Note: Prior to using this function, implementation planning is required. Additionally, you will need to determine the following system settings in the Experience Modification Factor Import folder in Diamond System Editor:
Number of Records per Batch: This setting controls how many records are imported with each batch when importing NCCI files.
Import Directory: This setting determines the name of the directory where the NCCI files will be imported to.
Archive Directory: This controls where the system will copy the NCCI files after being imported.
Additionally, any user accessing Experience Rating Modification will need the following authorities listed in the Diamond Administration group:
Import Experience Modification: This controls the ability of a user to import the NCCI files into the system.
Apply Experience Modification: This controls the ability of the user to apply the NCCI records to the associated policies in the system.
Workers Compensation rates are usually provided on an annual basis from one (1) of two (2) types of different rating bureaus: State bureaus or NCCI (National Council on Compensation Insurance, Inc.) Rates / factors that are applied are called "Experience Rating Modifications," and depending on the status of the rates, the factors can be provided more frequently than once per year.
Experience rating is a method used for adjusting premium rates to show an individual employer's claims history. It is used to determine whether or not a discount or surcharge is applied depending on a good or poor claims record. This type of rating provides an incentive for promoting safety and injury in an employer's workplace.
Because rates are subject to change and sometimes are not finalized until after a policy has been issued, it is quite common for either the State bureaus or NCCI to submit the following types of rating modifications:
Preliminary Modification: This is one that uses rating values from the previously approved rate filing while a new rate filing is "Pending."
Contingent Modification: A "provisional" modification, or one that is used when the rating bureau cannot obtain some of the payroll and / or loss data, to produce a rate.
Final Modification: One that uses the rating values that have been approved for use in a specific state.
Revised Modification: This is one that has been changed due to a change in rating, classification or ownership.
In Diamond Processes, Experience Rating Modification currently uses the factors made available from NCCI (National Council on Compensation Insurance, Inc.).
Import NCCI Modification Factors: This process imports the data from information that is downloaded from a Web site / designated network directory at the client's site into Diamond via a flat text file process or an XML format.
Apply NCCI Modification Factors: This process is used to automatically endorse policies that have been imported from NCCI to the Policy Modifications queue.