Minnesota Basic Manual - MWCIA

1 Minnesota Basic ManualMinnesota Basic Manual 2006 EditionOriginal Printing Effective January 1, 2022 2006 Minnesota Workers Compensation Insurance Association, Inc. 1/2017 TABLE OF CONTENTSTOCiTable of ..P1A. ORGANIZATION OF Manual ..P1B. JURISDICTIONS WHERE Manual APPLIES ..P1C. JURISDICTIONS WHERE Manual DOES NOT APPLY ..P1D. PRIOR APPROVAL RATING SYSTEM ..P1 PART ONE RULES ..R1 INTRODUCTION APPLICATION OF Manual RULES ..R1 RULE 1 CLASSIFICATION ASSIGNMENT ..R2A. CLASSIFICATION SYSTEM ..R2B. EXPLANATION OF CLASSIFICATIONS ..R2C. CLASSIFICATION WORDING.

2 R6D. CLASSIFICATION PROCEDURES ..R8E. MISCELLANEOUS EMPLOYEES ..R13F. CHANGES OR CORRECTIONS IN CLASSIFICATIONS ..R14 RULE 2 PREMIUM BASIS AND PAYROLL ALLOCATION ..R16A. PREMIUM BASIS ..R16B. PAYROLL ..R16C. OVERTIME ..R19D. PAYROLL LIMITATIONS ..R20E. EXECUTIVE OFFICERS, MEMBERS OF LIMITED LIABILITY COMPANIES, PARTNERS, AND SOLE PROPRIETORS ..R22F. WAGES FOR TIME NOT WORKED ..R25G. INTERCHANGE OF LABOR ..R26H. SUBCONTRACTORS ..R27I. VOLUNTARY COMPENSATION INSURANCE ..R28J. VOLUNTEER WORKERS ..R28K. MIGRANT AND SEASONAL AGRICULTURAL WORKERS.

3 R28 Minnesota Basic Manual 2006 EditionOriginal Printing Effective January 1, 2022 2006 Minnesota Workers Compensation Insurance Association, Inc. 1/2017 TABLE OF CONTENTSTOCiiRULE 3 RATING DEFINITIONS AND APPLICATION OF PREMIUM ELEMENTS .R30A. EXPLANATION AND APPLICATION ..R30B. THREE-YEAR FIXED-RATE POLICY OPTION ..R44C. DOMESTIC WORKERS RESIDENCES ..R45 SUPPLEMENTAL PAGES ..S1A. Minnesota CONTRACTORS PREMIUM ADJUSTMENT PROGRAM ..S1B. EXCESS INSURANCE ..S2C. Minnesota SPECIAL COMPENSATION FUND (SCF) ASSESSMENT SURCHARGE ..S2D. POLICY CANCELLATION OR NONRENEWAL.

4 S2E. EMPLOYEE LEASING ARRANGEMENTS ..S3 APPENDIX A ..AA1 APPENDIX TWO CLASSIFICATIONS ..C1 CLASSIFICATION INTERPRETATIONS ..C110 USER S GUIDE ..UG1A. WORKERS COMPENSATION AND EMPLOYERS LIABILITY COVERAGE ..UG1B. ADDITIONAL SPECIAL CONDITIONS OR OPERATIONS THAT AFFECT COVERAGE ..UG2D. EXPLANATION OF ITEMS STANDARD POLICY INFORMATION PAGE ..UG3E. DISPUTE RESOLUTION AND APPEALS PROCESS ..UG6F. REFERENCE TABLES ..UG8G. EXAMPLES ..UG16 Index ..IN11st ReprintMinnesota Basic Manual 2006 EditionOriginal Printing Effective January 1, 2022 2006 Minnesota Workers Compensation Insurance Association, Inc.

5 1/2017 PREFACEP1 PREFACEPREFACE TO THE Minnesota Basic Manual FOR WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCEINTRODUCTIONThe Minnesota Workers Compensation Insurers Association, Inc. ( MWCIA ) has prepared this Minnesota version of the Basic Manual as a guide to users in identifying exceptions to the Basic Manual for Workers Compensation and Employers Liability Insurance published by the National Council on Compensation Insurance (NCCI). The format of this Manual begins with the 2001 edition of NCCI s Basic Manual and inserts, in appropriate places, Minnesota exceptions to that version of the Basic ORGANIZATION OF MANUALThis Manual has three parts.

6 Part One Rules Part Two Classifications and InterpretationsPart Three Supplemental Pages Special Rating Plans and ProgramsIn addition, this Manual contains a Minnesota User s JURISDICTIONS WHERE Manual APPLIESThis Manual is designed to provide the user with information on writing workers compensation insurance in the State of JURISDICTIONS WHERE Manual DOES NOT APPLYThis Manual is not for use in any jurisdiction other than the State of PRIOR APPROVAL RATING SYSTEMU nder Minnesota Law each carrier is obligated to file their own rate schedules, rating values, and spe-cial rating plans with the Minnesota Department of Commerce.

7 In establishing those rates and rating plans, a carrier may utilize pure premium base rates and other rating information contained in MWCIA s Minnesota Ratemaking Report. As used in this Manual , the term Carrier Rates means those rates and rating plans filed by a Minnesota licensed carrier with the Department of Commerce and approved for use under applicable provisions of Minnesota Basic Manual 2006 EditionOriginal Printing Effective January 1, 2022 2006 Minnesota Workers Compensation Insurance Association, Inc. 1/2017R1 RULESPART ONE RULESThis Manual contains rules that have been approved by the Minnesota Department of Commerce.

8 These rules cover the following topics:Introduction Application of Manual RulesRule 1 Classification AssignmentRule 2 Premium Basis and Payroll AllocationRule 3 Rating Definitions and Application of Premium ElementsINTRODUCTION APPLICATION OF Manual RULES1. Rules apply separately to each policy, except as provided in the rules related to premium discount and executive This Manual applies only to new or renewal policies whose effective date occurs on or after the effective date of this The effective date of a change in any rule or classification in this Manual is 12:01 on the date approved for use in Minnesota by the Department of Commerce as shown on the Manual page.

9 Unless otherwise specified, Manual rules apply based on policy effective dates, whether new or renewal and do not change during the policy Changes to this Manual made during a policy period are effective as of the next renewal date occurring on or after the date of change, unless otherwise The anniversary rating date is the effective month and day of the policy in effect and each anniversary thereafter unless a different date has been established by MWCIA or NCCI (if interstate rated). Refer to Rule 3-A-2 for more information. In Minnesota , anniversary rating dates are used to establish the effective dates of experience modifications and have no impact on policy rates or Manual rule changes.

10 Refer to the Minnesota Experience Rating Plan Manual for more information regarding the application of experience modifications with effective dates that are not the same as the policy effective MWCIA may determine the propriety of classification assignments and applicability of all Minnesota Basic Manual rules. MWCIA has the right to conduct inspections of operations, assign classifications, and determine the propriety of classification assignments for statistical reporting MWCIA has authority to conduct test audits and to require corrections in accordance with the results of the test audit for statistical reporting Appeals involving the application of the rules or classifications of this Manual may be resolved through the applicable administrative appeals process.