What it does
WC 00 04 21 is notice that the insurer charges premium to cover losses from a Catastrophe (Other Than Certified Acts of Terrorism). The policy already covers those losses; the endorsement discloses the charge, which is shown in Item 4 of the Information Page or in the endorsement's Schedule by state, rate and premium. The charge does not fund certified terrorism losses, which are addressed by WC 00 04 22.
Change in the current edition
- WC 00 04 21 E (Ed. 1-21) defined a catastrophe as a single event resulting from an earthquake, a noncertified act of terrorism or a catastrophic industrial accident, with aggregate losses over $50 million.
- WC 00 04 21 F (Ed. 8-21), from NCCI Item P-1418, defines it as a single event or peril resulting in a group of claims with aggregate workers compensation losses of $50 million, applied per occurrence across all states. North Carolina's bureau explained the change as capturing events such as the COVID-19 pandemic. North Carolina applied it to policies effective on or after August 1, 2022; Texas adopted the catastrophe provision and version F through NCCI Item 02-TX-2021.
New York's manual carries its own reprint of WC 00 04 21 E with the earlier, peril-specific definition.
Who needs it
All policyholders where the carrier applies the charge. In Texas, a carrier must file its catastrophe rate with the Texas Department of Insurance before applying the premium.
Quoting and selling notes
- The charge appears in Item 4 or in the endorsement's Schedule as a rate and premium by state, so it changes with audited payroll.
- Under retrospective rating, premium developed by the catastrophe provisions is excluded from standard premium and losses from catastrophe provisions are left out of retro incurred losses.
Related forms
Terrorism disclosure WC 00 04 22; TRIPRA expiration notice WC 00 01 16.
