Ohio BWC State Insurance Fund Manual

[Pages:118]Better Workers' Compensation Built with you in mind.

The Ohio Bureau of Workers' Compensation

Ohio BWC State Insurance Fund Manual

for Rating Year 2002

(July 1, 2002 ? June 30, 2003)

Rating Rules Premium Rates Index of Classifications

This is the 2002 State Insurance Fund Manual. It has been updated to reflect additions or changes to rules, manual classifications and rates that became effective July 1, 2002.

While the Bureau has made every effort to ensure the accuracy of the information in the State Insurance Fund Manual, the official rules are filed with the Secretary of State and with the Legislative Service Commission. The State Insurance Fund Manual may not be in official rule form and does not contain amendments to rules made subsequent to July 1, 2002.

To receive the 2002 State Insurance Fund Manual, please enter complete mailing address (no P.O. Boxes, please) on the reverse side of the post card below. You may also FAX your request to (614) 728-0790 or call 1-800-OHIO-BWC.

NO POSTAGE NECESSARY

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BUSINESS REPLY MAIL

FIRST CLASS MAIL PERMIT NO. 1141 COLUMBUS, OHIO POSTAGE WILL BE PAID BY ADDRESSEE PUBLICATIONS B 2 LEVEL BUREAU OF WORKERS COMPENSATION 30 W SPRING ST COLUMBUS OH 43215-9455

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To receive the 2002 State Insurance Fund Manual, complete this post

card entering your mailing address (NO P.O. BOXES, PLEASE) and the

quantity needed .

Quantity

Name Address City

State

Telephone

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FAX

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ZIP Code

You may also FAX your request to (614) 728-0790 or call 1-800-644-6292

Better Workers' Compensation Built with you in mind.

BWC Programs and Services

BWC programs and services available

Group Rating* The group-rating plan allows employers who are substantially similar in industry to group together to potentially achieve lower premium rates than they could otherwise achieve as individual employers. Please see Rules 4123-17-61 through 4123-17-68 on pages 81 to 88.

Self-Insurance* This is a program for large employers with the financial ability to self-insure their operations. Self-insuring employers pay their own workers' compensation claims and pay various assessments to BWC based on the amount of their paid compensation. This program does not apply to public employers. Please see rules 4123-17-32 on page 48, 4123-17-40 on page 50 to 51 and 4123-19-01 through 4123-19-16 on pages 92 to 105.

Retrospective Rating Program* Retrospective rated employers agree to assume a portion of the risk in exchange for a reduction in premiums. See Rules 4123-17-41 through 4123-17-53 on pages 51 to 56.

Marine Fund Coverage BWC and private insurers provide this coverage under the Longshore and Harbor Workers Act.

Black Lung Coverage BWC and private insurers offer this coverage to comply with the requirements of the Federal Coal Mine Health and Safety Act.

$1,000 Medical Only An enrolled employer may pay up to the first $1,000 of any medical-only claim. These claim costs paid directly by the employer are not included in the employer's experience. Please see Rule 4123-17-59 on pages 79 to 81.

*Information on these programs is available on BWC's Web site:

PLEASE SEE REVERSE SIDE FOR ADDITIONAL PROGRAMS

NO POSTAGE NECESSARY

IF MAILED IN THE

UNITED STATES

BUSINESS REPLY MAIL FIRST CLASS MAIL PERMIT NO. 1141 COLUMBUS OHIO POSTAGE WILL BE PAID BY ADDRESSEE

ATTN RISK TECHNICAL SERVICES LEVEL 22 BUREAU OF WORKERS' COMPENSATION 30 W SPRING ST COLUMBUS OH 43215-9898

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Better Workers' Compensation Built with you in mind.

BWC Programs and Services

BWC programs BWC doesn't just process claims, but works to prevent them. BWC offers a variety of programs and services to prevent accidents and reduce your workers' compensation costs at no additional fee to you as an Ohio employer. So, take advantage and save. Information on BWC programs and services is available on our Web site at or by calling 1-800-OHIOBWC. You can learn about BWC's safety programs and materials available in the Safety services section.

Transitional WorkGRANT$ program BWC's Transitional WorkGRANT$ program provides up to 80 percent of program development costs up to a set amount to qualified employers who implement a transitional work program for their employees. Employers' remaining 20-percent investments can save them thousands of dollars in disability costs and premium impacts. Qualified public and private employers with approximately 500 employees are eligible to receive up to three grants to implement transitional work programs in different departments or divisions of their businesses.

Premium Discount Program + (PDP+) BWC has redesigned and improved its Premium Discount Program. PDP+ is for employers with up to a .90 experience modification factor. Employers can receive discounts of 10 percent the first year, 10 percent the second year and 5 percent the third year over the three years of the program; plus cash rebates of as much as 20 percent per year for meeting certain safety performance measurements.

Drug-Free Workplace Program (DFWP) and Drug-Free EZ program DFWP offers private and public state-fund employers premium discounts of between 10 percent and 20 percent for up to five years for establishing a safer and more cost-effective workplace through a substance-free environment. Like DFWP, the Drug-Free EZ program makes it possible for Ohio employers with 25 or fewer employees to receive premium discounts of up to 20 percent for up to five years by implementing a substancefree environment in their workplaces.

*Information on these programs is available on BWC's Web site:

PLEASE SEE REVERSE SIDE FOR ADDITIONAL PROGRAMS Please complete the business reply postcard below to order additional information on any of the above programs. Please check appropriate boxes next to the programs for which additional information is desired.

Drug-Free Workplace Program (DFWP)* Premium Discount Program + (PDP+)* Transitional WorkGRANT$ Program Employer Services Safety & Hygiene Services* SafetyGRANTS*

Employer name

$1,000 Medical Only Black Lung Coverage Group Rating Program* Marine Fund Coverage Retrospective Rating Program* Self-Insurance*

Contact person

Street address

City

Telephone number

(

)

State

ZIP Code

Policy number (found on your Certificate of Coverage)

Better Workers' Compensation Built with you in mind.

The Ohio Bureau of Workers' Compensation

Ohio BWC State Insurance Fund Manual

for Rating Year 2002

Rating Rules Premium Rates Index of Classifications 1-800-OHIOBWC ?

Insurance Fund Manual

7

Rev. July 1, 2002

OHIO BUREAU OF WORKERS' COMPENSATION STATE INSURANCE FUND MANUAL

RATING RULES, PREMIUM RATES AND

INDEX OF CLASSIFICATIONS

Effective July 1, 2002

GOVERNOR, STATE OF OHIO Bob Taft

WORKERS' COMPENSATION OVERSIGHT COMMISSION William Sopko, Chairperson Thomas H. Bainbridge William A. Burga George L Forbes Mary Beth Carroll

EX OFFICIO MEMBERS Senator Leigh Herington

Senator Scott Nein Representative Ron Young Representative George Distel

OHIO BUREAU OF WORKERS' COMPENSATION James Conrad, Administrator/Chief Executive Officer

INDUSTRIAL COMMISSION OF OHIO William E. Thompson, Chairperson Patrick J. Gannon, Member Donna Owens, Member

AN EQUAL OPPORTUNITY EMPLOYER

Rev. July 1, 2002

8

Insurance Fund Manual

PREFACE

EDITOR'S NOTE: Some of the rules contained in this manual still contain references to the "Workers' Compensation Board." These rules had not been changed at the time of publication. The wording "Workers' Compensation Oversight Commission" is implied in these situations. These rules should be changed in time for the publication of the 2003 State Insurance Fund Manual.

The State Insurance Fund Manual is designed to provide essential information to employers concerning their relationships to the State Fund. The manual contains the rules for rating employers, the rules of procedures for the establishment of coverage, an alphabetical index of employer classifications, a table of current basic rates for each classification and a numerical index of the classifications.

The general rating rules cover such subjects as the premium rates applicable to the employer, eligibility for experience rating, reporting of payroll for premium purposes, premium security deposit, auditing of the employer's records and transfer of coverage from an employer to its successor.

The rules of procedure set forth in the manual state the manner in which an employer establishes workers' compensation coverage in the State Fund.

Ohio law requires that the Bureau of Workers' Compensation classify occupations and industries according to the hazard that they present. Although the number may vary slightly from year to year, there are approximately 216 classifications of hazard. When coverage is established, an underwriter assigns a classification or classifications to the employer according to the type of operation that exists. If the employer later adds to, eliminates from, or changes the nature of operations, it may be necessary to add, eliminate or change one or more of the classifications that are assigned. In the alphabetical index there is an alphabetized listing of employer operations as they are commonly known and there is a reference to the applicable classification of hazard. The classification is identified by a number known as the manual number. Manual numbers are used to simplify reference since a full description would be cumbersome. The premium rates are listed by manual number, and manual numbers are used on the payroll reports. Obviously, the alphabetical list of employer operations cannot be complete in every detail. If you should not find the operation you are seeking, check for it under another common designation. For example, you will not find "filling station" in the alphabetical listing, but you will find "gasoline or oil dealers and drivers".

In the table of premium rates found in the manual there is a numerical listing of the classifications by manual number. The table shows the basic premium rate for each classification. Each year a basic rate for each classification is computed by the bureau using data from the oldest four of the latest five calendar years of loss experience in that classification. The effective date of the annual rate revision is July 1. At that time any changes in the number or type of classification are also made, and any changes in rules are effected.

The Marine Industry Fund and Coal-Workers' Pneumoconiosis Fund (black lung) rates are expressed in their respective rate tables in terms of an amount per $100 of the covered employer's applicable payroll. The rates listed include administrative costs. The Disabled Workers' Relief Fund assessment is not applicable to payroll reported under these two types of coverage. These rates may be adjusted or revised at any time during the year. However, barring unforeseen or extreme circumstances they will likely, for convenience, be revised annually on July 1 concurrent with State Fund (private employer) rates.

Private employer rates are expressed in the rate table in terms of an amount per $100 of the covered employer's applicable payroll. The employer is required to pay assessments for administrative cost and the Disabled Workers' Relief Fund in addition to the premium contribution.

The numerical index of classifications sets forth the types of employer operations that are included in each of the classifications.

Throughout the manual, the term "Not Otherwise Classified" (N.O.C.) is used. The designation indicates that the classification is available for that particular operation only if the operation is not specifically set forth as a part of another classification. For example, commercial-machine shops, not otherwise classified, are assigned manual 3632. Agricultural implement manufacturing in manual 3504 would include the machine shop used in connection with that activity.

Employers are encouraged to present any questions that they may have on the subjects covered in the manual. For inquiries concerning actuarial, call (614) 752-8318. This includes premium rates for classifications.

For inquiries concerning Policy Services matters, call 1-800-OHIO-BWC (644-6292). Policy Services matters include certificates of coverage, classifications, establishment, transfer or cancellation of coverage, out of state employment, payroll reports and premium payments, premium security deposits, remittance and refunds, compliance with the law regarding the payment of premiums, audits, and other account maintenance matters.

Copyrighted material from the National Council on Compensation Insurance contained in this manual is reprinted with permission of the National Council on Compensation Insurance, all rights reserved.

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