Post on 13-Nov-2021
Ellen Sonkin—AIGJuly 23, 2014
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Confirm/validate the current state of PEO data reporting
Select best recommendation for enhancements within the current industry Data Standards
Review current industry Data Standards for POC and ER
Evaluate Data Needs for POC and ER
Evaluate carrier reporting requirements for regulatory compliance
Identify any enhancements to improve efficiency- With least disruption- Within industry standards
Assess all alternatives and recommendations
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To identify any issues/gaps/challenges in POC reporting: Reviewed current industry Data Standards (WCPOLS) for
Proof of Coverage◦ Evaluated PEO/Client Data Elements, including policy
types, P/C indicator, Adds and Deletes Reviewed reporting rules/requirements (IAIABC) that
vary by state◦ Client-level data—Employer legal name, job location,
FEIN Discussed state-specific requirements (NE, NV, IL) for
client notification of coverage and its status Discussed who is responsible party (PEO or Insurer) for
client notification and coverage status◦ Consider co-employees coverage; Replacement
coverage; Gaps in coverage
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Carriers have difficulty in obtaining client status and data details from PEO
Communications and education between the carrier and the PEO, and the PEO to its clients, such as:◦ Disseminating coverage information to the PEO
clients◦ Timeliness of coverage changes from the PEO to
the carrier for compliance reporting Identify changes at proper level to ensure
compliance◦ Communication of termination of coverage or
addition of coverage within POC compliance timeframes◦ Receipt of current client list to carrier from PEO
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Disconnects that may result in proof of coverage problems and/or queries Lack of establishing the accurate legal name and other
details and then maintenance of same over time Carrier challenges of validating data after receiving from
PEO Client changes to different business types, e.g. LLC and
or LLP◦ Clients or PEOs not updating all of their records in all
states where they conduct business◦ Client companies may fail to update the PEO with the
new changes in Names, Business types and FEINS, etc. Delayed client termination (sometimes month or two) Out of sequence of client adds/deletes
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Carrier’s system limitation of adding client level detail◦ Some carriers may have limited space in
legacy systems Dependency on space allocations and data
input into various automation programs at multiple entry points and expenses associated with upgrades
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Lack of knowledge or misinterpretation of PEO/Client information from POC Users at State level
Searching outdated or deleted of W/C names and/or companies◦ Other state records or systems have not been updated in years
Lack of knowledge of how to look up a Master/MCP policy in POC database
States contact carriers to:◦ Verify if the PEO is covering all the employees of the client
company or if a client also maintains a separate WC policy in their own name
◦ Instruct clients to update their other state employer records with other state agencies Transmitted POC data is accurate, but in a different name than
displayed in other state records with other state agencies Separate policies in clients names are being misinterpreted as
duplicate coverage
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Current reporting process from carrier to NCCI is sufficient, and all data fields to support the reporting of PEO policies
and client detail data exist today
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Have better communication between carrier and PEO, and PEO to its clients
Develop best practices/guidelines for carriers, PEOs and Client Companies (e.g. Published by NAPEO)
Provide education seminar or webinar (e.g. NCCI training for States):◦ New user training for state regulators to
access and inquire on database, and how to find the client details when the policy is in the name of the PEO
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Discussed current Data Requirements for Experience Rating◦ Reviewed manual Form NC2745◦ Explored any improvements to current requests for split data
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Carrier’s system limitation of adding clients Carriers currently provide manual Form NC2745 upon
PEO request only Obtaining/Identifying client level data◦ Reviewing audits and going back to history for client
exposure◦ Summing exposure information for client data
Identifying accurate payroll and claims information Getting data details from PEO for each client◦ Receiving and maintaining up-to-date changes
Contingent Experience Ratings result due to no trigger mechanism to follow up for updated losses/closed status on Form NC2745
Application of multiple revised PEO ratings
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No propose changes to industry WCSTAT standards or records for unit statistical reporting of Master Policy or
MCP policies
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Implement revise rules to keep experience of former clients in PEO’s modification—no revised rating of PEO
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Implement electronic reporting method to replace NC2745 Manual Form◦ Propose Electronic Layout (PEO Split Format) using NC2745 Manual Form data elements◦ Add new fields◦ Consider any implementation challenges for new PEO writers
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Suggest that NCCI create tracking mechanism to advise carrier for initial and subsequent requests of Client split data◦ Set due dates◦ Trigger when a client leaves the PEO NCCI receives data (Delete Employer
Transaction via endorsement) through WCPOLS
◦ Follow up for updated losses and closed status of claims
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