GOVERNOR
    GENERAL NOTICES/ERRATA
    BOARD OF AUDIOLOGY AND SPEECH-LANGUAGE  PATHOLOGY
    Notice of Periodic Review
    18VAC30-20, Regulations of the Board of Audiology and  Speech-Language Pathology.
    The Board of Audiology and Speech-Language within the  Department of Health Professions is preparing to conduct a periodic review of  its regulations.
    The comment period begins on July 5, 2010, and ends on August 4,  2010.
    The regulations may be viewed online at  http://regulations.legis.virginia.gov (Title 18, Agency 30, Chapter 20) or  http://www.dhp.virginia.gov/aud/aud_laws_
  regs.htm, or copies will be sent upon request.
    If any member of the public would like to comment on these  regulations, please send comments by the close of the comment period to Elaine  J. Yeatts, Agency Regulatory Coordinator, Department of Health Professions,  9960 Mayland Drive, Suite 300, Richmond, VA 23233, FAX (804) 527-4434, or email  elaine.yeatts@dhp.virginia.gov.
    STATE CORPORATION COMMISSION
    Bureau of Insurance
    May 26, 2010
    Administrative Letter 2010-05
    To:  All Insurers Licensed to Write Workers' Compensation  Insurance In Virginia
    Re:  Revised Form  WCLC VA for Insurer Expense Multiplier Filings, Related Rules, and Tiered  Rating; Withdrawal of Administrative Letter 2005-03
    This administrative letter introduces a revised adoption form,  WCLC-VA (05/10), for use in filing insurer expense multipliers, related rules,  and supplementary rate information for workers' compensation insurance. In  addition, this administrative letter introduces the use of tiered rating plans  for workers' compensation insurance. Administrative Letter 2005-03, which  included the original adoption form, WCLC-VA (05/05), is hereby withdrawn.
    The National Council on Compensation Insurance (NCCI) files  loss costs for the voluntary workers' compensation insurance market on behalf  of all insurers licensed to write this coverage in Virginia. Such loss costs  supersede previously-approved loss costs and must be used by all insurers for  policies effective on or after the effective date prescribed in the State  Corporation Commission's approval order. A given insurer's workers'  compensation rates will then be the approved NCCI loss costs modified by that  insurer's filed expense multiplier. Expense multiplier filings are accepted on  a file-and-use basis and apply to policies effective on or after the requested  effective date or the date received by the Bureau, whichever is later. Insurers  may not file to delay or change the implementation date of the approved NCCI  loss costs. 
    In addition to its expense multiplier, each insurer must also  file any expense constant, premium discount table, or minimum premium formula  that will be used in rating workers' compensation policies. Insurers using the  NCCI small deductible plan must file the variable expense multiplier and safety  factor that will be used to calculate deductible credits. Insurers writing  retrospectively-rated policies must file the values used in premium  calculation, including expected loss ratios, tax multipliers, table of expense  ratios, excess loss premium factors, and loss development factors. Each insurer  must also file a drug-free workplace premium discount rule in compliance with § 65.2-813.2  of the Code of Virginia. These filings are accepted on a file-and-use basis.  Any exceptions to the approved NCCI manual of rules must also be filed.  Insurers should not re-file rules already filed on their behalf by NCCI.
    Pricing programs reflecting tiered rating are also permitted.  However, certain requirements must be met in order to comply with §§ 38.2-1904  and 38.2-1906 of the Code of Virginia. If an insurer wishes to use tiered  rating, the insurer must file the multiplier(s) it will use for each tier. In  addition, the insurer is required to file eligibility criteria applicable to  new and renewal policies for each tier. The criteria for assignment must be  objective and mutually exclusive, allowing a risk to qualify for only one  rating tier.
    In addition to filing eligibility criteria, insurers are  required to re-evaluate each policy at renewal to ensure that the appropriate  rates are applied in accordance with the filed eligibility criteria. The filed  rules must reflect this requirement.
    Insurers are required to use the attached form WCLC-VA (05/10)  to file new or revised expense multipliers in combination with any of the other  rating elements outlined above. If filing amendments to exception pages on  file, the insurer should file only the pages being changed. Pages not being  amended need not be re-filed. If filing exception pages only with no change in  multipliers, use of the WCLC-VA form is not necessary. The insurer should  simply submit its exception pages with a clear explanation of the changes. Rate  certification form COF-1 (05/05) must also be completed and submitted with each  filing (see Administrative Letter 2005-01). 
    An insurer electing to file expense multipliers that vary by  classification code may file its primary multiplier and up to 27 exceptions by  listing the primary multiplier and exceptions on page 1 of form WCLC-VA  (05/10). Any insurer electing to file more than 27 exceptions should attach a  schedule of its multipliers when submitting the WCLC VA (05/10). A separate  WCLC VA (05/10) must be filed for each tier.
    Any modification of, or deviation from, the approved NCCI loss  costs (other than the filed expense multiplier) is deemed to be a filing of  independent workers' compensation insurance rates and is, therefore, subject to  the 60-day delayed-effect provisions of § 38.2-1912 of the Code of  Virginia. If the indicated multiplier meets or exceeds unity (1.00), any  selected multiplier less than unity will be considered a deviation from loss  costs, subjecting the insurer's filing to the delayed-effect provisions.  Filings reflecting modifications or deviations from loss costs require the  submission of final rates in lieu of a multiplier. Exceptions to NCCI rules  that impact premiums will also be deemed to be independent rate filings subject  to the delayed-effect statute. In addition, large deductible plans for workers'  compensation insurance are subject to the 60-day delayed-effect provisions of § 38.2-1912  unless exempted from filing requirements by § 38.2-1903. Section 38.2-1903  also sets forth exemption criteria for certain retrospective rating plans.
    Filings subject to § 38.2-1912 must include actuarial  support of the filing and the insurer must certify that it has notified the  Division of the Consumer Counsel of the Office of the Attorney General that the  filing has been made. The filing should propose an effective date which is at  least sixty days after the date the filing is received by the Bureau of  Insurance. Under Virginia statute the filing is not deemed made until all  necessary data requested from the insurer is furnished. If the initial  submission does not include all necessary data, the earliest the filing can be  approved is 60 days from the date the filing is deemed complete.
    Any questions related to this administrative letter may be  directed to Sandra Mawyer, Principal Insurance Market Examiner, Commercial  Casualty Rates and Forms Section, Property and Casualty Division, telephone (804)  371-9197, or email sandra.mawyer@scc.virginia.gov.
    /s/ Alfred W. Gross
    Commissioner of Insurance