How VCAP® Service Works

Posted Date: Current

VCAP^®Service

RMAPS^®Online Application Service

Voluntary coverage providers participating as VCAP^®Service users must meet the following eligibility requirements:
- Election in the WCIP as a participant in the National Workers Compensation Reinsurance Pool or as a Residual Market Direct Assignment Carrier
- Licensed to write workers compensation insurance in the approved jurisdiction(s)
- Have an A.M. Best Financial Strength Rating (FSR) minimum of B+

The voluntary coverage providers set up their own criteria, which includes:

Contact information	Governing class code
Governing state	Experience modification
Business type	Estimated annual premium
Banking information (for deposit premium transfer)	Zip code

All applications (electronic, mail-in and phone-in) are directed through NCCI’s RMAPS^®Online Application Service and reviewed to see if they meet a voluntary coverage provider’s criteria Coverage providers and producers receive a real-time electronic notification that the applicant meets a voluntary coverage provider’s criteria
If multiple coverage providers’ criteria are met, the application information is sent to all
Coverage providers have three business days to review and determine whether they want to make an offer of voluntary coverage
The producer and voluntary coverage provider work together to negotiate a “reasonable offer of voluntary coverage”
The first coverage provider to receive acceptance of a confirmed offer from the producer issues the policy
The producer must accept on behalf of the employer any “reasonable offer of voluntary coverage” made by a voluntary coverage provider through VCAP^®Service
The producer may reject an offer of voluntary coverage if:
- The offer is greater than the assigned risk premium
- The carrier’s A.M. Best financial rating is less than B+
- The offer does not meet the coverage requirements of the employer
- A large deductible/deposit that is a financial burden to the employer is required
The voluntary coverage provider confirms the voluntary offer online and the application does not proceed through the RMAPS^®Online Application Service process
If an offer of voluntary coverage is not extended, the assigned risk application continues through RMAPS^®Online Application Service, subject to all Workers Compensation Insurance Plan eligibility requirements
A residual market WCIP filing to introduce VCAP^®Service will be developed by NCCI and filed with state regulators at the conclusion of the pilot project