42 -8.3%
2121 1.14 1.12 -1.8%
2130 1.78 1.66 -6.7%
2131 1.81 1.64 -9.4%
2143 2.49 2.35 -5.6%
2157 4.03 3.83 -5.0%
2172 1.42 1.35 -4.9%
2174 2.30 2.31 0.4%
2211 5.18 4.95 -4.4%
2220 1.64 1.62 -1.2%
2288 3.23 3.03 -6.2%
2302 1.45 1.42 -2.1%
2305 1.93 1.87 -3.1%
2361 1.75 1.56 -10.9%
2362 1.61 1.69 5.0%
2380 1.90 1.78 -6.3%
2388 1.14 1.07 -6.1%
2402 2.33 2.21 -5.2%
2413 1.94 2.00 3.1%
2416 1.64 1.63 -0.6%
2417 1.03 1.01 -1.9%
2501 1.76 1.82 3.4%
2503 2.04 1.68 -17.6%
2570 3.30 3.05 -7.6%
2585 2.84 2.75 -3.2%
2586 2.43 2.44 0.4%
2587 2.72 2.62 -3.7%
2589 1.83 1.73 -5.5%
2600 3.70 3.79 2.4%
2623 6.47 5.91 -8.7%
2651 1.65 1.61 -2.4%
2660 2.11 2.07 -1.9%
2683 1.85 1.82 -1.6%
Page 98 of 127
NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
2688 2.40 2.29 -4.6%

2702 19.21 19.37 0.8%
2709 11.11 10.09 -9.2%
2710 8.18 8.33 1.8%
2714 4.20 3.82 -9.0%
2727 5.93 5.80 -2.2%
2731 3.54 3.26 -7.9%
2735 3.41 3.34 -2.1%
2759 5.17 5.45 5.4%
2790 3.01 2.60 -13.6%
2797 3.41 3.11 -8.8%
2799 4.69 4.23 -9.8%
2802 5.03 5.18 3.0%
2835 2.09 2.02 -3.3%
2836 2.26 2.41 6.6%
2841 3.23 3.08 -4.6%
2881 2.36 2.25 -4.7%
2883 3.69 3.38 -8.4%
2915 3.19 2.95 -7.5%
2916 3.02 2.71 -10.3%
2923 1.93 1.70 -11.9%
2960 4.06 3.89 -4.2%
3004 1.59 1.44 -9.4%
3018 4.34 3.42 -21.2%
3022 3.43 3.12 -9.0%
3027 3.29 2.44 -25.8%
3028 2.86 2.60 -9.1%
3030 5.29 4.69 -11.3%
3040 4.86 4.57 -6.0%
3041 3.27 3.11 -4.9%
3042 3.62 3.62 0.0%
3064 3.66 3.45 -5.7%
3076 2.83 2.64 -6.7%
3081 4.25 4.20 -1.2%
3082 3.89 3.42 -12.1%
3085 5.18 5.48 5.8%
3110 3.56 3.52 -1.1%
3111 1.93 1.76 -8.8%
3113 1.52 1.37 -9.9%
3114 2.29 2.20 -3.9%
3118 1.64 1.49 -9.1%
3119 0.71 0.75 5.6%
3122 1.80 1.71 -5.0%
3126 1.35 1.27 -5.9%
3131 1.60 1.47 -8.1%
3132 2.36 2.27 -3.8%
Page 99 of 127
NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
3145 1.80 1.75 -2.8%

3146 2.20 2.03 -7.7%
3169 2.53 2.32 -8.3%
3179 2.03 1.90 -6.4%
3180 2.01 1.83 -9.0%
3188 1.78 1.61 -9.6%
3220 1.65 1.59 -3.6%
3224 2.94 2.95 0.3%
3227 2.54 2.31 -9.1%
3240 2.29 2.21 -3.5%
3241 2.33 2.12 -9.0%
3255 1.99 1.95 -2.0%
3257 2.29 2.21 -3.5%
3270 2.45 2.27 -7.3%
3300 3.62 3.52 -2.8%
3303 2.19 1.97 -10.0%
3307 2.92 2.52 -13.7%
3315 3.46 3.18 -8.1%
3334 2.28 2.11 -7.5%
3336 2.29 2.17 -5.2%
3365 2.87 2.65 -7.7%
3372 2.68 2.49 -7.1%
3373 3.54 3.27 -7.6%
3383 1.62 1.56 -3.7%
3385 0.74 0.76 2.7%
3400 3.07 3.22 4.9%
3507 2.44 2.26 -7.4%
3515 2.11 1.97 -6.6%
3548 0.93 0.86 -7.5%
3559 2.31 2.22 -3.9%
3574 1.17 1.06 -9.4%
3581 0.92 0.90 -2.2%
3612 1.85 1.54 -16.8%
3620 3.46 3.50 1.2%
3629 1.28 1.22 -4.7%
3632 2.44 2.06 -15.6%
3634 1.59 1.40 -11.9%
3635 2.14 1.93 -9.8%
3638 1.90 1.70 -10.5%
3642 1.11 1.13 1.8%
3643 1.52 1.50 -1.3%
3647 1.99 2.08 4.5%
3648 1.51 1.53 1.3%
3681 0.68 0.66 -2.9%
3685 0.91 0.80 -12.1%
3719 0.88 0.80 -9.1%
Page 100 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
3724 2.64 2.71 2.7%

3726 2.34 2.38 1.7%
3803 2.09 2.07 -1.0%
3807 2.12 2.10 -0.9%
3808 2.87 2.55 -11.1%
3821 3.96 3.68 -7.1%
3822 2.94 2.84 -3.4%
3824 4.12 3.73 -9.5%
3826 1.20 0.93 -22.5%
3827 1.86 1.74 -6.5%
3830 0.90 0.88 -2.2%
3851 2.21 1.88 -14.9%
3865 1.42 1.61 13.4%
3881 3.27 3.05 -6.7%
4000 4.87 4.33 -11.1%
4021 3.80 3.42 -10.0%
4024 3.16 3.43 8.5%
4034 4.67 4.48 -4.1%
4036 2.13 1.81 -15.0%
4038 1.99 1.85 -7.0%
4062 2.22 2.11 -5.0%
4101 4.41 4.42 0.2%
4109 0.40 0.37 -7.5%
4110 0.71 0.69 -2.8%
4111 1.43 1.43 0.0%
4114 2.44 2.37 -2.9%
4130 3.42 3.51 2.6%
4131 4.33 4.09 -5.5%
4133 1.99 1.97 -1.0%
4149 0.60 0.55 -8.3%
4206 2.53 2.51 -0.8%
4207 1.68 1.68 0.0%
4239 1.85 1.82 -1.6%
4240 3.03 2.76 -8.9%
4243 1.83 1.74 -4.9%
4244 2.62 2.85 8.8%
4250 1.61 1.45 -9.9%
4251 2.19 2.22 1.4%
4263 2.31 2.45 6.1%
4273 2.25 2.18 -3.1%
4279 2.28 2.11 -7.5%
4283 1.24 1.13 -8.9%
4299 1.71 1.54 -9.9%
4304 3.10 3.12 0.6%
4307 1.42 1.36 -4.2%
4351 0.75 0.75 0.0%
Page 101 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
4352 2.90 2.60 -10.3%

4361 1.00 0.92 -8.0%
4410 2.49 2.40 -3.6%
4420 3.30 3.12 -5.5%
4431 1.30 1.21 -6.9%
4432 0.83 0.77 -7.2%
4452 2.55 2.40 -5.9%
4459 2.56 2.46 -3.9%
4470 2.20 2.12 -3.6%
4484 2.55 2.42 -5.1%
4493 2.59 2.95 13.9%
4511 0.71 0.61 -14.1%
4557 1.89 1.89 0.0%
4558 1.89 1.75 -7.4%
4568 2.00 1.81 -9.5%
4581 0.82 0.79 -3.7%
4583 4.94 3.88 -21.5%
4611 0.91 0.94 3.3%
4635 2.58 2.37 -8.1%
4653 1.39 1.40 0.7%
4665 7.07 6.57 -7.1%
4683 3.83 3.75 -2.1%
4686 1.98 1.83 -7.6%
4692 0.57 0.55 -3.5%
4693 0.74 0.74 0.0%
4703 1.74 1.61 -7.5%
4717 1.90 1.84 -3.2%
4720 1.98 1.92 -3.0%
4740 2.63 2.26 -14.1%
4741 2.29 2.13 -7.0%
4751 1.52 1.68 10.5%
4771 2.85 2.54 -10.9%
4777 3.12 2.79 -10.6%
4825 1.11 0.88 -20.7%
4828 2.40 1.92 -20.0%
4829 1.81 1.63 -9.9%
4902 2.43 2.10 -13.6%
4923 1.23 1.20 -2.4%
5020 4.27 4.02 -5.9%
5022 5.18 5.26 1.5%
5037 9.92 9.38 -5.4%
5040 5.86 5.57 -4.9%
5057 5.08 3.88 -23.6%
5059 13.43 13.40 -0.2%
5102 4.90 4.78 -2.4%
5146 3.98 4.00 0.5%
Page 102 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
5160 1.63 1.54 -5.5%

5183 4.06 3.41 -16.0%
5188 2.78 2.58 -7.2%
5190 2.18 2.02 -7.3%
5191 0.95 1.02 7.4%
5192 2.49 2.20 -11.6%
5213 5.38 5.34 -0.7%
5215 4.03 3.74 -7.2%
5221 4.01 3.85 -4.0%
5222 7.85 7.14 -9.0%
5223 4.34 3.60 -17.1%
5348 3.17 3.21 1.3%
5402 3.74 4.03 7.8%
5403 5.04 4.72 -6.3%
5437 4.71 4.55 -3.4%
5443 3.07 2.83 -7.8%
5445 4.59 4.11 -10.5%
5462 5.42 5.18 -4.4%
5472 4.74 4.27 -9.9%
5473 6.48 5.85 -9.7%
5474 4.34 4.03 -7.1%
5478 3.21 3.10 -3.4%
5479 4.79 4.51 -5.8%
5480 4.54 4.67 2.9%
5491 1.61 1.49 -7.5%
5506 6.02 5.08 -15.6%
5507 3.98 3.78 -5.0%
5535 5.68 5.37 -5.5%
5537 4.29 3.95 -7.9%
5551 7.52 7.22 -4.0%
5606 1.28 1.10 -14.1%
5610 3.39 3.24 -4.4%
5645 7.28 7.93 8.9%
5703 10.38 10.33 -0.5%
5705 11.05 10.13 -8.3%
5951 0.33 0.34 3.0%
6003 5.91 5.58 -5.6%
6005 3.23 3.00 -7.1%
6018 2.28 2.19 -3.9%
6045 3.62 3.65 0.8%
6204 4.70 4.34 -7.7%
6206 2.20 2.27 3.2%
6213 1.14 1.05 -7.9%
6214 1.52 1.40 -7.9%
6216 4.06 3.94 -3.0%
6217 3.62 3.60 -0.6%
Page 103 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
6229 3.53 3.35 -5.1%

6233 3.33 2.55 -23.4%
6235 7.85 6.73 -14.3%
6236 5.73 5.35 -6.6%
6237 1.12 1.05 -6.3%
6251 5.41 4.71 -12.9%
6252 4.31 4.92 14.2%
6306 5.06 4.30 -15.0%
6319 3.71 3.34 -10.0%
6325 3.54 2.99 -15.5%
6400 4.14 3.92 -5.3%
6503 1.94 1.87 -3.6%
6504 2.71 2.51 -7.4%
6702 3.51 3.24 -7.7%
6703 4.66 4.41 -5.4%
6704 3.90 3.60 -7.7%
6801 6.61 6.48 -2.0%
6811 5.85 6.01 2.7%
6824 11.70 10.66 -8.9%
6826 7.11 6.75 -5.1%
6834 3.43 3.00 -12.5%
6836 3.97 3.75 -5.5%
6843 12.20 12.79 4.8%
6845 7.02 6.85 -2.4%
6854 5.08 4.88 -3.9%
6872 12.58 11.39 -9.5%
6874 20.57 19.92 -3.2%
6882 3.44 3.24 -5.8%
6884 4.72 4.50 -4.7%
7016 4.44 4.54 2.3%
7024 4.93 5.04 2.2%
7038 5.05 4.51 -10.7%
7046 7.37 7.24 -1.8%
7047 5.16 6.17 19.6%
7050 6.80 6.13 -9.9%
7090 5.61 5.01 -10.7%
7098 8.19 8.04 -1.8%
7099 9.70 9.84 1.4%
7133 2.87 3.06 6.6%
7151 3.49 3.72 6.6%
7152 4.65 5.06 8.8%
7153 3.87 4.13 6.7%
7219 5.98 6.16 3.0%
7222 7.17 8.46 18.0%
7225 5.63 5.50 -2.3%
7230 7.66 7.94 3.7%
Page 104 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
7231 7.16 7.00 -2.2%

7232 8.83 8.31 -5.9%
7309 14.78 13.65 -7.6%
7313 5.98 5.85 -2.2%
7317 12.32 11.47 -6.9%
7327 24.53 24.30 -0.9%
7333 4.00 3.93 -1.8%
7335 4.44 4.37 -1.6%
7337 5.25 5.35 1.9%
7350 18.63 19.81 6.3%
7360 3.79 3.83 1.1%
7370 4.78 4.50 -5.9%
7382 4.73 4.36 -7.8%
7390 3.15 3.11 -1.3%
7394 10.40 9.59 -7.8%
7395 11.56 10.66 -7.8%
7398 13.77 13.05 -5.2%
7402 0.21 0.20 -4.8%
7403 3.76 3.63 -3.5%
7405 1.39 1.28 -7.9%
7408 0.58 0.56 -3.4%
7420 5.97 5.82 -2.5%
7421 0.77 0.80 3.9%
7422 2.41 2.56 6.2%
7425 4.57 3.58 -21.7%
7431 1.06 1.08 1.9%
7445 0.75 0.69 -8.0%
7453 0.57 0.58 1.8%
7502 1.94 1.82 -6.2%
7515 1.50 1.27 -15.3%
7520 2.91 2.75 -5.5%
7538 4.20 3.34 -20.5%
7539 2.39 2.14 -10.5%
7540 3.31 2.93 -11.5%
7580 2.81 2.83 0.7%
7590 4.65 3.98 -14.4%
7600 4.72 4.63 -1.9%
7605 1.94 1.72 -11.3%
7610 0.67 0.64 -4.5%
7705 5.15 4.55 -11.7%
7710 4.82 5.14 6.6%
7711 0.93 0.89 -4.3%
7720 4.72 4.47 -5.3%
7723 2.72 2.59 -4.8%
7726 0.31 0.30 -3.2%
7855 2.89 2.67 -7.6%
Page 105 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
8001 1.90 1.77 -6.8%

8002 1.67 1.62 -3.0%
8006 1.76 1.66 -5.7%
8008 0.74 0.71 -4.1%
8010 1.29 1.32 2.3%
8013 0.32 0.31 -3.1%
8015 0.85 0.65 -23.5%
8017 1.09 1.01 -7.3%
8018 2.20 2.10 -4.5%
8021 2.15 2.01 -6.5%
8031 2.02 1.80 -10.9%
8032 1.46 1.43 -2.1%
8033 1.71 1.59 -7.0%
8037 1.28 1.23 -3.9%
8039 1.03 0.90 -12.6%
8044 2.24 2.02 -9.8%
8045 0.67 0.62 -7.5%
8046 1.59 1.50 -5.7%
8047 0.68 0.62 -8.8%
8058 1.73 1.70 -1.7%
8072 0.58 0.55 -5.2%
8102 1.61 1.45 -9.9%
8103 1.86 1.92 3.2%
8106 4.52 4.02 -11.1%
8107 2.80 2.60 -7.1%
8111 1.46 1.34 -8.2%
8116 1.81 1.71 -5.5%
8203 4.80 4.50 -6.3%
8204 3.21 3.15 -1.9%
8209 2.80 2.63 -6.1%
8215 2.58 2.40 -7.0%
8227 4.63 3.75 -19.0%
8232 4.92 4.49 -8.7%
8233 2.51 2.33 -7.2%
8235 3.49 3.16 -9.5%
8263 5.59 4.88 -12.7%
8264 4.38 3.82 -12.8%
8265 6.46 6.29 -2.6%
8279 6.03 4.93 -18.2%
8288 4.92 4.75 -3.5%
8291 2.42 2.17 -10.3%
8292 2.32 2.16 -6.9%
8293 8.86 8.14 -8.1%
8304 3.76 3.81 1.3%
8350 6.32 6.13 -3.0%
8380 2.12 1.94 -8.5%
Page 106 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
8381 1.88 1.57 -16.5%

8385 1.42 1.43 0.7%
8392 1.56 1.43 -8.3%
8393 1.63 1.44 -11.7%
8500 4.29 4.50 4.9%
8601 0.47 0.44 -6.4%
8602 1.58 1.43 -9.5%
8603 0.14 0.13 -7.1%
8606 1.63 1.53 -6.1%
8709 6.92 6.68 -3.5%
8719 1.78 1.63 -8.4%
8720 1.21 1.22 0.8%
8721 0.53 0.59 11.3%
8723 0.23 0.20 -13.0%
8725 2.03 2.02 -0.5%
8726 3.05 3.16 3.6%
8734 0.74 0.72 -2.7%
8737 0.67 0.64 -4.5%
8738 0.90 0.88 -2.2%
8742 0.55 0.53 -3.6%
8745 2.92 2.39 -18.2%
8748 0.66 0.62 -6.1%
8755 0.37 0.42 13.5%
8799 0.54 0.53 -1.9%
8800 2.09 2.03 -2.9%
8803 0.07 0.06 -14.3%
8805 0.27 0.24 -11.1%
8810 0.20 0.18 -10.0%
8814 0.24 0.22 -8.3%
8815 0.30 0.30 0.0%
8820 0.20 0.18 -10.0%
8824 2.40 2.17 -9.6%
8825 1.37 1.26 -8.0%
8826 2.20 1.85 -15.9%
8829 1.49 1.35 -9.4%
8831 0.98 0.92 -6.1%
8832 0.42 0.40 -4.8%
8833 0.86 0.81 -5.8%
8835 1.54 1.31 -14.9%
8855 0.21 0.20 -4.8%
8856 0.53 0.60 13.2%
8861 0.84 0.79 -6.0%
8868 0.42 0.41 -2.4%
8869 1.20 1.16 -3.3%
8871 0.11 0.10 -9.1%
8901 0.22 0.20 -9.1%
Page 107 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
9012 1.10 1.10 0.0%

9014 2.27 2.03 -10.6%
9015 2.58 2.38 -7.8%
9016 2.23 2.21 -0.9%
9019 2.58 2.69 4.3%
9022 0.71 0.64 -9.9%
9033 1.69 1.50 -11.2%
9040 2.94 2.71 -7.8%
9052 1.72 1.63 -5.2%
9058 0.90 0.84 -6.7%
9060 1.15 1.07 -7.0%
9061 0.92 0.83 -9.8%
9063 0.73 0.63 -13.7%
9077 2.10 2.11 0.5%
9082 0.71 0.64 -9.9%
9083 0.75 0.77 2.7%
9084 0.89 0.85 -4.5%
9088 1.71 1.69 -1.2%
9089 0.79 0.70 -11.4%
9093 1.07 0.93 -13.1%
9101 2.10 2.02 -3.8%
9102 2.41 2.27 -5.8%
9110 1.49 1.51 1.3%
9150 0.20 0.19 -5.0%
9154 1.76 1.69 -4.0%
9156 3.47 3.55 2.3%
9170 6.68 6.51 -2.5%
9178 4.65 4.61 -0.9%
9179 18.44 16.90 -8.4%
9180 4.99 4.81 -3.6%
9182 1.89 1.89 0.0%
9186 15.04 12.95 -13.9%
9220 3.42 3.31 -3.2%
9402 4.88 4.65 -4.7%
9403 9.23 10.89 18.0%
9410 1.82 1.85 1.6%
9450 0.44 0.40 -9.1%
9452 1.00 0.96 -4.0%
9453 2.48 2.48 0.0%
9501 2.45 2.68 9.4%
9505 3.07 2.93 -4.6%
9516 2.22 1.98 -10.8%
9519 3.40 3.21 -5.6%
9521 3.47 3.32 -4.3%
9522 1.72 1.65 -4.1%
9534 3.44 3.30 -4.1%
Page 108 of 127

NEVADA

APPENDIX D



Code 09/01/20 03/01/21 Change
9554 6.15 5.88 -4.4%

9586 0.33 0.31 -6.1%
9600 2.04 1.99 -2.5%
9609 0.39 0.37 -5.1%
9620 1.44 1.46 1.4%
9661 1.74 1.76 1.1%
Page 109 of 127


Nevada

Voluntary

Appendix E – Determination of Assigned Risk Rates

Overall Proposed Change to Assigned Risk Rate Level
NCCI applies an assigned risk loss cost multiplier to the voluntary market loss costs to convert
to assigned risk rates. This factor accounts for differences in the components included in the
assigned risk rates versus the voluntary market loss costs. The key components of the assigned
risk loss cost multiplier are the assigned risk differential, assigned risk expenses, and
uncollectible premium provision (UPP). Voluntary market loss adjustment expenses must also
be removed in the calculation, since the servicing carrier allowance already contemplates these
expenses for the assigned risk market. Thus, the assigned risk loss cost multiplier formula is as
follows:
𝐴𝑠𝑠𝑖𝑔𝑛𝑒𝑑 𝑅𝑖𝑠𝑘 𝐿𝑜𝑠𝑠 𝐶𝑜𝑠𝑡 𝑀𝑢𝑙𝑡𝑖𝑝𝑙𝑖𝑒𝑟 𝐴𝑅 𝐷𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡𝑖𝑎𝑙 𝑉𝑜𝑙𝑢𝑛𝑡𝑎𝑟𝑦 𝐿𝐴𝐸 𝑃𝐿𝑅 𝑈𝑃𝑃
This filing proposes a –5.0% decrease in the assigned risk loss cost multiplier from 1.595 to
1.515. After applying the proposed change in the assigned risk loss cost multiplier to the
proposed change in voluntary loss costs, NCCI is proposing an overall average decrease of
–9.9% to the current assigned risk rate level. The detailed calculation can be found in Appendix
E – Section A.
Assigned Risk Differential
The assigned risk loss cost differential reflects the fact that the collective experience for
employers in the assigned risk market is typically worse than that of employers in the voluntary
market. Loss ratios are calculated for both the (i) assigned risk market and (ii) voluntary market
by individual year as follows:
𝑡𝑜𝑡𝑎𝑙 𝑜𝑛– 𝑙𝑒𝑣𝑒𝑙𝑒𝑑 𝑙𝑜𝑠𝑠𝑒𝑠

𝑡𝑜𝑡𝑎𝑙 𝑜𝑛– 𝑙𝑒𝑣𝑒𝑙𝑒𝑑, 𝑑𝑒𝑣𝑒𝑙𝑜𝑝𝑒𝑑 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑝𝑟𝑒𝑚𝑖𝑢𝑚 𝑎𝑡 𝑡ℎ𝑒 𝑣𝑜𝑙𝑢𝑛𝑡𝑎𝑟𝑦 𝑙𝑒𝑣𝑒𝑙
Loss ratio relativities are reviewed for ten individual years so that changes in the actual
differentials can be observed over a long period of time. When selecting the assigned risk
differential, the impact of additional premium that is already expected to be generated due to the
Assigned Risk Adjustment Program is also considered.
Based on this year’s analysis, NCCI is proposing to maintain the currently-approved assigned
risk differential of 1.300. The data underlying this selection is shown in Appendix E – Section B.
Page 110 of 127


Nevada

Voluntary

Appendix E – Determination of Assigned Risk Rates

Assigned Risk Expenses
The provision for assigned risk expenses is based on the following components:
 Servicing Carrier Allowance (SCA) – the market-based cost paid to the servicing carriers as
a percentage of final collected net premium that is intended to compensate for expenses
incurred in handling the assigned risk business. The average SCA is determined through a
competitive bid process and reflects items such as general expense, production expense
(excluding commission), loss adjustment expense and certain assessments.
 Premium Taxes are not included in the Servicing Carrier Allowance
 Assigned Risk Administration Expense – reflects NCCI Plan Administration Expenses,
NWCRA Pool Administration Expenses, and Servicing Carrier Other Expenses. It is selected
based on a review of expenses as a percentage of premium over the past ten years.
 Average Commission – based on a weighted average of the most recently available two
policy years
Note that the expense components that are based on net premium are converted to a standard
premium basis excluding the impact of expense constants. Then the total assigned risk
expenses are used to determine the Permissible Loss Ratio (PLR):
𝑃𝐿𝑅 100% 𝑝𝑟𝑜𝑣𝑖𝑠𝑖𝑜𝑛 𝑓𝑜𝑟 𝐴𝑠𝑠𝑖𝑔𝑛𝑒𝑑 𝑅𝑖𝑠𝑘 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
In this filing, NCCI is proposing a 4.2% decrease to the current assigned risk expense provision.
The calculation of assigned risk expenses can be found in Appendix E – Sections C-E.
Uncollectible Premium Provision
The purpose of the uncollectible premium provision is to make available sufficient funds in the
rate structure to offset the policy premium ultimately determined to be uncollectible. Based on a
review of historical ratios of ultimate gross premium to ultimate collected premium in the
assigned risk market, NCCI is proposing to maintain the currently approved uncollectible
premium provision of 1.015. The data underlying this selection is shown in Appendix E –
Section F.
Page 111 of 127


NEVADA

APPENDIX E
Determination of Assigned Risk Rate Level Change
Section A - Derivation of the Assigned Risk Loss Cost Multiplier
This filing proposes a -9.9% overall average change to the current assigned risk rate level. For all
classifications, an assigned risk multiplier is applied to the voluntary loss costs proposed effective March 1,
2021 in order to convert to assigned risk rates.
(1) Current Assigned Risk Loss Cost Multiplier 1.595
(2) Proposed Assigned Risk Loss Cost Differential (Section B) 1.300
(3) Proposed Voluntary Loss-based Expense Provision (Exhibit II) 18.0%
(4) Indicated Assigned Risk Permissible Loss Ratio (Section C) 73.8%
(5) Proposed Uncollectible Premium Provision (Section G) 1.015
(6) Indicated Assigned Risk Loss Cost Multiplier = ({(2) / [1 + (3)]} / (4)) x (5) 1.515
(7) Indicated Change in the Assigned Risk Loss Cost Multiplier = [(6) / (1)] - 1.0 -5.0%
(8) Proposed Voluntary Loss Cost Level Change (Exhibit I) -5.2%
(9) Indicated Assigned Risk Rate Level Change = {[1.0 + (7)] x [1.0 + (8)]} - 1.0 -9.9%
Page 112 of 127


NEVADA

APPENDIX E

Determination of Assigned Risk Rates
Section B - Derivation of Assigned Risk Differential

Experience Valued as of 12/31/2019
(1) (2) (3) (4)

Policy Standard Pure Premium Unlimited Undeveloped Paid Losses
Year Assigned Risk Voluntary Assigned Risk Voluntary
2004 15,273,122 108,987,202 30,864,100 146,389,076

2005 15,281,703 125,264,024 22,097,940 152,492,492
2006 14,559,306 139,667,662 18,699,919 188,647,200
2007 10,878,919 169,423,644 16,231,354 205,200,592
2008 8,101,762 159,722,984 9,661,013 183,527,293
2009 5,493,608 138,514,974 9,630,120 151,498,184
2010 4,779,218 129,801,063 8,900,335 124,983,245
2011 5,859,081 131,079,303 11,488,888 126,390,342
2012 8,816,654 126,018,660 13,119,163 109,639,759
2013 11,292,707 136,038,306 15,051,952 121,045,958
2014 11,887,358 149,697,404 14,020,200 123,095,966
2015 10,662,725 159,192,695 11,192,014 127,866,645
2016 11,969,765 172,285,518 14,011,618 128,135,653
2017 12,972,946 186,161,607 10,044,517 120,628,724
2018 12,819,892 208,031,346 5,390,170 87,870,839
(5) = (3) / (1) (6) = (4) / (2) (7) = (5) / (6) (8) = (7) / Impact of
AR Programs^
Assigned Risk
Policy Pure Premium Ratio to Voluntary Indicated Assigned
Year Assigned Risk Voluntary Relativity Risk Differential
2004 2.021 1.343 1.505 1.420

2005 1.446 1.217 1.188 1.121
2006 1.284 1.351 0.950 0.896
2007 1.492 1.211 1.232 1.162
2008 1.192 1.149 1.037 0.978
2009 1.753 1.094 1.602 1.511
2010 1.862 0.963 1.934 1.825
2011 1.961 0.964 2.034 1.919
2012 1.488 0.870 1.710 1.613
2013 1.333 0.890 1.498 1.413
2014 1.179 0.822 1.434 1.353
2015 1.050 0.803 1.308 1.234
2016 1.171 0.744 1.574 1.485
2017 0.774 0.648 1.194 1.126
2018 0.420 0.422 0.995 0.939
Current Assigned Risk Differential 1.300
Proposed Assigned Risk Differential 1.300
Proposed Change in Assigned Risk Differential 1.000 0.0%
^
Assigned Risk Programs in Addition to the Differential
(a) Removal of Premium Discounts 1.000
(b) ARAP 1.060
(c) Merit Rating 1.000
(d) Assigned Risk Surcharge 1.000
(e) Other Standard Premium Programs 1.000
Total impact of programs 1.060

= (a) x (b) x (c) x (d) x (e)
Page 113 of 127


NEVADA

APPENDIX E
Section C - Expense Components of Assigned Risk Rate
The assigned risk expense provision including loss-based expenses is derived directly from the servicing carrier allowance, since this
is the market-based cost to the assigned risk plan to have the plan serviced. The average commission rate, the profit and contingency
provision, a provision for administrative expenses, and all taxes and assessments not included in the servicing carrier allowance must
be added to the allowance to derive an average expense provision as a percentage of standard premium excluding the expense constants.
Expense Provisions
Underlying Proposed Rates
(1) Expense Constant $160
(2) Weighted-Average of Servicing Carrier Allowance Bids 20.3%
(3) Assigned Risk Administration Expense

(Section E) 3.9%
(4) Expense Constant Premium as a Percentage of Standard Premium

Excluding the Expense Constant (Section D) 2.9%
(5) Servicing Carrier Allowance, Taxes and Administrative Expense

Converted to a Standard Premium Excluding Expense Constant Basis
= [(2) + (3)] x [1 + (4)] - (4) 22.0%
(6) Average Commission (Section D) 4.2%
(7) Profit and Contingency Provision 0.0%
(8) Total Expense Provision in Rate

= (5) + (6) + (7) 26.2%
(9) Permissible Loss Ratio in Rate

= 1 - (8) 73.8%
(10) Current Permissible Loss Ratio in Rate 70.7%
(11) Impact on Rate due to Change in Expenses

= (0.707 / 0.738) - 1 -4.2%
Page 114 of 127


NEVADA

APPENDIX E
Determination of Assigned Risk Rate Level Change
Section D - Derivation of Expense Constant and Commission as a Percentage of Premium
Premium Distribution by Layer for Assigned Risk Policies for Policy Years 2018 & 2019
(1) (2) (3) ¹

Standard
Standard Premium
Portion of Total Premium Excl Exp Cnst Commission
Standard Premium Excl Exp Cnst Distribution Scale 2
First 1,000 7,193,839 16.1% 8.0%
Next 4,000 11,548,914 25.9% 5.0%
Next 95,000 21,127,116 47.3% 3.0%
Over 100,000 4,784,798 10.7% 2.0%
Total 44,654,666 100.0% 4.2%
(4) Expense Constant Premium as % of Standard Premium Excluding Expense Constant ³ = 2.9%
1 Totals represent weighted averages based on column (2).

2 Commissions paid in Nevada are based on standard premium excluding expense constant premium.
Source of the commission scale is NCCI's Basic Manual, Rule 4-H-6.
3 Based on assigned risk policy and premium totals for policy years 2018 & 2019 using the dominant
state method for the classification of multistate policies.
Page 115 of 127


NEVADA
APPENDIX E
Section E - Derivation of NCCI Plan Administration Expenses, NWCRA Pool Administration Expenses,
and Servicing Carrier Other Expenses
(1) (2) (3)
Net Expenses as
Calendar Written % of NWP
1
Year Premium Expenses = (2)/(1)
2010 11,738,152 1,512,317 12.9%
2011 15,525,662 1,274,600 8.2%
2012 19,956,214 1,304,727 6.5%
2013 29,373,898 1,159,165 3.9%
2014 30,459,987 1,311,477 4.3%
2015 26,219,096 908,724 3.5%
2016 27,661,797 832,988 3.0%
2017 27,495,253 901,891 3.3%
2018 28,702,356 895,273 3.1%
2019 30,157,820 903,707 3.0%
#REF!
Selected 3.9%
1
Gross of uncollectible premium.
Page 116 of 127


NEVADA

APPENDIX E

Section F - Calculation of Ultimate Uncollectible Premium Provision (UPP)
Section 1 - Gross Premium as of 12/31/2019 - Traumatic Only (000s)

Ultimate
Policy Year 1st 2nd 3rd 4th 5th 6th 7th 8th Gross
2008 25,130 25,128 25,132 25,125 25,121 25,121
2009 15,714 15,674 15,673 15,673 15,673 15,672 15,672
2010 13,495 13,482 13,477 13,480 13,481 13,479 13,495 13,495
2011 15,491 15,691 15,678 15,683 15,679 15,663 15,664 15,663 15,663
2012 21,705 22,448 22,455 22,396 22,390 22,393 22,393 22,393
2013 27,679 28,349 28,322 28,317 28,321 28,323 28,323
2014 30,650 30,633 30,587 30,443 30,436 30,436
2015 25,913 26,642 26,510 26,505 26,505
2016 28,472 28,699 28,626 28,598
2017 27,435 27,907 27,823
2018 27,291 27,646
Policy Year 1/2 2/3 3/4 4/5 5/6 6/7 7/8 8 / Ult
2008 1.000 1.000
2009 1.000 1.000 1.000
2010 1.000 1.000 1.000 1.001
2011 1.000 1.000 0.999 1.000 1.000
2012 1.000 0.997 1.000 1.000 1.000
2013 1.024 0.999 1.000 1.000 1.000
2014 0.999 0.998 0.995 1.000
2015 1.028 0.995 1.000
2016 1.008 0.997
2017 1.017
5-Yr Avg 1.015 0.998 0.998 1.000 1.000 1.000 1.000
5-Yr Avg x H/L 1.016 0.998 0.999 1.000 1.000 1.000 1.000
Selected 1.016 0.998 0.999 1.000 1.000 1.000 1.000 1.000
Ultimate 1.013 0.997 0.999 1.000 1.000 1.000 1.000 1.000
Section 2 - Collected Premium as of 12/31/2019 - Traumatic Only (000s)

Ultimate Gross /
Policy Year 1st 2nd 3rd 4th 5th 6th 7th 8th Collected Collected
2008 24,335 24,341 24,351 24,348 24,348 24,348 1.032
2009 15,576 15,534 15,556 15,557 15,557 15,556 15,556 1.007
2010 13,246 13,259 13,332 13,334 13,335 13,334 13,347 13,347 1.011
2011 15,178 15,411 15,484 15,510 15,523 15,519 15,532 15,542 15,542 1.008
2012 21,481 22,046 22,089 21,789 21,787 21,814 21,889 21,911 1.022
2013 27,440 27,743 27,712 27,731 27,837 27,849 27,877 1.016
2014 30,029 29,791 29,797 29,774 29,766 29,796 1.021
2015 25,626 26,282 26,224 26,233 26,260 1.009
2016 28,082 28,192 27,778 27,806 1.028
2017 27,182 27,322 27,322 1.018
2018 26,904 27,092 1.020
Policy Year 1/2 2/3 3/4 4/5 5/6 6/7 7/8 8 / Ult
2008 1.000 1.000
2009 1.000 1.000 1.000
2010 1.000 1.000 1.000 1.001
2011 1.002 1.001 1.000 1.001 1.001 Selected UPP 1.015
2012 1.002 0.986 1.000 1.001 1.003
2013 1.011 0.999 1.001 1.004 1.000 Current UPP 1.015
2014 0.992 1.000 0.999 1.000
2015 1.026 0.998 1.000 Impact of Change in UPP 1.000
2016 1.004 0.985
2017 1.005
5-Yr Avg 1.008 0.997 0.998 1.001 1.000 1.001 1.001
5-Yr Avg x H/L 1.007 0.999 1.000 1.000 1.000 1.000 1.001
Selected 1.007 0.999 1.000 1.000 1.000 1.000 1.001 1.000
Ultimate 1.007 1.000 1.001 1.001 1.001 1.001 1.001 1.000
Source: Residual Market data reported to NCCI by Pool servicing carriers.
Page 117 of 127


Nevada

Voluntary

Appendix F – Derivation of Experience Rating Values

1. Expected Loss Rate (ELR) factors
An expected loss rate for a classification is used to estimate the expected losses per $100 of
payroll during the experience rating period for risks within that classification. These expected
losses are then compared with the actual losses of a risk during the experience rating period to
determine the experience modification (mod).
The actual losses reflect the loss data during the experience rating period. Expected losses and
actual losses must be at the same level to enable an appropriate comparison for purposes of
the experience mod calculation. As such, the pure premiums underlying the proposed loss costs
are adjusted to reflect the average loss levels of the proposed experience rating period. This is
accomplished through the application of ELR factors to the proposed underlying pure premiums.
These ELR factors, calculated by hazard group, remove the effects of items such as: loss
development, expected losses above the State Accident Limit, a portion of medical-only losses,
benefit changes, trend, loss-based expenses, experience, and offsets for assigned risk
programs.
An adjustment is made to the ELR factors so that the resulting ELRs produce an expected
experience rating off-balance that equals the targeted experience rating off-balance used in the
calculation of the overall loss cost level change for the state (Appendix A–I).
The final ELR for each classification is calculated as follows:

ELR = {(Hazard Group indemnity ELR factor) x (indemnity pure premium) +
(Hazard Group medical ELR factor) x (medical pure premium)} x Manual/Standard Ratio
2. Discount Ratio (D-Ratio) factors
In experience rating, losses are divided into primary and excess portions. For each claim, losses
below the split point are primary losses, while losses above the split point are excess losses.
The D-ratio represents the estimated ratio of expected primary losses to expected total losses
for a classification. The D-ratio is used to determine the expected primary losses to be used in
the experience mod calculation.
D-ratio factors are calculated separately for indemnity and medical losses by hazard group and
are based on the latest three years of Unit Statistical data. A comparison of the resulting D-ratio
Page 118 of 127


Nevada

Voluntary

Appendix F – Derivation of Experience Rating Values

factors across hazard groups is done to ensure that the factors monotonically decrease from
hazard group A to hazard group G. If they do not, an adjustment is made by averaging the D-
ratios over adjacent hazard groups.
The final D-ratio for each classification is calculated as follows:

D-ratio = {(HG indemnity D-ratio factor) x (indemnity pure premium) +
(HG medical D-ratio factor) x (medical pure premium)} / total pure premium
3. Additional experience rating values
Table of Weighting Values

The Weighting Value (W) determines how much actual excess and expected excess losses will
enter the experience modification formula. The weighting value increases as expected losses
increase with larger insureds receiving a larger weighting value. The weighting value for various
levels of expected losses is provided in the Table of Weighting Values. The table is updated
based on the state reference point, which is updated with Unit Statistical data each experience
filing.
The state reference point is calculated as the state average cost per case for the experience
rating period multiplied by 250. The state reference point serves to determine how much
credibility to give to the losses of an individual risk and as an index of claim cost differences by
state. The state per claim accident limitation shown on the Table of Weighting Values is 10% of
the state reference point.
Table of Ballast Values

The Ballast Value (B) is a stabilizing value designed to limit the effect of any actual loss
experience on the experience rating modification. It is added to both the numerator and
denominator of the mod calculation and increases as expected losses increase. The ballast
value for various levels of expected loss ranges is provided in the Table of Ballast Values. The
table is updated based on the state reference point, which is updated with Unit Statistical data.
The G value used in the ballast formula is the state reference point / 250,000, rounded to the
nearest 0.05.
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Part 4 Additional Information
- Definitions
- NCCI Affiliate List
- Key Contacts
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Definitions
Accident Year (AY): A loss accounting definition in which experience is summarized by the
calendar year in which an accident occurred.
Calendar Year (CY):

1. The 12-month period beginning January 1 and ending December 31.
2. Method of accounting for all financial transactions occurring during a specific year.
Case Reserves: Reserves that an insurance company establishes for specific (known) claims.
DSR Level Premium: The standard earned premium that would result if business were written
at NCCI state-approved loss costs or rates instead of at the company rates. It is the common
benchmark level at which carriers report premium on the Financial Calls.
Frequency: The number of lost-time claims per million dollars of on-leveled, wage-adjusted
premium.
Incurred Claim Count: The total of all claims reported, whether open or closed, as of a given
valuation date. An indemnity claim is associated with a payment or case reserve for an
indemnity loss (i.e., lost work time-related benefits) and excludes claims closed without an
indemnity payment.
Lost-time Claims: Claims where an injured employee has received wage replacement benefits
due to a compensable workplace injury.
Limited Losses: Losses that result after the application of NCCI's large loss procedure—in
which individual large claims are limited to jurisdiction and year-specific large loss thresholds.
On-Level Factor: Applied to historical premiums and losses to adjust the historical experience
to reflect approved loss cost/rate level changes as well as statutory benefit level changes
implemented since that time.
Paid+Case Losses: The sum of paid losses and case reserves. Also known as “case incurred
losses.”
Paid Losses: Losses that an insurance company has paid as a result of claim activity.
Policy Year:
 The one-year period beginning with the effective date or anniversary of a policy.
 A premium and loss accounting definition in which experience is summarized for all policies
with effective dates in a given calendar year period.
Severity: The average cost per case (claim) calculated as ultimate losses divided by ultimate
lost-time claim counts.
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Definitions
Ultimate Development Factor: For an aggregation of data, an estimate of the development

that will occur between the data's current valuation date and the time when all claims are
closed.
Unlimited Losses: Losses that have not been limited to jurisdiction and year-specific large loss
thresholds as part of NCCI's large loss procedure.
Valuation Date: The date that premiums and losses are evaluated for reporting purposes.
Premiums and losses may change over time from initial estimates to final values. Therefore,
interim snapshots have associated valuation dates.
Wage Level Adjustment Factor: The ratio of the average workers’ wages during the most
recent time period to the average workers’ wages during a historical time period.
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NCCI Affiliate List
7710 INSURANCE COMPANY BERKLEY INSURANCE COMPANY

A M C O INSURANCE COMPANY BERKLEY NATIONAL INSURANCE COMPANY
ACCIDENT FUND GENERAL INS CO BERKLEY REGIONAL INS CO
ACCIDENT FUND INS CO OF AMERICA BERKSHIRE HATHAWAY DIRECT INSURANCE COMPANY
ACCIDENT FUND NATIONAL INS CO BERKSHIRE HATHAWAY HOMESTATE INS CO
ACCIDENT INSURANCE COMPANY INC BITCO GENERAL INSURANCE CORPORATION
ACCREDITED SURETY AND CASUALTY CO INC BITCO NATIONAL INSURANCE COMPANY
ACE AMERICAN INSURANCE COMPANY BLACKBOARD INSURANCE COMPANY
ACE FIRE UNDERWRITERS INSURANCE COMPANY BROTHERHOOD MUTUAL INS CO
ACE PROPERTY & CASUALTY INSURANCE COMPANY CALIFORNIA INSURANCE COMPANY
ACIG INS CO CARE WEST INSURANCE COMPANY
ACUITY A MUTUAL INS COMPANY CAROLINA CASUALTY INS CO
AIG ASSURANCE COMPANY CENTRAL MUTUAL INS CO
AIG PROPERTY CASUALTY COMPANY CHARTER OAK FIRE INS CO
AIU INSURANCE CO (NATIONAL UNION FIRE OF PITTS PA) CHEROKEE INS CO
AK NATIONAL INS CO CHIRON INSURANCE COMPANY
ALL AMERICA INS CO CHUBB INDEMNITY INS CO
ALLIED INSURANCE COMPANY OF AMERICA CHUBB NATIONAL INS CO
ALLIED PROPERTY AND CASUALTY INS CO CHURCH MUTUAL INS CO, S.I.
ALLMERICA FINANCIAL ALLIANCE INS CO CIMARRON INSURANCE COMPANY INC
ALLMERICA FINANCIAL BENEFIT INS CO CINCINNATI CASUALTY COMPANY
AMERICAN ALTERNATIVE INSURANCE CORPORATION CINCINNATI INDEMNITY COMPANY
AMERICAN AUTOMOBILE INSURANCE CO CINCINNATI INS CO
AMERICAN BUSINESS AND MERCANTILE INS MUTUAL INC CITIZENS INS CO OF AMERICA
AMERICAN CASUALTY COMPANY OF READING P A CLEAR SPRING PROPERTY AND CASUALTY COMPANY
AMERICAN COMPENSATION INS CO CO CASUALTY INS CO
AMERICAN ECONOMY INS CO COLONIAL AMERICAN CASUALTY & SURETY CO
AMERICAN FAMILY HOME INS CO COMMERCE AND INDUSTRY INS CO
AMERICAN FAMILY INS CO COMPWEST INS CO
AMERICAN FAMILY MUTUAL INSURANCE COMPANY, S.I. CONTINENTAL CASUALTY CO
AMERICAN FIRE AND CASUALTY CO CONTINENTAL INDEMNITY CO
AMERICAN GUARANTEE AND LIABILITY INS CO CONTINENTAL INS CO
AMERICAN HOME ASSUR CO-NATIONAL UNION FIRE OF PIT CONTINENTAL WESTERN INSURANCE COMPANY
AMERICAN INS CO COPPERPOINT AMERICAN INSURANCE COMPANY
AMERICAN INTERSTATE INS CO COPPERPOINT CASUALTY INSURANCE COMPANY
AMERICAN LIBERTY INSURANCE CO COPPERPOINT GENERAL INSURANCE COMPANY
AMERICAN MODERN HOME INS CO COPPERPOINT INDEMNITY INSURANCE COMPANY
AMERICAN SELECT INS CO COPPERPOINT INSURANCE COMPANY
AMERICAN STATES INS CO A SAFECO COMPANY COPPERPOINT NATIONAL INSURANCE COMPANY
AMERICAN STATES INS CO OF TX COPPERPOINT PREMIER INSURANCE COMPANY
AMERICAN ZURICH INS CO COPPERPOINT WESTERN INSURANCE COMPANY
AMERISURE INS CO CRESTBROOK INS CO
AMERISURE MUTUAL INS CO CRUM AND FORSTER INDEMNITY CO
AMERISURE PARTNERS INS CO DAKOTA TRUCK UNDERWRITERS
AMGUARD INS CO DEPOSITORS INS CO
AMTRUST INSURANCE CO DISCOVER PROPERTY & CASUALTY INS CO
ARCH INDEMNITY INSURANCE COMPANY EASTGUARD INS CO
ARCH INSURANCE COMPANY ECOLE INSURANCE COMPANY
ARCH PROPERTY CASUALTY INS CO ELECTRIC INS CO
ARGONAUT GREAT CENTRAL INS CO EMC PROPERTY & CASUALTY COMPANY
ARGONAUT INS CO EMCASCO INS CO
ARGONAUT MIDWEST INS CO EMPLOYERS ASSURANCE COMPANY
ASHMERE INSURANCE COMPANY EMPLOYERS COMPENSATION INS CO
ASSOCIATED INDEMNITY CORP EMPLOYERS INS CO OF WAUSAU
ATLANTIC SPECIALTY INS CO (INTACT ) EMPLOYERS INSURANCE COMPANY OF NEVADA
BADGER MUTUAL INS CO EMPLOYERS MUTUAL CASUALTY CO
BANKERS STANDARD INS CO EMPLOYERS PREFERRED INS CO
BEARING MIDWEST CASUALTY COMPANY ENDURANCE AMERICAN INS CO
BENCHMARK INSURANCE COMPANY ENDURANCE ASSURANCE CORPORATION
BERKLEY CASUALTY COMPANY EVEREST DENALI INSURANCE COMPANY
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NCCI Affiliate List
EVEREST NATIONAL INS CO INDEMNITY INS CO OF N AMERICA (INA INS) (CT GEN)
EVEREST PREMIER INSURANCE COMPANY INS CO OF NORTH AMERICA
EVEREST REINSURANCE CO DIRECT INS CO OF THE STATE PA
EXECUTIVE RISK INDEMNITY INC INS CO OF THE WEST
EXPLORER INS CO INTREPID INSURANCE COMPANY
FALLS LAKE NATIONAL INSURANCE CO KEY RISK INS CO
FARMERS INS CO OF OR LACKAWANNA AMERICAN INS CO
FARMERS INSURANCE EXCHANGE LACKAWANNA CASUALTY CO
FEDERAL INSURANCE COMPANY LACKAWANNA NATIONAL INS CO
FEDERATED MUTUAL INS CO LIBERTY INS CORP
FEDERATED RESERVE INSURANCE CO LIBERTY INSURANCE UNDERWRITERS INC
FEDERATED RURAL ELECTRIC INS EXCHANGE LIBERTY MUTUAL FIRE INS CO
FEDERATED SERVICE INS CO LIBERTY MUTUAL INS CO
FIDELITY & DEPOSIT COMPANY OF MARYLAND LION INSURANCE COMPANY
FIDELITY & GUARANTY INS UNDERWRITERS LM INS CORP
FIDELITY & GUARANTY INSURANCE CO MA BAY INS CO
FIRE INS EXCHANGE MAG MUTUAL INS CO
FIREMANS FUND INSURANCE CO MANUFACTURERS ALLIANCE INS CO
FIRST DAKOTA INDEMNITY CO MARKEL INSURANCE CO
FIRST LIBERTY INS CORP MEMIC INDEMNITY CO
FIRST NATIONAL INS CO OF AMERICA MERIDIAN SECURITY INSURANCE COMPANY
FIRST NONPROFIT INS CO MID CENTURY INS CO
FIRSTCOMP INSURANCE CO MIDDLESEX INS CO
FLORISTS MUTUAL INSURANCE CO MIDVALE INDEMNITY COMPANY
FRANK WINSTON CRUM INSURANCE CO MIDWEST BUILDERS CASUALTY MUTUAL COMPANY
GENERAL CASUALTY COMPANY OF WISCONSIN MIDWEST EMPLOYERS CASUALTY CO
GENERAL INS CO OF AMERICA MIDWEST FAMILY ADVANTAGE INSURANCE CO
GENERAL STAR NATIONAL INS CO MIDWEST FAMILY MUTUAL INS CO
GENESIS INS CO MIDWEST INS CO
GRANITE STATE INSURANCE COMPANY MILBANK INSURANCE COMPANY
GRAPHIC ARTS MUTUAL INS CO MILFORD CASUALTY INSURANCE CO
GRAY INSURANCE COMPANY MITSUI SUMITOMO INS CO OF AMERICA
GREAT AMERICAN ALLIANCE INS CO MITSUI SUMITOMO INS USA INC
GREAT AMERICAN ASSURANCE COMPANY MOTORISTS COMMERCIAL MUTUAL INSURANCE COMPANY
GREAT AMERICAN INS CO OF NY MOUNTAINPOINT INSURANCE COMPANY
GREAT AMERICAN INSURANCE COMPANY NATIONAL AMERICAN INS CO
GREAT AMERICAN SECURITY INS CO NATIONAL CASUALTY CO
GREAT AMERICAN SPIRIT INS CO NATIONAL FIRE INS CO OF HARTFORD
GREAT DIVIDE INSURANCE COMPANY NATIONAL INTERSTATE INS CO
GREAT MIDWEST INS CO NATIONAL LIABILITY & FIRE INSURANCE CO
GREAT NORTHERN INS CO NATIONAL SPECIALTY INS CO
GREAT WEST CASUALTY COMPANY NATIONAL SURETY CORP
GREENWICH INS CO NATIONAL UNION FIRE INS CO OF PITTSBURGH PA
GUIDEONE AMERICA INS CO NATIONWIDE AGRIBUSINESS INS CO
GUIDEONE ELITE INS CO NATIONWIDE ASSURANCE CO
GUIDEONE MUTUAL INS CO NATIONWIDE GENERAL INSURANCE CO
GUIDEONE SPECIALTY MUTUAL INS CO NATIONWIDE INS CO OF AMERICA
HANOVER AMERICAN INS CO NATIONWIDE MUTUAL FIRE INS CO
HANOVER INS CO NATIONWIDE MUTUAL INS CO
HARTFORD ACCIDENT AND INDEMNITY CO NATIONWIDE PROPERTY AND CASUALTY INS CO
HARTFORD CASUALTY INS CO NETHERLANDS INSURANCE COMPANY
HARTFORD FIRE INSURANCE CO NEVADA MUTUAL INSURANCE CO
HARTFORD INS CO OF IL NEW HAMPSHIRE INSURANCE COMPANY
HARTFORD INS CO OF MIDWEST NEW YORK MARINE AND GENERAL INSURANCE CO
HARTFORD INS CO OF THE SOUTHEAST NGM INSURANCE COMPANY
HARTFORD UNDERWRITERS INS CO NORGUARD INS CO
HDI GLOBAL INSURANCE COMPANY NORTH AMERICAN ELITE INSURANCE CO
ILLINOIS NATIONAL INSURANCE COMPANY NORTH AMERICAN SPECIALTY INS CO
IMPERIUM INSURANCE COMPANY NORTH POINTE INS CO
INCLINE CASUALTY COMPANY NORTH RIVER INS CO
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NCCI Affiliate List
NOVA CASUALTY COMPANY ST PAUL PROTECTIVE INS CO

NUTMEG INS CO STANDARD FIRE INSURANCE COMPANY
OAK RIVER INSURANCE COMPANY STAR INS CO
OBI AMERICA INSURANCE COMPANY STARNET INSURANCE COMPANY
OBI NATIONAL INSURANCE COMPANY STARR INDEMNITY AND LIABILITY CO
OH CASUALTY INS CO STARR SPECIALTY INSURANCE COMPANY
OHIO SECURITY INS CO STARSTONE NATIONAL INSURANCE COMPANY
OLD GUARD INSURANCE COMPANY STATE AUTO PROPERTY AND CASUALTY INS CO
OLD REPUBLIC GENERAL INSURANCE CORPORATION STATE AUTOMOBILE MUTUAL INS CO
OLD REPUBLIC INS CO STATE FARM FIRE AND CASUALTY CO
PA MANUFACTURERS ASSN INS CO STATE NATIONAL INSURANCE COMPANY
PA MANUFACTURERS INDEMNITY CO STONINGTON INS CO
PACIFIC COMPENSATION INSURANCE CO SUNZ INSURANCE COMPANY
PACIFIC EMPLOYERS INS CO T H E INSURANCE COMPANY
PACIFIC INDEMNITY CO TECHNOLOGY INSURANCE CO
PATRONS MUTUAL INS CO OF CT THE TRAVELERS CASUALTY COMPANY
PEERLESS INDEMNITY INS CO TNUS INSURANCE CO
PEERLESS INSURANCE COMPANY TOKIO MARINE AMERICA INSURANCE CO
PENNSYLVANIA INSURANCE COMPANY TRANS PACIFIC INS CO
PETROLEUM CASUALTY CO TRANSGUARD INS CO OF AMERICA INC
PHARMACISTS MUTUAL INS CO TRANSPORTATION INS CO
PHOENIX INS CO TRANSVERSE INSURANCE COMPANY
PIONEER SPECIALTY INSURANCE COMPANY TRAVCO INS CO
PRAETORIAN INSURANCE COMPANY TRAVELERS CASUALTY AND SURETY CO
PREFERRED EMPLOYERS INS CO TRAVELERS CONSTITUTION STATE INS CO
PREFERRED PROFESSIONAL INSURANCE COMPANY TRAVELERS INDEMNITY CO
PROCENTURY INS CO TRAVELERS INDEMNITY CO OF AMERICA
PROPERTY AND CASUALTY INS CO OF HARTFORD TRAVELERS INDEMNITY CO OF CT
PROTECTIVE INS CO TRAVELERS INSURANCE CO
QBE INSURANCE CORPORATION TRAVELERS PROPERTY CASUALTY CO OF AMERICA
REDWOOD FIRE & CASUALTY INS CO TRI STATE INSURANCE COMPANY OF MINNESOTA
REGENT INSURANCE COMPANY TRIUMPHE CASUALTY COMPANY
REPUBLIC INDEMNITY CO OF CA TRUCK INSURANCE EXCHANGE
REPUBLIC INDEMNITY COMPANY OF AMERICA TRUMBULL INS CO
RIVERPORT INSURANCE COMPANY TWIN CITY FIRE INS CO
RLI INSURANCE COMPANY UNIGARD INS CO
ROCKWOOD CASUALTY INS CO UNION INS CO OF PROVIDENCE
SAFECO INS CO OF AMERICA UNION INSURANCE COMPANY
SAFETY FIRST INS CO UNITED STATES FIDELITY AND GUARANTY CO
SAFETY NATIONAL CASUALTY CORP UNITED WI INS CO
SAGAMORE INSURANCE CO US FIRE INS CO
SAMSUNG FIRE AND MARINE INS CO LTD USB UTAH BUSINESS INSURANCE COMPANY INC
SECURA INSURANCE A MUTUAL CO UTICA MUTUAL INS CO
SECURA SUPREME INS CO VALLEY FORGE INS CO
SECURITY NATIONAL INS CO (AMTRUST GROUP) VANLINER INS CO
SELECTIVE INSURANCE COMPANY OF AMERICA VANTAPRO SPECIALTY INS CO
SENTINEL INS CO VICTORIA FIRE & CASUALTY COMPANY
SENTRY CASUALTY CO VIGILANT INS CO
SENTRY INSURANCE A MUTUAL CO WASHINGTON INTERNATIONAL INSURANCE COMPANY
SENTRY SELECT INSURANCE COMPANY WATFORD INSURANCE COMPANY
SEQUOIA INSURANCE CO WCF NATIONAL INSURANCE COMPANY
SERVICE AMERICAN INDEMNITY COMPANY WELLFLEET INSURANCE COMPANY
SFM MUTUAL INS CO WELLFLEET NEW YORK INSURANCE COMPANY
SIRIUS AMERICA INSURANCE COMPANY WEST AMERICAN INS CO
SOMPO AMERICA FIRE & MARINE INSURANCE COMPANY WEST BEND MUTUAL INS CO
SOMPO AMERICA INSURANCE COMPANY WESTERN NATIONAL ASSURANCE CO
SOUTHERN INS CO WESTERN NATIONAL MUTUAL INS CO
ST PAUL FIRE AND MARINE INS CO WESTFIELD CHAMPION INSURANCE COMPANY
ST PAUL GUARDIAN INS CO WESTFIELD INS CO
ST PAUL MERCURY INS CO WESTFIELD NATIONAL INS CO
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NCCI Affiliate List
WESTFIELD PREMIER INSURANCE COMPANY

WESTFIELD SUPERIOR INSURANCE COMPANY
WESTFIELD TOUCHSTONE INSURANCE COMPANY
WESTPORT INSURANCE CORPORATION
WILLIAMSBURG NATIONAL INS CO
WORK FIRST CASUALTY CO
XL INS CO OF NY INC
XL INSURANCE AMERICA INC
XL SPECIALTY INS CO
ZENITH INS CO
ZURICH AMERICAN INS CO
ZURICH AMERICAN INS CO OF IL
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Key Contacts

Senior State Relations Executive
Regulatory Division
National Council on Compensation Insurance, Inc. (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
Phone (801) 401-6464 Fax (561) 893-5801
Katherine Williamson, FCAS, MAAA

Director – Data Science
Actuarial and Economic Services Division
National Council on Compensation Insurance, Inc. (NCCI)
901 Peninsula Corporate Circle
Boca Raton, Florida 33487-1362
Phone (561) 893-3145 Fax (561) 893-5733
All NCCI employees can be contacted via e-mail using the following format:
First Name_Last Name@NCCI.com
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National Council on Compensation Insurance State Relations—Regulatory Services

NOVEMBER 6, 2020 NV-2020-03

901 Peninsula Corporate Circle, Boca Raton, FL 33487-1362 2857 NV-2020-03

PERSON TO If you have any questions, please contact: Technical Contact:

901 Peninsula Corporate Circle, Boca Raton, FL 33487-1362 2857 NV-2020-03

Voluntary Loss Costs,

Proposed Effective March 1, 2021

NCCI MAKES NO REPRESENTATIONS OR WARRANTIES RELATING TO THESE MATERIALS,

I, Katherine Williamson, am a Director of Data Science for the National Council on

Katherine Williamson, FCAS, MAAA

Data Sources and Dates

Risks and Uncertainty

 Projection of future loss development

Part 1 Filing Overview

Part 2 Proposed Values

- Proposed Voluntary Loss Costs and Rating Values

Part 3 Supporting Exhibits

- Exhibit I: Determination of the Indicated Loss Cost Level Change

Part 4 Additional Information

Part 1 Filing Overview

- Selections Underlying the Proposed Changes

- Additional Proposed Changes

Key Components Percentage Change

Impact of change in Assigned Risk Loss Cost Multiplier –5.0%

Proposed Changes in Voluntary Loss Cost Level by Industry Group:

Average Maximum Maximum

Additional Notable Changes Proposed in the Filing:

Assigned Risk Rates

Approved Proposed Effective

Premium Development 3-year average 3-year average

Basis of Loss Experience Paid losses Paid losses

Paid Loss Development 3-year average* 3-year average*

Tail Factors Selected Selected

Indemnity Annual Loss Ratio Trend Factor 0.960 0.970

Medical Annual Loss Ratio Trend Factor 0.970 0.965

Loss Adjustment Expense Provision 17.0% 18.0%

Classification Swing Limits

Approved Proposed Effective

Assigned Risk Loss Cost Differential 1.300 1.300

Profit and Contingencies Provision 0% 0%

Uncollectible Premium Provision 1.015 1.015

Maximum Minimum Premium $1,100 $1,100

Selections Underlying the Proposed Changes

Experience and Development

Selections Underlying the Proposed Changes

 There could be an increase in the number of compensable workers compensation claims

Selections Underlying the Proposed Changes

Nevada Claim Frequency

Selections Underlying the Proposed Changes

Nevada Indemnity Average Cost Per Case

40,000 37,794 37,423 36,966

Nevada Medical Average Cost Per Case

Selections Underlying the Proposed Changes

Nevada Indemnity Loss Ratio History

Nevada Medical Loss Ratio History

0.80 0.711 0.708

Selections Underlying the Proposed Changes

Loss Adjustment Expenses

Additional Proposed Changes

This change is premium neutral on an overall basis.

Part 2 Proposed Values

- Proposed Voluntary Loss Costs and Rating Values

- Proposed Assigned Risk Rates and Rating Values