Statistical Plan - 2008 Edition
Rule 4-E-2-a Catastrophe Number
(1) Nonextraordinary Loss Event Claims
A Nonextraordinary Loss Event catastrophe is defined as any accident (one occurrence) resulting in two or more reportable claims. If there is more than one catastrophe under the policy, each succeeding catastrophe number must be increased by one. A separate series of catastrophe numbers (01–10) must be used for each state under a policy on which a catastrophe occurred.
(2) Extraordinary Loss Event Claims
An Extraordinary Loss Event (ELE) catastrophe is a significant loss event from a workers compensation (WC) perspective, which is determined by NCCI on a case-by-case basis. When an ELE catastrophe code has been established and identified by NCCI, report the specific catastrophe number for each claim. The series of ELE catastrophe numbers are 11–99.
Refer to NCCI’s Unit Statistical Reporting Guidebook for additional information.
For experience rating purposes, a catastrophe would be subject to the Experience Rating Plan rule that addresses accidents involving two or more persons, per Eperience Rating Plan Manual, Rule 2-D-3-b:
"Accidents involving injuries to two or more persons shall be limited to the multiple claim accident limitation in the Tables of Weighting and Ballast Values, which is twice the normal accident limitation. The actual primary loss for such accidents is limited to $10,000 - twice the normal maximum primary value."
In Indiana, the current (1/1/20 rates) state per claim accident limitation is $196,000. Double that amount for state multiple claim accident limitation at $392,000.
Item B-1383—Catastrophe Provision—Certified Terrorism Losses
The original Catastrophe provision was created via Item filing B-1383 as part of the defined in Terrorism Risk Insurance Act (TRIA)of 2002.
This filing became effective in Indiana for new and renewal business at 12:01 a.m. on
December 20, 2002 for voluntary policies, and
January 1, 2003 for assigned risk policies.
The filing included the following components:
loss cost ($0.01) and rate ($0.02) for a "certified" terrorism acts catastrophe loading
terrorism endorsement with premium disclosure statement
stat code 9740 for reporting losses
updated premium algorithm