PAAS Connect Course Descriptions

Workers' Compensation

Policy Review
A review of:

  • parts of the workers' compensation policy
  • workers' compensation laws
  • types of workers' compensation laws
  • insurance requirements

Classification Terminology
A review of the definitions and proper application of:

  • basic classifications
  • standard exception classifications
  • general inclusion operations
  • general exclusion operations
  • governing classification
  • principal business rule
  • classification wording and applications

Classification Assignment
The basic concepts required to classify a risk, including:

  • object of the classification system
  • classifying separate legal entities
  • business not described by a manual classification
  • classes limited to separate businesses
  • business described by a standard exception classification
  • construction or erection risks
  • subcontractors
  • farm operations
  • repair operations
  • recycling operations
  • miscellaneous employees rule
  • interchange of labor rules
  • changes or corrections in classifications rule

Basis of Premium
An in-depth analysis of:

  • payroll inclusions and exclusions
  • bonuses
  • commissions
  • substitutions for money
  • housing
  • rental value of housing or apartment
  • payroll limitation – officers, sole proprietors, and others
  • overtime wages

Executive Officers
An examination of the manual rules to determine:

  • who qualifies as an executive officer
  • officers’ remuneration determination for premium calculation
  • proper classification of each officer
  • executive officers of multiple entities

Sole Proprietorship/Partnership/Others
Issues concerning sole proprietors, partners, and others, including:

  • coverage status
  • payroll determination
  • classification procedures
  • treatment of nonsalaried employees and domestic workers

Issues surrounding the use of subcontractors, including a review of:

  • certificates of insurance
  • basis of premium
  • exposure determination
  • classification procedures for insured and uninsured subcontractors

Issues surrounding maritime and the effect on business operations performed on or near navigable waterways of the United States, with explanations of:

  • Jones Act (Admiralty)
  • USL&HW Act
  • FELA (Federal Employers Liability Act – Interstate Railroads)

Rating Factors
Guidance on application of:

  • loss constants
  • expense constants
  • anniversary rating date calculations
  • extraterritorial operations

General Liability

Policy Review
An overview of:

  • the types of liability insurance
  • standard and nonstandard forms
  • contents of the Commercial Package Policy
  • coverages and endorsements in the Commercial General Liability Policy
  • the ISO Commercial Lines Manual

Basis of Premium
An analysis of the various types of rating bases:

  • admissions
  • area
  • each
  • gross sales
  • payroll
  • total cost
  • units

with information on inclusions and exclusions.

Classification Procedures
The general concepts of ISO’s CLM Rules 25 and 26:

  • classification assignment
  • general inclusions and exclusions

Manufacturing/Processing and Mercantile Risks
An examination of the procedures for classifying risks under ISO’s CLM Rules 27 (manufacturing/processing) and 29 (mercantile):

  • definition of named insureds
  • classifying by final product
  • multiple operations
  • special inclusions and exclusions
  • basis of premium
  • wholesale value
  • classification assignment procedures
  • definition of dealer/distributor and rating territory

Contracting and Servicing Risks
An analysis of ISO’s CLM Rule 28 (contracting and servicing risks):

  • classification assignment
  • special classification exclusions
  • basis of premium
  • rating territory
  • contractor – subcontracted operation classifications
  • assignment procedures for adequately and inadequately insured subcontractors

Building/Premises and Miscellaneous Risks
The rating components outlined in ISO’s CLM Rules 31 (buildings/premises) and 32 (miscellaneous) used to classify a risk rated on a unit or area basis:

  • rules
  • classification procedures
  • basis of premium

Commercial Automobile

Automobile Dealerships/Garage Liability
Guidance with the classifications and rating basis for risks involved in the operation of automobile dealerships and garage liability, including a review of:

  • classifications
  • audit procedures and verification
  • premium development
  • miscellaneous rating issues

Technical Topics

Companion Codes
Assigning a classification to a risk may take more than one classification; thus, there is a need for companion classifications. One example of companion classifications is assigning codes for both “professional employees” and “all other employees” for one particular risk. We’ll review:

  • reasons for companion classifications
  • which risks require companion classifications
  • what distinguishes professional from nonprofessional employees

Auditing Legal Entities
An in-depth discussion of the various legal entities and their effect on policy premium:

  • sole proprietorships
  • partnerships
  • corporations
  • limited liability companies (LLC and LLP)
  • unincorporated associations

Classifying Across State Lines
When a risk performs the same operation in more than one state, the assigned classifications may differ. That depends on state exceptions as well as the regulating insurance bureau. We’ll review:

  • installation of solar panels on the roof of a structure
  • drilling operations for geothermal heating and cooling systems
  • drives as a general inclusion operation
  • interchange of labor
  • classifying mechanics of a trucking company

Aviation Risks
The definition of an aviation risk is any risk that operates an aircraft, whether fixed wing, helicopter, or hot air balloon. That includes commercial airlines transporting passengers or cargo between airports, private aircraft for hire (such as for sightseeing or aerial advertising), and aircraft operated for the owner's business use (crop dusting, transporting customers or company personnel). We’ll review:

  • applicable classifications
  • when to use which classifications
  • who is covered and when a premium is charged

Contractor Executive Supervisor – 5606/91580
A discussion of the proper use of code 5606, “Contractor – Project Manager, Construction Executive, Construction Manager, or Superintendent,” and related issues for workers' compensation and general liability

Building the Intelligent House
An examination of the workers' compensation and general liability classifications for manufacturers and installers of devices such as:

  • climate control systems
  • home entertainment systems that control stereos, televisions, computers, telephones, intercom systems, nanny cams, and lights
  • windows that change at night to prevent others from looking in
  • natural and mechanical ventilation — new on the market for green buildings
  • solar panels

Pitfalls of Cross-referencing Workers' Compensation and General Liability
An examination of the pitfalls of automatically cross-referencing various types of risks from workers' compensation to general liability classification assignment

2012/2013 NCCI Workers' Compensation Classification Changes
NCCI has been making significant changes to their classification system. These changes for 2012/2013 include:

  • Bakeries
  • Furniture and cabinet manufacturing
  • Motion picture production and film exchanges
  • Insurance companies - new classification
  • Carnivals and circuses
  • Drilling
  • Oil and gas

Soft Skills

Writing a Description of Operations
A review of the essential elements necessary to write a thorough description of operations:

  • techniques for before and after the interview
  • compiling the data
  • observing the obvious
  • policy guidelines by line of business
  • what and how much to write
  • audit documentation

Find out more

ISO’s Premium Audit Advisory Service (PAAS) developed PAAS Connect. Contact to schedule a consultation.