PREFACE

This manual is applicable to North Carolina only and is administered by the North Carolina Rate Bureau (NCRB or Bureau) in accordance with North Carolina General Statute 58-36-1. Payroll for other states listed on multi-state policies would be subject to rules and/or regulations as stipulated in the other states’ applicable manual(s).

The NC Basic Manual is divided into three parts:

• PART 1 – RULES

• PART 2 – CLASSIFICATIONS

• PART 3 – LOSS COSTS, RATES, AND MISCELLANEOUS VALUES

Application of Manual Rules:

1. The rules in this manual apply to each policy, except as provided in the rules pertaining to premium discount and executive officers.

2. The rules in this manual apply from the policy effective date that occurs on or after the effective date of this manual.

3. The effective date of any change to a rule, classification, rate, or loss cost is 12:01 a.m. on the date approved for use.

4. Rule changes made during a policy period are effective as of the policy effective date on or after the date of the rule change, unless otherwise indicated in this manual.

5. The rules in this manual are based on policy periods not longer than one year.

   1. A policy issued for a period not longer that one year and 16 days is treated as a one-year policy.

   2. A policy issued for a period longer than one year and 16 days, that is not a three-year fixed-rate policy, is a long-term policy and treated as follows:

      • The policy period is divided into consecutive 12-month units.

      • The Policy Period Endorsement is used to designate the last unit of less than 12 months as a short-term policy.

      • Rules, classifications, and rates are applied to individual units of 12 months each as if a separate policy had been issued for each unit.

6. The Bureau has full authority to classify the workers compensation risks within the state of North Carolina. The Bureau has the right to inspect risks and to determine the proper classifications in accordance with manual rules and shall provide such classification code assignments to the carrier of record.  The classifications authorized by the Bureau must be used in writing any workers compensation insurance policy or policies for such risks.  Policies on risks not previously classified by the Bureau must be written on the basis of classifications selected in accordance with the best judgment of the insurance carrier.  Such classifications are subject to change in conformity with any classifications authorized by the Bureau.

7. The Bureau has authority to conduct test audits and to require corrections in accordance with the results of the test audit.

8. Appeals involving the application of any rules or classifications shown in this manual may be resolved in accordance with the “Procedures for Submitting Workers Compensation Disputes to the North Carolina Rate Bureau”.

9. Interpretation of North Carolina or federal workers compensation laws pertaining to coverage issues is not within the jurisdiction of the NCRB.

10. Some of the rules in the North Carolina Basic Manual may have exceptions or special rules applicable for assigned risk policies.

©  North Carolina Rate Bureau.  Contains the copyrighted material of the National Council on Compensation Insurance, Inc. ("NCCI") © 1986 -  NCCI. All rights reserved. Used with permission.