How is experience rating handled for the various types of workers compensation policies issued for PEO arrangements?
• Master Policy- If eligible for experience rating, a single experience rating modification of the PEO applies to the master policy. Typically, when a client leaves a PEO arrangement written under a master policy, the PEO’s insurer reports the client’s payroll and loss data developed during the PEO arrangement to NCCI. The NC2745 Form—Workers Compensation Experience Rating for Former Clients of Labor Contractors, or any equivalent filed and approved state exception to this form, is the only acceptable format for reporting this data. Note: Complete payroll and properly valued losses for all years in the rating experience period must be resubmitted on the appropriately designated form prior to each renewal rating effective date. Upon receipt of the client’s data, NCCI will determine if the client is eligible for experience rating and produce an experience rating modification for the client, if appropriate. For most states that allow master policies, the client’s data reported to NCCI wil
