Inspection Criteria

Criteria and requirements for inspections

The Indiana Compensation Rating Bureau is responsible for the propriety of classification assignments and applicability of all Basic Manual rules. It has the right to conduct inspections of operations, assign classifications, and determine the propriety of classification assignments made by insurance carriers.​

The Experience Rating Plan Manual Rule 1-B outlines the Experience Rating Plan and the authority of the ICRB to examine and audit all records:

B. Mandatory Plan

  1. The Experience Rating Plan Manual for Workers Compensation and Employers Liability Insurance (the Plan) applies on a mandatory basis for risks that meet the premium eligibility requirements in Rule 2-A. ​A policy cannot be cancelled, rewritten or extended for purposes of enabling a risk to qualify for, or avoid application of, this Plan.
  2. Any action taken in any form to evade the application of an experience rating modification determined in accordance with this Plan is prohibited.
  3. The effective date of a change in any rule or rating value is 12:01 a.m. on the date approved for use. Unless otherwise specified, each change applies only from the rating effective date, which occurs on or after the effective date of the change. Refer to Rule 2-B for more information about rating effective dates.
  4. The Workers Compensation and Employers Liability Insurance Policy provides the rating organization with the authority to examine and audit all records that relate to the policy. The application of this Plan’s rules may be affected by the attachment of endorsements found in the Forms Manual of Workers Compensation and Employers Liability Insurance.
  5. The rules of this Plan are based on policy periods not longer than one year.
    1. A policy issued for a period not longer than one year and 16 days is treated as a one-year policy.
    2. A policy issued for a period longer than one year and 16 days is treated as follows:
      1. The policy period is divided into consecutive 12-month units.
      2. The Policy Period Endorsement specifies the first or last unit of less than 12 months as a short-term policy.
      3. All manual rules and procedures apply to each such unit as if a separate policy had been issued for each unit.​

Additional physical audit and inspection for Assigned Risk can be located in the NCCI’s Performance Standards for Servicing Carriers- Standard 6- Audits. Here is the link to the NCCI Manu​al L​ibrary