Skip to Content

Special Assessment for Systemic Misreporting of Unit Statistical Report Data

Print page

Special Assessment for Systemic Misreporting of Unit Statistical Report Data

In 2010, the WCIRB Governing Committee adopted a program that levies assessments on insurers for having submitted inaccurate unit statistical report (USR) data due to a widespread systemic failure or deficiency that resulted in the publication of numerous inaccurate experience modifications. The assessment is determined by:

  • The number of incorrect experience modifications issued based on USR corrections required to be submitted by the insurer;
  • The magnitude of the impact on experience modifications;
  • The nature and extent to which the accuracy of other reported data was affected;
  • Whether the insurer voluntarily identified the systemic deficiency or the deficiency was reported after the WCIRB initiated an inquiry; and
  • How quickly the systemic deficiency was resolved and the inaccurate submissions corrected.

If the insurer fails to address or correct the deficiency within a reasonable period of time, the matter may be escalated to the WCIRB Governing Committee for further remedial action.

The WCIRB Governing Committee approved revisions to the current program effective August 2015 to clarify that the pure premium basis for assessments is the most recent written modified pure premium, submitted on WCIRB quarterly data calls, that has been certified by an insurer company officer or accredited actuary pursuant to the WCIRB Financial Call Data Certification at the time the issue was deemed significant enough to warrant remediation and assessment. In this way, the fine or assessment more appropriately corresponds to the impact of the issue to overall WCIRB data quality than a future pure premium level that may be very different.