WITHDRAWAL OF APPROVAL OF THE NATIONAL COUNCIL ON COMPENSATION
INSURANCE SHORT RATE TABLE
The Director of the Division of Insurance does hereby find, as
1. Alaska Statute (AS) 21.36.255 states that if an insurance
policy is canceled by an insured, the insurer shall return any
unearned premium less a cancellation fee not to exceed 7.5 percent
of the unearned premium.
2. The short rate cancellation table issued April 1, 1984, on
page R-25 of the National Council on Compensation Insurance
Workers' Compensation and Employers Liability Insurance Basic
Manual, violates AS 21.36.255.
3. A letter dated August 3, 1994, was sent to the National Council
on Compensation Insurance (NCCI) requesting that the short rate
cancellation table be revised no later than January 1, 1995, to
comply with AS 21.36.255.
4. The National Council on Compensation Insurance did not correct
the short rate cancellation table as requested.
5. Under authority vested by AS 21.39.050(c), a hearing was scheduled
for February 22, 1995, to withdraw approval of the NCCI short
rate cancellation table.
6. On February 21, 1995, the Division of Insurance received a
filing from NCCI withdrawing the short rate cancellation table
Because NCCI has withdrawn its short rate cancellation table, all
workers' compensation policies which are canceled by an insured
shall have the return premium computed pro rata. A cancellation
fee may be charged only if the NCCI or the insurer submits and obtains
approval of a cancellation provision which complies with AS 21.36.255.
This order takes effect March 1, 1995.
Date: February 27, 1995, at Juneau, Alaska.