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Property & Casualty > Workers’ Compensation > FAQs
Workers' Compensation Rate and Form Filings Frequently Asked Questions
 
  • What is Workers’ Compensation Insurance?
    • Workers' Compensation is insurance mandated by law, paid for by an employer, that provides benefits including payment for medical care and lost wages if an employee becomes disabled because of an injury or illness related to their job. Generally, all employees are covered by the Workers' Compensation Law, and all workers are considered to be employees unless they show otherwise by meeting statutory requirements for being an independent contractor. If death results, benefits are payable to the employee’s surviving spouse and dependents as defined by law RSA 281-A.
  • How are workers classified under Workers’ Compensation insurance?
    • Employees are split into many different ‘classifications’ within the Workers’ Compensation insurance program. There are approximately 600 of these classifications, which are based on the type of work being done. Some examples of classifications are ‘clerical office employees NOC’, ‘concrete or cement work’, ‘photoengraving’ and ‘school bus drivers employed by school district-&driver’.
  • How is the premium for a Workers’ Compensation policy determined?
    • The employer pays for the Workers’ Compensation coverage for their employees, and with a couple of exceptions the premium is based on units of $100 of payroll. Each classification is associated with a rate that is determined based upon the riskiness and loss experience of that classification. Premium is then estimated by multiplying the classification rate times the number of units of workers’ payroll. When the policy is written, the employer pays an estimate of the annual premium based on their expectation about payrolls during the upcoming policy term. At the end of the policy term, the insurer completes an ‘audit’ of the policy, and determines how the total actual payroll varies from that estimate. Based on this audit, the employer may have to pay additional premium or may get some premium back.
      It is important to note that premiums are NOT BASED ON THE NUMBER OF EMPLOYEES, but on the total payroll of the employees. By utilizing payroll, the policy can adjust when some employees may be full-time and some part-time, the employer may hire temporary employees or when the number of employees, the type of work being performed or the business environment varies throughout the policy term. This flexibility may easily accommodate changes necessitated by the employer adding, removing or reassigning staff.
      In fact, an employer may even have a Workers’ Compensation policy that is written on an ‘if-any’ basis - meaning that there is no payroll estimated at the beginning of the policy (except perhaps the employer himself.) However, if the employer hires anyone during the policy term the Workers’ Compensation policy will provide coverage, and the employer will pay additional premium at audit based on the actual payroll.
  • A simple example of premium development for a Workers’ Compensation policy:
    • Harvey’s Ice Cream Shop Estimated Annual payroll: $60,000
      Classification: Stores retail
      Class Rate: $2.50/ hundred of payroll
      Premium calculation: $2.50 x 600 = $1,500
      Total policy premium: $1,500
      After the audit, the insurer finds that the actual payroll was $55,000.
      Premium adjustment: Estimated payroll minus actual payroll equals $5,000
      Premium calculation: $2.50 x 50 = $125
      Return premium: $125
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  • Registration - Carriers New to New Hampshire
    • In addition to the New Hampshire Insurance Department filing requirements you are also required to contact the NH Labor Department at
      603-271-3175 prior to issuing any Worker's Compensation policy or coverage in New Hampshire. NH Labor Department Administrative Rules
      LAB 303.06 and LAB 304.
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  • Claims & Coverage Questions
    All Workers’ Compensation claims inquiries and questions regarding whether or not a worker is required by worker's compensation insurance are to be addressed to the New Hampshire Department of Labor, 95 Pleasant Street, Concord, NH 03301.
    • In-State and Local: 1-603-271-3176
    • Toll Free: 1-800-272-4353 (In State only)
    • http://www.nh.gov/labor From here you can access Labor Law RSA 281-A and Administrative Rules
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  • How to Obtain Assigned Risk Coverage in New Hampshire
    The National Council on Compensation Insurance (NCCI) is the administrator for the assigned risk market for NH. Applications may be submitted.
    • Electronic Interface – An application may be submitted electronically through NCCI. For further information on this option, contact NCCI's Customer Service Center at 1-800-622-4123.
    • Telephone Submission – An application can be submitted by telephone by contacting the NCCI Customer Service Center at 1-800-622-4123.
    • Mail Submission – Applications are to be submitted to: NCCI, Attn: Treasury Department, PO Box 3035, Boca Raton, FL 33431
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  • Executive Officer and LLC Member Exclusion – How to Apply
    In New Hampshire you can exclude up to three executive officers or limited liability members – RSA 281-A:18a.
    • You must advise the insurance company of the executive officers or LLC member's names, titles and dates of birth. This information should be included on Page 2 of the ACORD 130 Worker s’ Compensation Application.
    • With this information, the insurance company completes the 6WCex form.
    • Copies of the 6WCex form are sent to the New Hampshire Department of Labor and to each excluded executive officer or limited liability member.
    • The WC policy is endorsed with form #WC000308 to indicate that these executive officers or limited liability members are excluded from coverage. If exclusion is not on file with the New Hampshire Department of Labor, the executive officers or limited liability members will be included for coverage.
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  • Maximum and Minimum Payrolls for 2013 and 2014 - Executive Officers of a Corporation
    • 2013 Maximum - $3600 per week - $187,200 per year
    • 2013 Minimum - $450 per week - $23,400 per year
    • 2014 Maximum - $3700 per week - $192,400 per year
    • 2014 Minimum - $450 per week - $23,400 per year
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  • Maximum and Minimum Payrolls for 2013 and 2014 - Executive Officers of an Unincorporated Association
    • 2013 Maximum - $1800 per week - $93,600 per year
    • 2013 Minimum - $225 per week - $11,700 per year
    • 2014 Maximum - $1800 per week - $93,600 per year
    • 2014 Minimum - $225 per week - $11,700 per year
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  • Sole Proprietor/Partners - Flat Payroll Charge
    • 2013 - $23,500
    • 2014 - $24,000
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  • Experience Modifications
    Experience modifications are to be obtained from NCCI at 1-800-622-4123.
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  • Termination of Workers’ Compensation Coverage – RSA 281-A:9
    The carrier shall file a written termination notice with the New Hampshire Labor Commissioner and shall send a copy of the notice to the employer. Terminations shall take effect:
    • Non-Payment – 30 days after the date of the termination notice is filed.
    • In all other cases – 45 days after the date of termination notice is filed.
    Workers’ Compensation is excluded from cancellation provisions of RSA 417-C.
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  • Process to follow if you have a dispute regarding your Worker’ Compensation classification, experience modification or manual rules
    • Discuss with your agent and company.
    • Contact NCCI – 1-800-622-4123, they will be able to provide you with detailed descriptions of the classifications in question.
    If you are still not certain that you are in the correct Workers’ Compensation classification, then you should request an NCCI inspection. There will be a charge for this inspection.
    After this inspection, if you still feel that the Workers’ Compensation classification of your business is incorrect, then you may request a hearing. This request is to be sent to NCCI, Inc., 901 Peninsula Corporate Circle, Boca Raton, FL 33487. This request is to include:
    • A statement signed by you that a hearing is requested.
    • A clear, concise statement of the issue or question to be resolved.
    • A copy of any relevant policy of insurance, Workers’ Compensation experience rating worksheet and/or audit information.
    • A statement of the specific rules or statutes you believe may be relevant.
    • A statement of the relief you are requesting.
    A hearing will be scheduled in New Hampshire and your complaint will be heard by the New Hampshire Workers’ Compensation Classification and Rating Appeals Board. This Board is made up of two members from agencies, two members from insurance companies, two public members, a non-voting member from NCCI and a non-voting member from the New Hampshire Insurance Department. You will receive the decision within thirty days of this hearing.
    If you still feel aggrieved by this decision, you may petition the Insurance Commissioner for a hearing at the New Hampshire Insurance Department pursuant to RSA 400-A:17 or RSA 412:41 and in accordance with the provisions of NHCAR Part INS 200 and RSA 541-A.
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New Hampshire Insurance Department | 21 South Fruit Street, Suite 14 | Concord, NH 03301
Phone 603.271.2261 | Fax 603.271.1406 | Consumer Hotline 1.800.852.3416

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