The MS Workers' Compensation A/R Plan
Prior to 1993, Mississippi utilized an assigned risk plan administered by the National Council on Compensation Insurance (NCCI). An organization known as the National Reinsurance Pool served as the reinsurance mechanism for the NCCI plan. Substantially all decisions and policy making authority regarding the operation of the plan resided with the Board of Governors of the National Pool.
In designing the Mississippi Plan, the Commissioner's staff relied heavily on the foundation built by NCCI and the structure of the Mississippi Plan is similar in many respects to the plan in effect prior to 1993. There are, however, major differences. The diagram below illustrates the organization of the Mississippi Plan and the relationship and major responsibilities of the various parties involved in its operation. As this diagram clearly portrays, the Commissioner is the ultimate authority for all aspects of Plan and Pool administration. Likewise, servicing carriers, while responsible to both the Plan and Pool administrators, are directly accountable to the Commissioner for their performance.
The Plan Manager is primarily responsible for the application/assignment process; determining employer eligibility to participate in the Plan and making assignments to servicing carriers.
The Pool Administrator is responsible for receiving and investing funds collected by servicing carriers and collects and reports financial information to Pool members. The Pool Administrator is also responsible for determining each Pool member's prorata share of voluntary premium and the amount and timing of assessments or distributions resulting from Plan operations.
Servicing carriers provide the link between the employer/participants in the Plan and the member companies which make up the Pool. Under the Mississippi Plan, servicing carriers are required to maintain a fully staffed office within the state and must commit to work with the Commissioner's office in promoting safety and loss control among policyholders, especially smaller employers who aren't traditionally provided such services. Servicing carriers are also expected to aggressively participate in the depopulation of the Plan by writing business on a voluntary basis.
