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2016 New Jersey Workers’ Comp Rate Forecast

2016 New Jersey Workers’ Comp Rate ForecastThe overall rates for New Jersey Workers’ Compensation is said to remain the same for 2016 as per the New Jersey Compensation Rating and Inspection Bureau. However, singular classification rates will change based on specific rating constituents.

Trend and Experience- The history of claims made during the last calendar year, and its two consecutive previous years, will be taken into consideration upon determining premiums. Paid and incurred losses will affect the individual company’s rate in addition to a trend factor of 4.8 percent is included to recognizes changing exposures and losses, says Insurance & Financial Advisor.

Expenses- The announcement stated that there is need for a change in the provisions for loss adjustment expense, general expense and the security fund, as well. However, the adjustment will only reflect .06 percent in price.

Benefits- The maximum weekly benefit amount for all claimants was increased from $855 to $871 per week and the minimum was adjusted from $228 to $232. However, for injuries that are permanent, the benefit amount will vary between the minimum and maximum, whatever was previously determined.

Catastrophe- A 3 cent charge per unit of terrorist exposure is included in each premium unless otherwise stated. Further, another catastrophic event such as a storm includes a 1 cent charge per unit of exposure.

Surcharges- Insurance & Financial Advisor also states that New Jersey law mandates application of separate policyholder surcharges to finance the Second Injury Fund and Uninsured Employers’ Fund.

These new regulations take effect on January 1, 2016 and each employer should take note of the summary of changes above. At Associated Specialty Insurance Agency (ASIA), we are dedicated to your clients’ Workers’ Compensation needs. Our customizable policies strive to provide coverage throughout our target states of New Jersey, Pennsylvania, New York, Connecticut, Delaware, Maryland, Virginia, North Carolina and Florida. For more information, contact our knowledgeable experts today at (866) 679-7457.

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