Scopes Basic Manual Classifications
The Scopes manual is a catalog of four-digit workers compensation codes based on the nature of business and estimated risk to its workers. The manual is compiled by a for-profit organization called the National Council on Compensation Insurance (NCCI) that produces information and policy for legislation and rates for workers compensation insurance.
Other People Are Reading
-
Scopes
-
Each code refers to a group of employers or businesses that are placed together in an insurance grouping. Included in the Scopes manual is a description of each business or organizational grouping, according to the Workers Compensation Shop. The Scopes manual is used by state and local insurance authorities, workers compensation insurance companies and organizations.
Basic Classification
-
A basic Scopes manual classification is a four-digit code for an organizational grouping based on statistical evidence compiled by the NCCI to assess the risk of employees being exposed to hazards. An organization or employer is assigned a Scopes manual code from which insurance agents and underwriters determine the rate of premiums organizations will pay for workers compensation insurance. The Scopes manual attempts to determine the hazards for different types of industries in order to provide each organization with the correct level of insurance coverage and appropriate insurance premiums.
-
NCCI
-
The National Council on Compensation Insurance is a for-profit organization funded in large part by members of the insurance industry. NCCI is responsible for writing and publishing the Scopes manual. The NCCI is based in Boca Raton, Fla., and is responsible for analyzing the work of insurance companies and workers compensation claims made through the insurance industry. The NCCI also analyzes trends in the insurance industry and estimates the cost of governmental policies to the insurance industry.
Codes
-
Each employer covered by a Scopes manual basic classification grouping is covered by a four-digit number. For example at the time of publication, code 8810 covers clerical risk exposure and 5645 is assigned to general residential construction hazard exposure. Not every state in the U.S. allows its workers compensation insurance to be determined by the Scopes manual. The state of Texas uses Scopes but incorporates its own classification procedures. States that do not use Scopes at the time of publication include California, New jersey, New York, Delaware and Pennsylvania.
-
References
- Photo Credit Jupiterimages/Photos.com/Getty Images
