Glossary of Terms |
| ACORD APPLICATION |
| An application for worker's compensation insurance coverage. Typically used to receive an insurance quote from the Carrier, or a request to bind coverage. It contains pertinent payroll information, as well as important loss history (see Loss Runs) |
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| Cal/OSHA |
| California's Occupational Safety and Health Administration. Cal/OSHA enforces occupational safety and health regulations. They conduct worksite inspections and may issue citations to employers who fail to meet regulations regarding workplace safety, employee safety training, written safety programs, etc. |
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| CLASSIFICATION CODE |
| A four digit numerical description of an occupation which determines the insurance cost for that occupation. Example: Clerical employees are Classification Code 8810 |
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| CLOSED CLAIM |
| A worker's compensation injury that is finished. Example: the injured employee received medical care and has returned to work. There is no need for any future care. |
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| EXPERIENCE MODIFICATION |
| A factor calculated by the WCIRB (see below) based on an individual company's loss history. This factor, indicated by a percentage that is applied to the insurance rates, will decrease with a positive loss history, or increase based on a negative loss history. |
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| I.I.P.P. |
| Injury and Illness Prevention Plan |
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| INDEMNITY CLAIM |
| A worker's compensation injury that requires ongoing medical care and is accompanied by lost time from work. Examples: broken leg, strained back, etc.. |
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| LOSS RATIO |
| The ratio of dollars paid out by the insurance carrier for injuries vs. the total insurance premium collected by the carrier, for an individual business. |
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| LOSS RUNS |
| A report indicating the loss experience and earned insurance premium of a company. The report contains the: names of any injured, all expenses paid, and incurred, for each injury, and the loss ratio (see Loss Ratio) of expenses paid vs. premium earned. |
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| MEDICAL (ONLY) CLAIM |
| A worker's compensation injury that requires medical attention only. No further rehabilitation or therapy is required, and the employee losses no time from work. Example: cuts, scrapes, etc… |
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| MODIFIED/RETURN-TO-WORK PROGRAM |
| In the event a worker cannot continue their prior job functions due to an injury, this program enables them to return to work in a new, or modified, capacity. For example, a warehouse employee who hurt his back may be prohibited from lifting boxes, but may perform other lighter duties. |
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| MONOPOLISTIC STATE |
| State in which private insurance providers are not allowed to provide worker's compensation insurance to employers. The insurance is provided by the State Fund. |
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| N.C.C.I. |
| National Council of Compensation Insurance. The agency that publishes the classification codes for worker's comp insurance that is used by the States to set their base billing rates. |
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| OPEN CLAIM |
| A worker's compensation injury that is still ongoing. An open claim is “active” and remains on the books. Example: an injured employee requires continuing therapy or medical care for a past injury. OR, a litigated and/or disputed claim that has not been resolved. |
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| OSHA 300 LOG (Formerly OSHA 200) |
| A mandatory report that employers must keep of all work-related illnesses and injuries that go beyond first aid treatment. The report states the type of injury and any days missed by the injured workers. A summary form, the OSHA 300A Summary of Work-Related Injuries and Illnesses, must be posted in a spot accessible to all employees from February 1 through April 30 each year. Employers must keep this form on file for five years. |
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| RATE – BASE RATE |
| The cost, as a percentage, of a particular Classification Code. The Base Rate is the unadjusted book rate of an insurance carrier. |
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| RATE – INTERIM RATE |
| Usually refers to the Net Rate, PRIOR to the Experience Modification being applied |
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| RATE – NET RATE |
| The final rate for a classification Code after all factors have been applied: Experience Modification, premium discounts, and other rate modifiers |
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| RESERVES |
| Losses that an insurance carrier anticipates paying in the future for a worker's compensation injury. These future costs are held, or “reserved”, against any ongoing treatments, rehab or therapy the injured will require, or any future lost time from work. |
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| S.B. 198 (Senate Bill 198) |
| Senate Bill 198 requires every California employer to develop and maintain a written Injury and Illness Prevention Program (IIPP). This requirement is enforced by Cal/OSHA. |
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| S.I.C. CODE |
| Standard Industrial Classification (SIC) codes are 8-digit codes used by the government to categorize and uniquely identify business activities. SIC Codes are determined by the type of business and are not to be confused with Class Codes which are determined by the type of employee. |
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| W.C.I.R.B. |
| Worker's Compensation Insurance Rating Bureau. Based in Sacramento, this is the agency that oversees worker's compensation in the State of CA, sets classification codes and rates, and calculates Experience Modifications. |
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