The National Council on Compensation Insurance (NCCI) is the workers' compensation insurance rating organization in South Carolina. As such, they file prospective loss costs with the South Carolina Department of Insurance (Department) for approval. Once approved by the Department, insurers writing workers' compensation insurance must adopt these loss costs. Workers’ compensation insurers are required to make a filing to adopt new loss costs within 60 days of the approval date of those loss costs. The effective date of this adoption must be within 120 days of NCCI’s effective date of the approved loss costs. Any such filing is not considered to be a rate filing and is informational. However, insurers may submit a loss cost adoption as a part of a rate filing for new or revised loss cost multipliers (LCMs). LCMs, when filed alone or in combination with a loss cost adoption, continue to be subject to prior approval. Note that sufficient actuarial support must be included in filings proposing revisions to LCMs, loss modification factors, expense provisions, and/or related elements. Aggregate rate changes resulting from the adoption of NCCI loss costs and revisions to LCMs should be consistent with an insurer’s overall rate level indication. Filings which would result in prospective rates that are inadequate, excessive, or unfairly discriminatory will not be approved.
NCCI’s most recent loss cost filing was approved by the Department on December 15, 2021 with an effective date of February 1, 2022. Consequently, all workers’ compensation insurers are required to submit a SERFF filing to adopt these loss costs no later than February 13, 2022 with an effective date no later than June 1, 2022.
[Link to Bulletin 2016-02]