Under Iowa law, what constitutes the basis for determining Workers Compensation rates?

In Iowa, the determination of Workers Compensation rates is based primarily on the job classification's loss exposure. This means that rates are calculated by assessing the risks associated with specific job categories. Each classification reflects the types of injuries that are most likely to occur within that job sector, allowing for a more accurate pricing model for insurance coverage.

Workers engaging in more hazardous occupations generally present a higher risk of workplace injuries, which is reflected in higher insurance premiums. Conversely, jobs with lower risk profiles result in lower premiums. This system promotes fairness in premium assessment, ensuring that employers are charged in accordance with the actual risk associated with their employees’ work environments.

While factors like job title or an employee's work history may provide context, they do not directly determine the insurance rates. Similarly, annual company profit does not influence Workers Compensation rates because the rates are primarily linked to the risk presented by the job classifications. Therefore, the job classification's loss exposure serves as the most accurate and relevant basis for calculating Workers Compensation rates in Iowa.