Corrective Action Order: Loss Cost Multipliers for South Carolina Assigned Risk Plan
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This document directs revised loss cost multipliers and rates for the South Carolina workers' compensation assigned risk plan to restore self‑sustaining funding; it affects assigned risk carriers, the NCCI as plan administrator, and employers insured through the assigned risk market in South Carolina.
A loss cost multiplier of 3.604 shall be applied to the April 1, 2026 South Carolina voluntary market loss costs to calculate revised assigned risk industrial class rates.
Revised assigned risk rates for federal and coal mine class codes shall be calculated via application of a loss cost multiplier based on the same expense and differential provisions underlying the industrial class multiplier and reflecting recent federal assessment and benefit levels.
NCCI provided formal notice dated October 16, 2025 that excessive losses are indicated in the South Carolina Assigned Risk Plan.
Assigned Risk Plan Criteria
Assigned Risk Rate Correction Criteria
Criteria and directives to restore assigned risk plan solvency and rate adequacy:
Legal basis for corrective action
Source: NCCI notice to Department
Actuarial recommendation based on data review
Policy objective for corrective action
ALL of the following
- Apply a loss cost multiplier of 3.604 to the April 1, 2026 South Carolina voluntary market loss costs for industrial class codes to calculate revised assigned risk industrial class rates.
Specified multiplier and reference loss costs
- Calculate revised assigned risk rates for federal and coal mine class codes by applying a loss cost multiplier derived from the same expense and differential provisions underlying the industrial-class 3.604 multiplier and reflecting the most recent federal assessment and benefit levels.
Adjustment rule for federal and coal mine classes
Required Rate-setting Directive
Rate‑setting directive: apply specified loss cost multiplier
Apply a loss cost multiplier of 3.604 to the April 1, 2026 South Carolina voluntary market loss costs to calculate revised assigned risk industrial class rates. Calculate revised federal and coal mine class assigned risk rates by applying a loss cost multiplier derived from the same expense and differential provisions used for the industrial-class 3.604 multiplier and adjusted to reflect the most recent federal assessment and benefit levels.
- Industrial class rates: multiply April 1, 2026 voluntary market loss costs by 3.604.
- Federal and coal mine classes: use a multiplier based on the same expense/differential provisions as the industrial multiplier and adjusted for recent federal assessment and benefit levels.
Statutory Basis and Definitions
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