Pennsylvania Compensation Rating Bureau · 2016. 9. 20. · Pennsylvania Compensation Rating Bureau Comparison of Workers’ Compensation Rates Effective April 1, ... Discussion of

Pennsylvania Compensation Rating Bureau

Comparison of Workers’ Compensation Rates

Effective April 1, 2015

Seven Selected Northeastern States

Delaware

Maryland

New Jersey

New York

Ohio

Pennsylvania

West Virginia

February 17, 2016

Pennsylvania Compensation Rating Bureau

Comparison of Rates: Pennsylvania to Other Northeast States

Pennsylvania Rating Values Effective April 1, 2015 This report updates similar analyses previously prepared by the Pennsylvania Compensation Rating Bureau (PCRB). For Pennsylvania in particular, this analysis includes recognition of the continuing impacts of Act 44 enacted in July 1993 and Act 57 enacted in June 1996. For all jurisdictions included in the comparison, classification changes and/or revisions to rating values occurring through July 1, 2015 are reflected herein. Discussion of workers compensation systems often includes claims or assertions regarding the relative premium costs for this line of insurance in various state jurisdictions. The PCRB is mindful that true premium costs for workers compensation insurance in different states are the result of many variables not generally susceptible to simple or generalized analysis. Especially important variables of this type include differences in classification plans approved in different states and competitive pricing differentials applied by insurance carriers in each jurisdiction. In the interest of informing various parties currently engaged in discussions concerning the Pennsylvania workers compensation system regarding comparative system costs, the PCRB has compared approved rates in several selected northeastern states to those of Pennsylvania using an approach which recognizes both of these notable variables. The results of that comparison are presented and discussed in this report. OVERVIEW OF STUDY RESULTS • Pennsylvania’s lowest approved rates for the classifications studied tended to be lower than

the lowest approved rates for Delaware, New Jersey, New York and Ohio (except for manufacturing and contracting classifications) and higher than the lowest approved rates of Maryland, Ohio (except “other” classifications) and West Virginia. Pennsylvania’s highest approved rates for the classifications studied tended to be lower than the highest approved rates in the other states except for the manufacturing and contracting classifications in Ohio and West Virginia.

• In addition to the rating values shown in Exhibits 1 and 3, the final costs to policyholders may be significantly influenced by various assessments and/or surcharges that are applicable to premiums rather than rates. The following list shows additional costs that apply to premiums rather than rates for the states included in this study.

Pennsylvania – Employer assessment factor 1.64%

Delaware – None Maryland – Premium Tax 2.0%, Subsequent Injury Fund 6.5%, Uninsured Employers Fund 2.0% and Workers Compensation Commission Tax 0.02%

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeast States Rating Values Effective as of April 1, 2015 Page 2

New Jersey – Plan Premium Adjustment Program (assigned risk) minimum surcharge 17%, Second Injury Fund 6.07% and Uninsured Employers Fund 0.00%

New York – New York State Assessment 13.2%

Ohio – None Note: For Ohio, certain assessments and/or charges are included in the rating values shown in Exhibits 1 and 3. Specific charges and the manner of their application in Ohio is discussed later in this narrative.

West Virginia – Regulatory Surcharge 5.0%, Premium Tax 4.0% (waived while Deficit Reduction Surcharge is being charged) and Deficit Reduction Surcharge 9.0%

• This study was limited, by design, to a comparison of approved carrier rates in the selected

jurisdictions. Such rates exclude potential effects of a broad variety of special rating programs, which may be available in some jurisdictions. Thus, this study is directed at the benchmark tabular rates used by insurers as a starting point in determining final premiums but has not analyzed the complex series of possible additional steps which may actually apply in determining each insured’s policy premium. As examples of such additional factors, Pennsylvania employers may qualify for some or all of the following special pricing programs:

• Safety Committee credits premised upon qualification of safety committee activities in

the employer’s business

• Construction Classification Premium Adjustment Program credits which recognize effects of significant differences in wage levels between employers on workers compensation insurance premiums

• Group Insurance Programs which allow consolidation of experience for purposes of

loss-sensitive pricing programs filed by individual insurers

• Subclassifications adopted by individual insurers subject to different rating values than those produced by the combination of PCRB loss costs and the insurers’ loss cost multiplier(s)

• Retrospective rating plans which effectively rely on the insured’s own loss experience in

determining final insurance prices

• Deductible coverages which allow employers to reduce their workers compensation insurance premiums in return for accepting responsibility for initial payments on claims which may occur for their employees

• Schedule rating plan adjustments, including use of either a PCRB plan filed on behalf of

all its members or of carrier-specific plans

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeast States Rating Values Effective as of April 1, 2015 Page 3 • Each jurisdiction studied showed substantial ranges of approved rates within many given

Pennsylvania classifications. These ranges of approved rates are attributable in part to differences in carrier pricing initiatives and values, such as deviations or loss cost multipliers, and/or to differences in the structure of approved classifications which cause parts of multiple different classifications in some states to be equivalent to parts of a single common classification in Pennsylvania. Competitive differences in carrier pricing programs are applicable in deriving comparisons of Pennsylvania rates to those of Delaware, Maryland and New York, and, in fact, produce very significant ranges of carrier rates even within Pennsylvania itself for any given classification. Differences in classification plans apply in the comparisons with all states, although the State of Delaware uses a classification system which was identical to that of Pennsylvania for 30 of the 32 classifications included in this study.

• While rate comparisons often include statements to the effect that “state X” rates are

“blank” percent higher (or lower) than those of “state Y,” this study did not produce single factors for comparison of rates between states. Actually deriving such point estimates would require a significant amount of detail not generally available for analysis. To accurately establish rate differences in this fashion would require separate exposure data within a state consistent with the approved classification plan(s) of any other state(s) being included for comparison and separately reported for each carrier using different rate levels (i.e., rate deviations or loss cost multipliers). Without such detailed information, the proper weights cannot be determined for purposes of computing average rates in each state, and, without benefit of these appropriate weights, averages or other similar statistics taken from different states must be viewed with caution.

STRUCTURE OF THE STUDY Because the PCRB wanted to be able to comprehensively and correctly identify and account for differences in classification plans in this study, our analysis was limited to certain selected Pennsylvania classifications. In previous reports, the PCRB selected ten classifications from each of the three traditional “industry groups” commonly used in workers compensation pricing analysis: Manufacturing, Contracting and Other Industries. These selected classifications were large classifications as measured by “expected losses,” a statistic derived by multiplying recent exposures (generally payrolls) times the currently-approved PCRB loss cost values by classification. By request received early on during its initial study, the PCRB included two additional classifications, Sawmills and Logging, bringing the total number of classifications studied to 32. In preparing this updated comparison, the PCRB again reviewed the most current available data to determine the extent of any changes which may have occurred in the largest classifications within each industry group. The ten largest classifications in each industry group have again been selected, together with the Sawmill and Logging codes included in previous studies. Of the 30 “large” classifications used in the previous report, 28 remain among the largest ten classifications in their respective industry group.

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeast States Rating Values Effective as of April 1, 2015 Page 4 In order to compare Pennsylvania rates to any other jurisdiction(s), a cross-reference between the classification plans used in Pennsylvania and the comparison state(s) was needed. Development of such a cross-reference involved a thorough review of classification manuals in each other jurisdiction considered for comparison and required a significant effort by trained PCRB staff. Cross-references were developed for the following states: Delaware, Maryland, New Jersey, New York, Ohio and West Virginia, states having common borders with Pennsylvania. In Ohio, there are four employer assessments which apply in addition to published Ohio rates. A summary of these assessments follows: Disabled Workers’ Relief Fund: A flat $0.05 per $100 of payroll in addition to applicable premium rates for private employers, $0.06 per $100 of payroll for public employer taxing districts and $0.05 per $100 of payroll for public employer state agencies. Additional Disabled Workers’ Relief Fund: An additional 0.00 percent of base-rated premium for private employers, public employer taxing districts and public employer state agencies. Administrative Cost Assessment for the Bureau of Workers’ Compensation: Additional percentages of premium as follow:

12.79 percent of premium for private employers. 8.25 percent of premium for public employer taxing districts. 10.63 percent of premium for public employer state agencies.

Administrative Cost Assessment for the Industrial Commission: Additional percentages of premium as follow:

1.87 percent of premium for private employers. 2.09 percent of premium for public employer taxing districts. 3.12 percent of premium for public employer state agencies.

Administration Cost Assessment for the Workers’ Compensation Council: The percentages of premium for the Workers’ Compensation Council are currently set at 0.0 (zero) percent.

The Ohio rates used herein are computed as follow based on published classification rates:

Published Rate x (1 + 0.1279 + 0.0187 + 0.000) + $0.05 = (Published Rate * 1.1466) + $0.05

Exhibit 1 attached presents the ranges of approved rates by state in any classification(s), part or all of which correspond to the indicated Pennsylvania classifications studied. Where a state has more than one classification applicable to part(s) of a given Pennsylvania classification, all such classifications are listed in numerical order on successive lines of the exhibit within the Pennsylvania code of interest.

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeast States Rating Values Effective as of April 1, 2015 Page 5 While some comparisons can be made on a “one-for-one” basis, it can be readily seen that review of many classifications requires recognition of multiple classifications in other jurisdictions. In extreme cases (such as Pennsylvania Classification 445), other states (New York) may have a dozen or more classifications with some component(s) in common with a single Pennsylvania classification. In reviewing Exhibit 1, care must be taken to recognize the purpose and inherent limitations on the information as presented. Classifications shown for each state have been grouped within the pertinent Pennsylvania classifications. The classifications shown for states other than Pennsylvania have NOT necessarily been aligned to allow line-by-line comparisons of classifications and rates between those other states independent of Pennsylvania. For example, while Code 4484 is applicable to part of the Pennsylvania Code 222 in New Jersey and Code 4475 is applicable to part of Pennsylvania Code 222 in New York, Code 4484 in New Jersey is not identical to Code 4475 in New York. In addition, most of the states studied for most of the classifications included in the study (with exceptions as noted in Exhibit 2) allow separate classification and reporting of so-called “standard exception” activities such as clerical office and sales staff. Exhibit 2 attached provides general definitions of each code number presented on Exhibit 1 by state for purposes of clarification and understanding of the various elements of this study. Pennsylvania, Delaware, Maryland, New York and West Virginia all have workers compensation pricing laws which require insurance carriers to establish independent loss cost multipliers or other similar parameters in order to derive their own approved rate schedules. Thus, for each of these states a “low” and a “high” rate was derived in each classification. These rates reflect the extreme range of approved carrier rating values in each state as provided to the PCRB. While the PCRB cannot determine the extent to which carriers with these extreme values have written business in each of the classifications studied, the ranges shown do reflect the potential variation of prices in each jurisdiction owing to competitive factors. While there were nominal differences in the effective date(s) at which state-specific carrier rating values were provided for this report, all such dates were within the month of July 2015. The bases for the ranges as shown are set forth briefly following: Pennsylvania: Loss Cost Multipliers Approved Range from .900 to 2.8800 Approved Loss Costs Effective April 1, 2015 Delaware: Loss Cost Multipliers Approved Range from 1.000 to 2.433

Approved Loss Costs Effective December 1, 2014 Maryland: Loss Cost Multipliers Approved Range from 0.944 to 3.185.

Approved Loss Costs Effective January 1, 2015 New York: Loss Cost Multipliers Approved Range from 1.0230 to 1.916.

Approved Loss Costs Effective October 1, 2013 West Virginia: Loss Cost Multipliers Approved Range from 0.750 to 2.125.

Approved Loss Costs Effective November 1, 2014

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeast States Rating Values Effective as of April 1, 2015 Page 6 As of January 1, 2016, New Jersey does not allow carriers to deviate from the approved New Jersey Bureau rates in the voluntary market. In addition, workers compensation insurance in Ohio is provided by an exclusive state fund. Thus, in New Jersey and Ohio, there is no variation in price from carrier to carrier. Thus, the only variations in approved rates within a given Pennsylvania classification are due to differences in classification definitions. Exhibit 3 attached summarizes results from Exhibit 1 and shows the extreme range of prices approved in each state for types of businesses subject to each Pennsylvania classification included in this study. For the states of Pennsylvania and Delaware (having very similar classification plans), the ranges within a classification for a given state are predominantly the result of differences in competitive carrier pricing programs. For the remaining states as compared to Pennsylvania, these extremes include the effects of both competitive pricing and classification differences where applicable. For each grouping of classifications (manufacturing, contracting and other industries) and for all studied classifications combined, averages of the low and high rates have been computed using Pennsylvania payrolls as weights. The PCRB would emphasize that, while the weighting system used on Exhibit 3 provides a means of combining the various endpoints observed for approved rates falling within specified Pennsylvania classifications in other jurisdictions, the “average” values shown would NOT represent averages for those other states themselves. This difference is attributable to the matter previously discussed regarding proper exposure weights and the fact that the PCRB does not generally have other states’ exposure data separately for the parts of classifications pertinent to this study. INTERPRETATION OF STUDY RESULTS To the extent that prevailing differences in rates are discovered in a study such as this one, questions often arise as to why such differences persist. The PCRB would suggest that state-to-state differences arise between workers compensation insurance rates primarily because each jurisdiction separately establishes benefits and administrative procedures pertinent to this line of business, and each state’s workers compensation system must interact with different industrial, economic and social climates. In short, workers compensation insurance costs more where losses and insurer expenses are higher and less where losses and insurer expenses are lower. It is not generally the case that differences in insurance cost are attributable to differences in insurance carrier requirements for operating margins or profits. Further, each carrier is likely to have consistent objectives in managing and paying claims in various jurisdictions, subject to the specific constraints and requirements of each administrative system. In fact, many of the same insurance carriers actively write workers compensation business in more than one of the states subject to this study, and, subject to licensing requirements, all PCRB members, except for the State Workers’ Insurance Fund (SWIF), could write workers compensation insurance in any or all of the states studied, except for Ohio. It is beyond the scope of this study to definitively establish and/or quantify reasons for the observed differences in workers compensation rates between the jurisdictions addressed

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeast States Rating Values Effective as of April 1, 2015 Page 7 herein. In its previous rate comparison studies, however, the PCRB offered some general observations in order to illustrate the kinds of differences which may arise between different state workers compensation systems.

• The Pennsylvania maximum indemnity benefit is set at 100 percent of the Statewide Average Weekly Wage (SAWW). Other states’ maximum benefit may be set at another level of SAWW or a set dollar amount. In addition, the SAWW can vary widely from state to state so that states with the same benefit percentage may have significantly different benefit amounts.

• Pennsylvania has a medical fee schedule initially based on a selected premium to

Medicare reimbursement rates and then subject to annual cost of living increases based on changes in the SAWW. Other states may not have fee schedules in place, or such schedules applied in other states may be based on reimbursement rates that differ significantly from those in place in Pennsylvania.

• Pennsylvania allows the use of the AMA Guide to the Evaluation of Permanent

Impairment in the evaluation of permanent disability. Other states may not use this guide.

• Pennsylvania allows offsets for unemployment benefits, Social Security old age benefits

and employer funded pension benefits. Other states may not allow for benefit offsets or may allow them at different levels than Pennsylvania.

• Pennsylvania employees select from an employer/insurer list of providers during the first

90 days of treatment. Practices in this regard vary greatly by state, with some allowing employee choice of physician for the life of the claim or for a certain amount of time after the injury.

• Pennsylvania provides no scheduled or pre-funded cost-of-living adjustment for

indemnity benefits. Some states do provide such adjustments for certain types of injuries. Note: The Pennsylvania legislature has, on occasion, increased benefits on older claims of certain types. These increases are not funded by the insurance industry and are not considered “cost-of-living adjustments” for purposes of this study.

• Pennsylvania medical providers may not bill workers for any amounts not covered by the

insurer or employer. In some states, medical providers can “balance bill” workers for amounts not paid by insurers.

• Pennsylvania has no time and/or dollar maximum for death benefits, its temporary total

disability benefits are payable for the duration of the disability and permanent partial benefits are limited to 500 weeks. Other states may have different maximum payment levels and/or duration of payments for these types of benefits.

The above observations identify provisions of the Pennsylvania Workers Compensation system and offer alternative provisions that directly influence the cost of insurance in other states and any comparison to Pennsylvania costs. The points noted may produce either lower or higher

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeast States Rating Values Effective as of April 1, 2015 Page 8 insurance costs and, therefore, lower or higher insurance rates in a jurisdiction than in Pennsylvania. It must be recognized that many system differences (indeed a great majority of such differences which exist) are omitted entirely from these brief illustrative references. Finally, significant system differences are often manifest in controlling judicial decisions and administrative procedures.

Exhibit 1

OHPA 4/15 DE 12/14 MD 1/15 NJ Range of NY 10/13 NCCI Range of WV Approved

Class PA Loss Class Loss Class Loss Class NJ Rates Class Loss Class OH Rates Class WV Loss CostCode Description Cost Low High Code Cost Low High Code Cost Low High Code 1/1/15 Code Cost Low High Code 7/1/2015 Code 11/1/2014 Low High

Group I: Eleven (11) Manufacturing Classifications

104 Food Sundries Mfg, NOC 2.87 2.58 8.27 104 4.59 4.59 11.17 4717 2.31 2.18 7.36 2150 10.95 2150 9.38 9.60 17.97 4717 3.27 4717 1.51 1.13 3.21 4825 0.71 0.67 2.26 4627 4.20 4628 1.7 1.74 3.26 4825 1.29 4825 0.57 0.43 1.21 6504 2.08 1.96 6.62 4628 2.20 4825 1.16 1.19 2.22 6504 2.95 6504 2.25 1.69 4.78 8102 1.76 1.66 5.61 6504 5.36 6504 6.39 6.54 12.24 8102 1.04 8102 1.25 0.94 2.66

8102 3.97 8102 6.14 6.28 11.76

105 Bakery, Wholesale 2.79 2.51 8.04 105 4.27 4.27 10.39 2002 2.29 2.16 7.29 2002 8.07 2001 7.27 7.44 13.93 2002 6.36 2002 1.76 1.32 3.74 2003 4.45 4.20 14.17 2003 10.20 2002 6.20 6.34 11.88 2003 3.65 2003 2.37 1.78 5.04

2003 6.64 6.79 12.72

112 Beverage Mfg. 8.80 7.92 25.34 112 12.80 12.80 31.14 2157 3.88 3.66 12.36 2157 (A) Rated 2157 11.36 11.62 21.77 2157 4.95 2157 4.84 3.63 10.29

222 Plastic Articles Mfg, NOC 2.32 2.09 6.68 222 4.77 4.77 11.61 4431 1.34 1.26 4.27 4431 12.55 4431 4.70 4.81 9.01 4431 2.71 4431 0.98 0.74 2.08 4452 2.51 2.37 7.99 4452 6.70 4452 4.45 4.55 8.53 4452 3.24 4452 1.87 1.40 3.97 4459 3.71 3.50 11.82 4459 7.63 4459 4.73 4.84 9.06 4459 2.69 4459 1.43 1.07 3.04 4470 1.57 1.48 5.00 4470 4.66 4470 3.48 3.56 6.67 4470 1.22 4470 1.57 1.18 3.34 4484 1.71 1.61 5.45 4484 5.12 4475 4.21 4.31 8.07 4484 3.47 4484 1.31 0.98 2.78

4476 3.05 3.12 5.84

281 Printing, N.O.C. 1.86 1.67 5.36 281 2.89 2.89 7.03 2501 2.02 1.91 6.43 0700 4.10 2553 2.42 2.48 4.64 2501 3.46 2501 1.34 1.01 2.85 4282 2.24 2.11 7.13 4282 3.20 4282 0.66 0.68 1.26 4282 3.27 4282 1.40 1.05 2.98 4299 1.90 1.79 6.05 4299 3.90 4299 3.35 3.43 6.42 4299 1.95 4299 1.33 1.00 2.83 4307 1.73 1.63 5.51 4307 3.25 4307 3.11 3.18 5.96 4307 1.00 4307 1.13 0.85 2.40 4351 0.90 0.85 2.87 4351 3.50 4351 1.79 1.83 3.43 4351 0.84 4351 0.65 0.49 1.38 4352 1.84 1.74 5.86 4352 3.50 4352 0.82 0.84 1.57 4352 1.15 4352 0.90 0.68 1.91

4361 1.01 1.03 1.94

282 Newspaper Publishing 5.63 5.07 16.21 282 7.46 7.46 18.15 4299 1.90 1.79 6.05 4299 3.90 4299 3.35 3.43 6.42 4299 1.95 4299 1.33 1.00 2.83 4304 3.13 2.95 9.97 4313 5.40 4304 6.35 6.50 12.17 4304 4.29 4304 2.44 1.83 5.19

301 Sawmill 4.90 4.41 14.11 301 7.14 7.14 17.37 2710 7.64 7.21 24.33 2710 23.14 2710 8.02 8.20 15.37 2710 6.59 2710 5.99 4.49 12.73

445 Hardware Mfg 2.52 2.27 7.26 445 4.63 4.63 11.26 3041 7.01 6.62 22.33 3041 5.08 3041 5.48 5.61 10.50 3041 7.24 3041 3.12 2.34 6.63 0067 OD Supplemental for 445 0.09 0.08 0.26 3132 3.01 2.84 9.59 3113 2.76 3129 5.67 5.80 10.86 3132 3.75 3132 1.74 1.31 3.70

3145 2.48 2.34 7.90 3132 5.91 3132 3.31 3.39 6.34 3145 2.32 3145 1.65 1.24 3.51 3146 2.44 2.30 7.77 3145 2.97 3145 2.85 2.92 5.46 3146 2.70 3146 1.47 1.10 3.12 3180 2.67 2.52 8.50 3146 5.43 3146 3.56 3.64 6.82 3180 4.01 3180 1.56 1.17 3.32 3188 1.44 1.36 4.59 3188 9.69 3188 5.63 5.76 10.79 3188 2.63 3188 1.14 0.86 2.42 3223 2.57 2.43 8.19 3192 3.13 3190 2.93 3.00 5.61 3223 3.27 3223 2.19 1.64 4.65 3574 0.87 0.82 2.77 3193 5.68 3191 3.09 3.16 5.92 3574 2.92 3581 0.83 0.62 1.76 3581 1.06 1.00 3.38 3581 2.09 3200 3.41 3.49 6.53 3581 1.13 3574 1.09 0.82 2.32 3634 1.45 1.37 4.62 3634 2.57 3336 2.57 2.63 4.92 3634 1.51 3634 1.37 1.03 2.91 9501 2.32 2.19 7.39 9501 3.87 3581 2.11 2.16 4.04 9501 2.71 9501 2.25 1.69 4.78

3634 3.41 3.49 6.53 9501 2.56 2.62 4.90

454 Sheet Metal Products 2.56 2.30 7.37 454 7.48 7.48 18.20 3064 5.46 5.15 17.39 3045 13.15 3064 8.26 8.45 15.83 3064 5.14 3064 2.57 1.93 5.46 3076 2.52 2.38 8.03 3066 8.56 3066 3.93 4.02 7.53 3076 4.38 3076 2.24 1.68 4.76 3220 1.78 1.68 5.67 3075 8.56 3067 7.25 7.42 13.89 3220 2.91 3220 0.91 0.68 1.93 3224 3.12 2.95 9.94 3076 7.40 3076 5.37 5.49 10.29 3224 4.32 3224 1.72 1.29 3.66 3227 2.44 2.30 7.77 3220 4.82 3220 4.79 4.90 9.18 3227 9.98 3227 1.70 1.28 3.61 3400 2.86 2.70 9.11 3227 6.05 3227 39.85 40.77 76.35 3400 4.06 3400 2.11 1.58 4.48 3803 2.47 2.33 7.87 3400 6.52 3381 3.39 3.47 6.50 3803 5.03 3803 1.84 1.38 3.91 3807 1.95 1.84 6.21 3400 8.59 8.79 16.46 3807 32.42 3807 1.41 1.06 3.00

3515 3.60 3.68 6.90 3807 4.66 4.77 8.93 3832 3.29 3.37 6.30

Range of WV Rates as of 11/1/14

Pennsylvania Compensation Rating Bureau Rating Value Comparison - 32 Selected Pennsylvania Classifications

Range of MD Rates as of 1/1/15

Range of NY Rates as of 10/1/13

Range of PA Rates as of 4/1/15

Range of DE Rates as of 12/1/14

Exhibit 1









Group I: Eleven (11) Manufacturing Classifications (cont.)

461 Machine Shop 2.12 1.91 6.11 461 4.53 4.53 11.02 3507 3.00 2.83 9.56 3507 7.14 3507 3.69 3.77 7.07 3507 2.39 3507 2.72 2.04 5.78 3515 1.55 1.46 4.94 3548 6.19 3515 3.60 3.68 6.90 3515 3.27 3515 1.32 0.99 2.81 3548 1.44 1.36 4.59 3612 8.23 3548 3.28 3.36 6.28 3548 0.90 3548 1.07 0.80 2.27 3559 2.33 2.20 7.42 3632 5.08 3559 2.38 2.43 4.56 3559 1.49 3559 2.33 1.75 4.95 3612 1.58 1.49 5.03 3635 4.85 3612 3.74 3.83 7.17 3612 2.33 3612 2.15 1.61 4.57 3632 2.44 2.30 7.77 3826 10.55 3632 4.40 4.50 8.43 3632 2.26 3632 2.28 1.71 4.85 3635 2.14 2.02 6.82 3635 2.95 3.02 5.65 3635 2.95 3635 1.64 1.23 3.49 3826 1.22 1.15 3.89 3826 2.76 2.82 5.29 3826 1.47 3826 0.47 0.35 1.00 3827 1.86 1.76 5.92 3827 7.25 7.42 13.89 3827 1.27 3827 1.41 1.06 3.00

759 Cable Operations 5.08 4.57 14.63 759 4.91 4.91 11.95 6325 5.46 5.15 17.39 6325 8.41 6325 8.95 9.16 17.15 6325 6.59 6325 4.60 3.45 9.78 7600 3.43 3.24 10.92 7536 12.73 7536 8.23 8.42 15.77 7600 4.73 7600 1.93 1.45 4.10

7600 9.28 7600 5.54 5.67 10.61 7601 8.71 7601 9.31 9.52 17.84

Group II: Ten (10) Construction Classifications

606 Oil or Gas Well Drilling 7.19 6.47 20.71 6235 6.45 6.09 20.54 6235 8.73 6235 8.34 8.53 15.98 6235 5.55 6235 8.59 6.44 18.25

607 Drilling, N.O.C. 4.80 4.32 13.82 607 8.49 8.49 20.66 1322 8.35 7.88 26.59 6204 14.77 6204 12.93 13.23 24.77 1322 9.10 1322 4.92 3.69 10.46 6204 10.57 9.98 33.67 6204 6.55 6204 5.44 4.08 11.56 6206 3.61 3.41 11.50 6206 3.48 6206 2.54 1.91 5.40 6213 2.21 2.09 7.04 6213 4.19 6213 1.84 1.38 3.91 6214 2.90 2.74 9.24 6214 12.15 6214 2.50 1.88 5.31 6236 10.43 9.85 33.22 6236 21.30 6236 5.70 4.28 12.11 6237 1.67 1.58 5.32 6237 1.38 6237 1.06 0.80 2.25

608 Flat Cement Work 5.26 4.73 15.15 608 6.57 6.57 15.98 5215 5.01 4.73 15.96 5200 12.81 5213 16.83 17.22 32.25 5213 5.66 5215 3.35 2.51 7.12 5221 4.36 4.12 13.89 5213 17.70 5221 11.72 11.99 22.46 5215 8.33 5221 2.24 1.68 4.76 6204 10.57 9.98 33.67 5215 14.30 6204 12.93 13.23 24.77 5221 5.51 6204 5.44 4.08 11.56

6204 7.56

609 Excavation 3.76 3.38 10.83 609 5.76 5.76 14.01 5703 16.62 15.69 52.93 1605 10.73 5703 15.77 16.13 30.22 5703 15.33 5703 9.07 6.80 19.27 6018 2.70 2.55 8.60 5703 28.43 6018 14.95 15.29 28.64 6018 4.83 6018 1.79 1.34 3.80 6045 3.15 2.97 10.03 6039 11.27 6045 3.82 3.91 7.32 6045 4.83 6045 2.43 1.82 5.16 6217 4.79 4.52 15.26 6217 10.73 6217 8.15 8.34 15.62 6217 4.11 6217 3.31 2.48 7.03 6229 3.50 3.30 11.15 6233 9.26 6229 6.11 6.25 11.71 6229 3.67 6229 2.69 2.02 5.72 6233 6.26 5.91 19.94 6233 6.36 6.51 12.19 6233 4.46 6233 2.45 1.84 5.21

651 Carpentry 5.98 5.38 17.22 643 13.14 13.14 31.97 5102 6.02 5.68 19.17 5103 14.34 5102 12.81 13.10 24.54 5102 7.12 5102 3.90 2.93 8.29 651 7.14 7.14 17.37 5402 3.91 3.69 12.45 5402 19.85 5402 10.57 10.81 20.25 5402 9.91 5402 2.62 1.97 5.57

5403 5.86 5.53 18.66 5403 20.33 5403 12.11 12.39 23.20 5403 5.48 5403 4.80 3.60 10.20 5473 19.22 18.14 61.22 5701 20.66 5473 26.71 27.32 51.18 5473 5.06 5473 4.26 3.20 9.05

652 Carpentry - Residential 7.59 6.83 21.86 652 9.10 9.10 22.14 5102 6.02 5.68 19.17 5645 20.33 5102 12.81 13.10 24.54 5102 7.12 5102 3.90 2.93 8.29 5645 8.32 7.85 26.50 5645 11.36 11.62 21.77 5645 8.14 5645 9.06 6.80 19.25

5651 7.10 7.26 13.60

661 Electrical Wiring - 2.92 2.63 8.41 661 3.17 3.17 7.71 5190 3.20 3.02 10.19 5190 5.91 5190 6.08 6.22 11.65 5190 3.01 5190 1.59 1.19 3.38 Within Buildings

663 Plumbing 3.49 3.14 10.05 643 13.14 13.14 31.97 5183 4.56 4.30 14.52 5183 7.97 5183 7.42 7.59 14.22 5183 2.87 5183 1.38 1.04 2.93 663 4.63 4.63 11.26 5188 4.66 4.40 14.84 5184 4.32 5184 8.07 8.26 15.46 5188 2.65 5188 1.76 1.32 3.74

5472 5.11 4.82 16.28 5188 5.84 5188 5.21 5.33 9.98 5472 10.87 5472 2.75 2.06 5.84

664 Heating, Ventilating or 3.33 3.00 9.59 664 5.36 5.36 13.04 5537 4.50 4.25 14.33 3724 9.06 3724 6.64 6.79 12.72 5537 3.81 5537 2.94 2.21 6.25 Air Conditioning Contactor 5183 7.97 3737 5.06 5.18 9.69

5190 5.91 5183 7.42 7.59 14.22 5538 8.87 5190 6.08 6.22 11.65

5536 8.36 8.55 16.02

Exhibit 1









Group II: Ten (10) Construction Classifications (cont.)

675 Machinery or Equipment 3.14 2.83 9.04 675 4.66 4.66 11.34 3724 4.85 4.58 15.45 3724 9.06 3724 6.64 6.79 12.72 3724 4.61 3724 3.44 2.58 7.31 Erection or Repair 5160 2.20 2.08 7.01 5160 7.21 3737 5.06 5.18 9.69 5160 1.87 5160 1.69 1.27 3.59

9534 9.65 9.11 30.74 5160 6.64 6.79 12.72 9534 3.50 9534 3.02 2.27 6.42 5403 12.11 12.39 23.20 9526 25.35 25.93 48.57 9527 27.35 27.98 52.40 9534 16.51 16.89 31.63

Group III: Eleven (11) "Other" Classifications

009 Logging or Lumbering 19.82 17.84 57.08 009 27.73 27.73 67.47 2702 18.90 17.84 60.20 2702 29.61 2702 43.38 44.38 83.12 2702 30.39 2702 25.31 18.98 53.78

811 Trucking 6.44 5.80 18.55 811 8.04 8.04 19.56 7222 5.55 5.24 17.68 7196 14.47 7197 5.72 5.85 10.96 7222 12.67 7222 4.29 3.22 9.12 7228 5.79 5.47 18.44 7219 17.74 7219 10.88 11.13 20.85 7228 11.23 7228 4.34 3.26 9.22 7229 9.31 8.79 29.65 7250 21.29 7367 11.53 11.80 22.09 7229 9.00 7229 3.86 2.90 8.20 7230 9.46 8.93 30.13 7360 10.73 9534 16.51 16.89 31.63 7230 10.22 7230 4.18 3.14 8.88 7360 5.87 5.54 18.70 9530 9.83 7360 7.49 7360 3.14 2.36 6.67 9534 9.65 9.11 30.74 9534 3.50 9534 3.02 2.27 6.42

815 Automobile Service 2.85 2.57 8.21 815 2.94 2.94 7.15 7228 5.79 5.47 18.44 8387 7.77 7219 10.88 11.13 20.85 7228 11.23 7228 4.34 3.26 9.22 Centers 8380 2.64 2.49 8.41 8393 4.31 8391 4.29 4.39 8.22 8380 3.08 8380 2.09 1.57 4.44

8393 1.83 1.73 5.83 8397 7.77 9505 3.15 3.22 6.04 8393 2.05 8393 1.29 0.97 2.74 9505 2.85 2.69 9.08 9505 1.78 9505 2.22 1.67 4.72

917 Grocery Store, Retail 1.72 1.55 4.95 917 3.70 3.70 9.00 8006 1.82 1.72 5.80 8006 3.55 8006 1.83 1.87 3.51 8006 2.22 8006 1.03 0.77 2.19 8033 3.41 3.22 10.86 8033 6.61 8033 3.72 3.81 7.13 8033 2.47 8033 1.07 0.80 2.27

8753 3.55

928 Retail Stores, NOC 1.77 1.59 5.10 928 2.75 2.75 6.69 4360 0.73 0.69 2.33 4360 1.60 4360 0.31 0.32 0.59 4360 5.42 4360 0.64 0.48 1.36 4361 0.73 0.69 2.33 4361 1.60 4361 1.01 1.03 1.94 4361 1.00 4361 0.58 0.44 1.23 8017 1.32 1.25 4.20 8017 3.97 4362 0.55 0.56 1.05 8017 1.67 8017 0.68 0.51 1.45 8072 0.62 0.59 1.97 8017 1.47 1.50 2.82 8072 0.80 8072 0.52 0.39 1.11 8831 1.14 1.08 3.63 8831 1.52 1.55 2.91 8831 1.43 8831 0.85 0.64 1.81

951 Outside Salesmen 0.31 0.28 0.89 951 0.49 0.49 1.19 8720 1.05 0.99 3.34 8720 2.37 8720 2.33 2.38 4.46 8720 2.09 8720 0.86 0.65 1.83 8721 0.22 0.21 0.70 8742 0.60 8742 0.43 0.44 0.82 8721 0.51 8721 0.21 0.16 0.45 8742 0.26 0.25 0.83 8742 0.29 8742 0.30 0.23 0.64 9012 0.84 0.79 2.68 9012 0.76 9012 0.68 0.51 1.45

953 Office 0.14 0.13 0.40 953 0.23 0.23 0.56 8803 0.06 0.06 0.19 8803 0.28 8803 0.1 0.10 0.19 8803 0.14 8803 0.06 0.05 0.13 8810 0.12 0.11 0.38 8810 0.28 8810 0.20 0.20 0.38 8810 0.18 8810 0.15 0.11 0.32 8871 0.08 0.08 0.25 8871 0.55 0.56 1.05 8871 0.20 8871 0.10 0.08 0.21

960 Nursing Homes 2.36 2.12 6.80 960 3.65 3.65 8.88 8829 1.78 1.68 5.67 8829 5.47 8829 3.75 3.84 7.19 8829 3.83 8829 2.22 1.67 4.72

961 Hospitals 0.78 0.70 2.25 961 0.96 0.96 2.34 8833 0.71 0.67 2.26 9045 1.65 8833 1.59 1.63 3.05 8833 1.33 8833 0.58 0.44 1.23 9040 1.46 1.38 4.65 9040 5.15 5.27 9.87 9040 4.91 9040 3.42 2.57 7.27

965 Colleges and Schools 0.49 0.44 1.41 965 0.51 0.51 1.24 8868 0.26 0.25 0.83 8868 1.69 8868 0.58 0.59 1.11 8868 0.52 8868 0.22 0.17 0.47 9101 1.94 1.83 6.18 9106 10.78 9101 4.67 4.78 8.95 9101 3.23 9101 2.86 2.15 6.08

971 Commercial Buildings 3.00 2.70 8.64 971 3.89 3.89 9.46 9014 2.28 2.15 7.26 9014 6.77 9014 5.80 5.93 11.11 9014 3.41 9014 1.59 1.19 3.38 9015 2.72 2.57 8.66 9015 8.53 9026 3.79 3.88 7.26 9015 5.61 9015 2.00 1.50 4.25 9170 4.98 4.70 15.86 9028 3.48 3.56 6.67 9170 8.41 9170 3.07 2.30 6.52

9029 6.34 6.49 12.15 9030 4.86 4.97 9.31

NOTE: "A" Rated Classifications Require Rating Organization Approval of Specific Rate to be Applied to Individual Insureds

Exhibit 2

PENNSYLVANIA COMPENSATION RATING BUREAU Classification Descriptions for States Other than Pennsylvania Used in Rate Comparison

The following listing presents brief descriptions of classification definitions from states other than Pennsylvania used in the PCRB’s rate comparison study. For detailed definitions refer to each state’s classification manual and related rules. SECTION 1: MANUFACTURING CLASSIFICATION CODES DELAWARE As of July 1, 2015, the Pennsylvania manufacturing classifications studied correspond to or fall entirely within the same numerical classification in Delaware. MARYLAND Pennsylvania Maryland Maryland Classification Classification Description of Code Code Business 104 4717 Butter Substitute Mfg. 4825 Flavorings, Licorice or Medicinal

Extract Mfg. Rated as Drug, Medicine or Pharmaceutical Mfg.

6504 Food Sundries Mfg N.O.C. 8102 Peanut Handling Rated as Seed Merchant 105 2002 Macaroni Mfg.

2003 Bakery & Drivers 112 2157 Bottling NOC & Route Supervisors, Drivers 222 4431 Phonograph Manufacturing 4452 Plastics Mfg., Fabricated Products N.O.C. 4459 Plastics Mfg., Sheets, Rods or Tubes 4470 Cable Mfg., Insulated Electrical

4484 Plastics Mfg., Molded Products N.O.C. 281 2501 Cloth, Canvas and Related Products Mfg., N.O.C. 4282 Dress Pattern Mfg. - Paper 4299 Printing 4307 Bookbinding 4351 Photoengraving 4352 Engraving

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 2 MARYLAND (Continued) Pennsylvania Maryland Maryland Classification Classification Description of Code Code Business 282 4299 Printing 4304 Newspaper Publishing 301 2710 Sawmills 445 3041 Iron or Steel Fabrication - Iron Works Shop Decorative or Artistic & Foundries 3132 Nut or Bolt Mfg. 3145 Screw Mfg. 3146 Hardware Mfg., N.O.C. 3180 Electric or Gas Lighting Fixture Mfg. 3188 Plumbers’ Supplies Mfg. 3223 Lamp or Portable Lantern Mfg. 3574 Computing, Recording or Office Machine Mfg. (& Small Arms or Cartridge Mfg.) 3581 Carburetor Mfg. 3634 Valve Mfg. 9501 Painting, Shop Only & Drivers 454 3064 Sign Mfg., Metal – (Shop Only) 3076 Fireproof Equipment Mfg. 3220 Can Mfg. 3224 Agate Ware Mfg. 3227 Aluminum Ware Mfg. 3400 Metal Goods Mfg., N.O.C. 3803 Automobile Wheel Mfg., Metal (not cast) 3807 Automobile Radiator Mfg. 461 3507 Construction or Agricultural Machinery Mfg. 3515 Textile Machinery Mfg. 3548 Printing or Bookbinding Machinery Mfg. 3559 Confection Machine Mfg. 3612 Pump Mfg. 3632 Machine Shop N.O.C. 3635 Gear Mfg. or Grinding 3826 Aircraft Engine Mfg. 3827 Automobile Engine Mfg.

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 3 MARYLAND (Continued) Pennsylvania Maryland Maryland Classification Classification Description of Code Code Business 759 6325 Conduit Construction - For Wires & Cables - And Drivers 7600 Telephone or Telegraph Co.: All Other Employees and Drivers NEW JERSEY Pennsylvania New Jersey New Jersey Classification Classification Description of Code Code Business 104 2150 Ice Mfg. 4627 Extract Mfg - Dyewood 4628 Extract Mfg - Perfumery 6504 Food Sundries Mfg., N.O.C. 8102 Peanut Handling Rated as Seed Merchant 105 2002 Pasta or Noodle Mfg. 2003 Bakery & Drivers 112 2157 Bottling NOC & Route Supervisors, Drivers

222 4431 Magnetic or Optical Recording Media Mfg.

4452 Plastics Mfg., Fabricated Products N.O.C. 4459 Plastics Mfg., Sheets, Rods or Tubes 4470 Cable Mfg., Insulated Electrical 4484 Plastics Mfg. 281 0700 Textile Printing - Hand Work Only 4282 Dress Pattern Mfg - Paper 4299 Printing 4307 Bookbinding 4351 Photoengraving 4352 Engraving 282 4299 Printing 4313 Newspaper Publishing

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 4 NEW JERSEY (Continued) Pennsylvania New Jersey New Jersey Classification Classification Description of Code Code Business 301 2710 Sawmills 445 3041 Iron or Steel Fabrication - Iron Works Shop - Decorative or Artistic & Foundries 3113 Tool Mfg. - not Drop or Machine Forged N.O.C.

3132 Bolt Mfg. 3145 Screw Mfg 3146 Hardware Mfg., N.O.C.

3188 Plumbing Supplies Mfg., N.O.C. 3192 Lamp Mfg., or Assembly - Electric 3193 Electric or Gas Lighting Fixture Mfg. or Assembly 3581 Fuel Injection Device Mfg. 3634 Valve Mfg. 9501 Painting, Shop Only & Drivers NPD 454 3045 Steel Barrel or Drum Mfg. & Drivers 3066 Sheet Metal Work - Shop 3075 Coppersmith - Shop 3076 Fireproof Equipment Mfg. 3220 Can Mfg. 3227 Aluminum Ware Mfg. 3400 Metal Goods Mfg., N.O.C. 461 3507 Agricultural Machinery Mfg. 3548 Bookbinding Machine Mfg. 3612 Pump Mfg. 3632 Machine Shop N.O.C 3635 Gear Mfg. or Grinding 3826 Aircraft Engine Mfg. 759 6325 Conduit Construction for Cables & Wire 7536 Cable Installation & Drivers 7600 Telephone or Telegraph Co.: All Other Employees and Drivers 7601 Telephone, Telegraph Construction & Drivers

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 5 NEW YORK Pennsylvania New York New York Classification Classification Description of Code Code Business 104 2150 Ice Mfg. 4628 Extract Mfg. 4825 Drug, Medicine or Pharmaceutical Preparation Mfg.-Includes Mfg. of Ingredients 6504 Food Sundries Mfg. NOC-No Cereal Milling 8102 Seed Merchant 105 2001 Cracker Mfg.

2002 Macaroni Mfg. 2003 Bakery & Drivers 112 2157 Bottling NOC & Route Supervisors, Drivers 222 4431 Phonograph Manufacturing 4452 Plastics Mfg., Fabricated Products N.O.C. 4459 Plastics Mfg., Sheets, Rods or Tubes 4470 Cable Mfg., Insulated Electrical 4475 Molded Products N.O.C. (Assembly and Subsequent Finishing Operations to be Separately Rated 4476 Molded Products N.O.C. - Assembly & Subsequent Finishing Only 281 2553 Furnishing Goods Mfg. NOC—From Textile Fabrics 4282 Dress Pattern Mfg - Paper 4299 Printing 4307 Bookbinding 4351 Photoengraving 4352 Engraving 4361 Photographer—All Employees & Drivers 282 4299 Printing 4304 Newspaper Publishing 301 2710 Sawmills

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 6 NEW YORK (continued) Pennsylvania New York New York Classification Classification Description of Code Code Business 445 3041 Iron or Steel Fabrication - Iron Works Shop Decorative or Artistic & Foundries & Drivers 3129 Metal Stamped Parts Mfg. 3132 Nut or Bolt Mfg. 3145 Screw Mfg. 3146 Hardware Mfg., N.O.C. 3188 Plumbers’ Supplies Mfg., N.O.C. 3190 Electric Lighting Fixture or Lamp Mfg. Assembly & Finishing 3191 Electric Lighting Fixture or Lamp Mfg., All Operations except Assembly & Finishing 3200 Small Arms Mfg. 3336 Type Foundry 3581 Carburetor Mfg. 3634 Valve Mfg. 9501 Sign Painting, Shop Only & Drivers 454 3064 Sign Mfg. or Repair, Metal - (Shop Only) 3066 Sheet Metal Work – Shop 3067 3076 Furniture Mfg. - Metal 3220 Can Mfg. 3227 Aluminum Ware Mfg. 3381 Silverware Mfg., (includes Automobile Wheel Mfg, Metal Wheels (not Cast)

3400 Metal Goods Mfg., N.O.C. 3515 Textile Machinery Mfg. 3807 Automobile Radiator Mfg. 3832 Sheet Metal Airplane Parts Mfg. 461 3507 Construction or Agricultural Machinery Mfg. 3515 Textile Machinery Mfg. 3548 Printing or Bookbinding Machinery Mfg. 3559 Confection Machine Mfg. 3612 Pump Mfg. 3632 Machine Shop N.O.C. 3635 Gear Mfg. or Grinding

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 7 NEW YORK (continued) Pennsylvania New York New York Classification Classification Description of Code Code Business 461 (cont’d) 3826 Aircraft Engine Mfg. 3827 Automobile Engine Mfg. 759 6325 Conduit Construction - For Wires & Cables - And Drivers 7536 7600 Telephone or Telegraph Co.: All Other Employees and Drivers 7601 Telephone, Telegraph or Fire Alarm Line Construction OHIO Pennsylvania Ohio Ohio Classification Classification Description of Code Code Business 104 4717 Butter Substitute Mfg. 4825 Drug, Medicine or Pharmaceutical Preparation Mfg.-Includes Mfg. of Ingredients 6504 Food Sundries Mfg. NOC-No Cereal Milling 8102 Seed Merchant 105 2002 Macaroni Mfg. 2003 Bakery & Drivers 112 2157 Bottling NOC & Route Supervisors, Drivers 222 4431 Magnetic and Optical Media

4452 Plastics Mfg., Fabricated Products N.O.C.

4459 Plastics Mfg., Sheets, Rods or Tubes 4470 Cable Mfg., Insulated Electrical 4484 Plastics Mfg., Molded Products N.O.C. 281 2501 Cloth, Canvas and Related Products Mfg., N.O.C. 4282 Dress Pattern Mfg. - Paper 4299 Printing 4307 Bookbinding

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 8 OHIO (Continued) Pennsylvania Ohio Ohio Classification Classification Description of Code Code Business 281 (cont’d) 4351 Photoengraving 4352 Engraving 282 4299 Printing 4304 Newspaper Publishing 301 2710 Sawmills 445 3041 Iron or Steel Fabrication - Iron Works Shop Decorative or Artistic & Foundries 3132 Nut or Bolt Mfg. 3145 Screw Mfg. 3146 Hardware Mfg., N.O.C. 3180 Electric or Gas Lighting Fixture Mfg. 3188 Plumbers’ Supplies Mfg. 3223 Lamp or Portable Lantern Mfg. 3574 Computing, Recording or Office Machine Mfg. (& Small Arms or Cartridge Mfg.) 3581 Carburetor Mfg. 3634 Valve Mfg. 9501 Painting, Shop Only & Drivers 454 3064 Sign Mfg., Metal - (Shop Only) 3076 Sheet Metal Products Mfg. 3220 Can Mfg. 3224 Agate Ware Mfg. 3227 Aluminum Ware Mfg. 3400 Metal Goods Mfg., N.O.C. 3803 Automobile Wheel Mfg., Metal (not cast) 3807 Automobile Radiator Mfg. 461 3507 Construction or Agricultural Machinery Mfg. 3515 Textile Machinery Mfg. 3548 Printing or Bookbinding Machinery Mfg. 3559 Confection Machine Mfg. 3612 Pump Mfg. 3632 Machine Shop N.O.C. 3635 Gear Mfg. or Grinding

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 9 OHIO (Continued) Pennsylvania Ohio Ohio Classification Classification Description of Code Code Business 461 (cont’d) 3826 Aircraft Engine Mfg. 3827 Automobile Engine Mfg. 759 6325 Conduit Construction - For Wires & Cables - And Drivers 7600 Telephone or Telegraph Co.: All Other Employees and Drivers WEST VIRGINIA Pennsylvania West Virginia West Virginia Classification Classification Description of Code Code Business 104 4717 Butter Substitute Mfg. 4825 Drug, Medicine or Pharmaceutical Preparation Mfg.-Includes Mfg. of Ingredients 6504 Food Sundries Mfg. NOC-No Cereal Milling 8102 Seed Merchant 105 2002 Macaroni Mfg. 2003 Bakery & Drivers 112 2157 Bottling NOC & Route Supervisors, Drivers 222 4431 Phonograph Manufacturing

4452 Plastics Mfg., Fabricated Products N.O.C.

4459 Plastics Mfg., Sheets, Rods or Tubes 4470 4484 Plastics Mfg., Molded Products N.O.C. 281 2501 Cloth, Canvas and Related Products Mfg., N.O.C. 4282 Dress Pattern Mfg. - Paper 4299 Printing 4307 Bookbinding 4351 Photoengraving 4352 Engraving

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 10 WEST VIRGINIA (continued) Pennsylvania West Virginia West Virginia Classification Classification Description of Code Code Business 282 4299 Printing 4304 Newspaper Publishing 301 2710 Sawmills 445 3041 Iron or Steel Fabrication - Iron Works Shop Decorative or Artistic & Foundries 3132 Nut or Bolt Mfg. 3145 Screw Mfg. 3146 Hardware Mfg., N.O.C. 3180 Electric or Gas Lighting Fixtures Mfg. 3188 Plumbers’ Supplies Mfg. 3223 Lamp or Portable Lantern Mfg. 3574 Computing, Recording or Office Machine Mfg. (& Small Arms or Cartridge Mfg.) 3634 Valve Mfg. 9501 Painting, Shop Only & Drivers 454 3064 Sign Mfg., Metal - (Shop Only) 3076 Fireproof Equipment Mfg. 3220 Can Mfg. 3224 Agate Ware Mfg. 3227 Aluminum Ware Mfg. 3400 Metal Goods Mfg., N.O.C. 3803 Automobile Wheel Mfg – Metal – Not Cast 3807 Automobile Radiator Mfg. 461 3507 Construction or Agricultural Machinery Mfg. 3515 Textile Machinery Mfg. 3548 Printing or Bookbinding Machine Mfg. 3559 Confection Machine Mfg. 3612 Pump Mfg. 3632 Machine Shop N.O.C. 3635 Gear Mfg. or Grinding 3826 Aircraft Engine Mfg. 3827 Automobile Engine Mfg.

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 11 WEST VIRGINIA (Continued) Pennsylvania West Virginia West Virginia Classification Classification Description of Code Code Business 759 6325 Conduit Construction - For Wires & Cables - And Drivers 7600 Telephone or Telegraph Co.: All Other Employees and Drivers SECTION 2: CONTRACTING CLASSIFICATION CODES DELAWARE Pennsylvania Delaware Delaware Classification Classification Description of Code Code Business 607 607 Drilling, N.O.C. 608 608 Flat Cement Work 609 609 Excavation 651 643 Asbestos Contractor 651 Carpentry - N.O.C. 652 652 Carpentry - Detached Dwelling 661 661 Electrical Wiring – Within Buildings 663 643 Asbestos Contractor

663 Plumbing 664 664 Heating, Ventilating or Air Conditioning Contractor 675 675 Machinery or Equipment Erection or Repair

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 12 MARYLAND Pennsylvania Maryland Maryland Classification Classification Description of Code Code Business 606 6235 Oil or Gas Well: Drilling or Re-drilling

607 1322 Oil or Gas Well: Cleaning or Swabbing or Old Wells Having Previously Produced Gas or Oil – by Contractor – No Drilling & Drivers 6204 Drilling, N.O.C. 6206 Oil or Gas Well: Cementing and Drivers 6213 Oil or Gas Well: Specialty Tool Operation N.O.C. – By Contractor – All Employees & Drivers 6214 Oil or Gas Well: Perforating of Casing – All Employees & Drivers 6236 Oil or Gas Well: Installation or Recovery of Casing & Drivers 6237 Oil or Gas Well: Instrument Logging or Survey Work & Drivers 608 5215 Concrete Work - Incidental to Construction of Private Residences 5221 Concrete or Cement Work - Floors, Driveways, Yards or Sidewalks 6204 Drilling, N.O.C. 609 5703 Building Moving or Raising 6018 Dam or Lock Construction: Earth Moving or Placing - All Operations 6045 Levee Construction - All Operations to Completion 6217 Excavation 6229 Irrigation or Drainage System Construction 6233 Oil or Gas Pipeline Construction 651 5102 Door, Door Frame or Sash Erection - Metal or Metal Covered 5402 Hothouse Erection - All Operations 5403 Carpentry N.O.C. 5473 Asbestos Contractor, N.O.C.

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 13 MARYLAND (continued) Pennsylvania Maryland Maryland Classification Classification Description of Code Code Business 652 5102 Door, Door Frame or Sash Erection - Metal or Metal Covered 5645 Carpentry - Detached One or Two Family Dwellings 661 5190 Electrical Wiring Within Buildings 663 5183 Plumbing, N.O.C. 5188 Automatic Sprinkler Installation 5472 Asbestos Contractor - Pipe & Boiler Work Exclusively 664 5537 Heating and Air Conditioning and

Refrigeration Systems 675 3724 Machinery or Equipment Erection or Repair 5160 Elevator Erection or Repair 9534 Mobile Crane & Hoisting Service NEW JERSEY Pennsylvania New Jersey New Jersey Classification Classification Description of Code Code Business 606 6235 Oil or Gas Well: Drilling or Re-drilling 607 6204 Drilling, N.O.C. 608 5200 Cement Work - Sidewalks, Cellar Floors, Driveways & Drivers 5213 Concrete Construction, N.O.C. 5215 Concrete Work - Incidental to Construction of Private Residences 609 1605 Excavation – Rock & Drivers 5703 Building Raising or Moving & Drivers 6039 Grading of Land, N.O.C. & Drivers 6217 Excavation N.O.C. & Drivers 6233 Oil or Gas Pipeline Construction

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 14 NEW JERSEY (Continued) Pennsylvania New Jersey New Jersey Classification Classification Description of Code Code Business 651 5103 Door, Door Frame or Sash Erection or Repair-Metal 5402 Hothouse Erection 5403 Carpentry N.O.C. & Drivers 5701 Wrecking: Buildings or Structures – Not Marine 652 5645 Carpentry - Detached One or Two Family Dwellings 661 5190 Electrical Wiring Within Buildings 663 5183 Plumbing, N.O.C. 5184 Steam Pipe or Boiler Insulating 5188 Automatic Sprinkler Installation 664 3724 Millwright Work N.O.C. 5183 Plumbing 5190 Electrical Wiring - Within Buildings 5538 Sheet Metal Work – Shop and Outside 675 3724 Millwright Work N.O.C. 5160 Elevator Erection or Repair NEW YORK Pennsylvania New York New York Classification Classification Description of Code Code Business 606 6235 Oil or Gas Well: Drilling or Re-drilling 607 6204 Drilling, N.O.C. 608 5213 Concrete Construction, N.O.C. 5221 Concrete or Cement Work - Floors, Driveways, Yards or Sidewalks 6204 Drilling, N.O.C.

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 15 NEW YORK (continued) Pennsylvania New York New York Classification Classification Description of Code Code Business 609 5703 Building Moving or Raising 6018 Dam or Lock Construction: Earth Moving or Placing - All Operations 6045 Levee Construction - All Operations to Completion 6217 Excavation 6229 Irrigation or Drainage System Construction 6233 Oil or Gas Pipeline Construction 651 5102 Door, Door Frame or Sash Erection - Metal or Metal Covered 5402 Hothouse Erection - All Operations 5403 Carpentry N.O.C. 5473 Asbestos Contractor - Removal, Replacement, Repair, Enclosure or Encapsulation 652 5102 Door, Door Frame or Sash Erection - Metal or Metal Covered 5645 Carpentry - Detached One or Two Family Dwellings 5651 Carpentry - Dwellings - Three Stories or Less 661 5190 Electrical Wiring Within Buildings 663 5183 Plumbing, N.O.C. 5184 Steam, Pipe or Boiler Insulating 5188 Automatic Sprinkler Installation 664 3724 Air Conditioning, Heating or Ventilating Machinery Installation 3737 Electrical Apparatus Repair or Servicing 5183 Plumbing 5190 Repair or Servicing - Cleaning, Oiling, Adjusting - Rated as Electrical Wiring - Within Buildings 5536 Heating and Air Conditioning Duct Work - Shop and Outside

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 16 NEW YORK (continued) Pennsylvania New York New York Classification Classification Description of Code Code Business 675 3724 Machinery or Equipment Erection or Repair 3737 Machinery or Equipment Repair or Servicing at Customers' Premises NOC & Drivers 5160 Elevator Erection or Repair 5403 Carpentry N.O.C. (Scaffolds - Outrigger Installation) 9526 Scaffolds, Built Up Installation 9527 Scaffolds, Sidewalk Bridges Installation 9534 Mobile Crane and Hoisting Service Contractors, N.O.C. OHIO Pennsylvania Ohio Ohio Classification Classification Description of Code Code Business 606 6235 Oil or Gas Well: Drilling or Re-drilling 607 1322 Oil or Gas Well: Cleaning or Swabbing or Old Wells Having Previously Produced Gas or Oil – by Contractor – No Drilling & Drivers 6204 Drilling, N.O.C. 6206 Oil or Gas Well: Cementing and Drivers 6213 Oil or Gas Well: Specialty Tool Operation N.O.C. – By Contractor – All Employees & Drivers 6214 Oil or Gas Well: Perforating of Casing – All Employees & Drivers 6236 Oil or Gas Well: Installation or Recovery of Casing & Drivers 6237 Oil or Gas Well: Instrument Logging or Survey Work & Drivers

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 17 OHIO (Continued) Pennsylvania Ohio Ohio Classification Classification Description of Code Code Business 608 5213 Concrete Construction, N.O.C. 5215 Concrete Work - Incidental to Construction of Private Residences 5221 Concrete or Cement Work - Floors, Driveways, Yards or Sidewalks 6204 Drilling, N.O.C. 609 5703 Building Moving or Raising 6018 Dam or Lock Construction: Earth Moving or Placing - All Operations 6045 Levee Construction - All Operations to Completion

6217 Excavation 6229 Irrigation or Drainage System Construction

6233 Oil or Gas Pipeline Construction 651 5102 Door, Door Frame or Sash Erection - Metal or Metal Covered 5402 Hothouse Erection - All Operations 5403 Carpentry, N.O.C. 5473 Asbestos Contractor, N.O.C. 652 5102 Door, Door Frame or Sash Erection - Metal or Metal Covered 5645 Carpentry - Detached One or Two Family Dwellings 661 5190 Electrical Wiring Within Buildings 663 5183 Plumbing, N.O.C. 5188 Automatic Sprinkler Installation 5472 Asbestos Contractor - Pipe & Boiler 664 5537 Heating and Air Conditioning and

Refrigeration Systems 675 3724 Machinery or Equipment Erection or Repair 5160 Elevator Erection or Repair 9534 Mobile Crane & Hoisting Service

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 18 WEST VIRGINIA Pennsylvania West Virginia West Virginia Classification Classification Description of Code Code Business 606 6235 Oil or Gas Well: Drilling or Re-drilling 607 1322 Oil or Gas Well: Cleaning or Swabbing or Old Wells Having Previously Produced Gas or Oil – by Contractor – No Drilling & Drivers 6204 Drilling, N.O.C. 6206 Oil or Gas Well: Cementing and Drivers 6213 Oil or Gas Well: Specialty Tool Operation N.O.C. – By Contractor – All Employees & Drivers 6214 Oil or Gas Well: Perforating of Casing – All Employees & Drivers 6236 Oil or Gas Well: Installation or Recovery of Casing & Drivers 6237 Oil or Gas Well: Instrument Logging or Survey Work & Drivers 608 5215 Concrete Work - Incidental to Construction of Private Residences 5221 Concrete or Cement Work - Floors, Driveways, Yards or Sidewalks 6204 Drilling, N.O.C. 609 5703 Building Moving or Raising 6018 Dam or Lock Construction: Earth Moving or Placing - All Operations 6045 Levee Construction - All Operations to Completion 6217 Excavation 6229 Irrigation or Drainage System Construction

6233 Oil or Gas Pipeline Construction 651 5102 Door, Door Frame or Sash Erection - Metal or Metal Covered 5402 Hothouse Erection - All Operations 5403 Carpentry, N.O.C. 5473 Asbestos Contractor, N.O.C.

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 19 WEST VIRGINIA (continued) Pennsylvania West Virginia West Virginia Classification Classification Description of Code Code Business 652 5102 Door, Door Frame or Sash Erection - Metal or Metal Covered 5645 Carpentry - Detached One or Two Family Dwellings 661 5190 Electrical Wiring Within Buildings 663 5183 Plumbing, N.O.C. 5188 Automatic Sprinkler Installation 5472 Asbestos Contractor - Pipe & Boiler 664 5537 Heating, Ventilation, Air-Conditioning and Refrigeration Systems

675 3724 Machinery or Equipment Erection or Repair 5160 Elevator Erection or Repair 9534 Mobile Crane & Hoisting SECTION 3: OTHER INDUSTRIES CLASSIFICATION CODES DELAWARE: The Delaware classification plan is identical to Pennsylvania for all Other Industries classifications studied. MARYLAND Pennsylvania Maryland Maryland Classification Classification Description of Code Code Business 009 2702 Logging 811 7222 Trucking, Oil Field Equipment, All Employees & Drivers 7228 Trucking, Local Hauling 7229 Trucking - Long Distance Hauling 7230 Trucking- Parcel or Package Delivery 7360 Freight Handling, N.O.C. 9534 Mobile Crane and Hoisting Service Contractor N.O.C. - All Operations (Including Yard)

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 20 MARYLAND (Continued) Pennsylvania Maryland Maryland Classification Classification Description of Code Code Business 815 7228 Automobile Towing 8380 Automobile Service Or Repair Center 8393 Automobile Body Repair 9505 Painting – Automobile or Carriage Bodies 917 8006 Gasoline Station: Self Service and Convenience/Grocery - Retail 8033 Store: Meat, Grocery and Provision Stores Combined – Retail N.O.C. 928 4360 Motion Picture – Development of Negatives, Printing & All Subsequent Operations 4361 Photographer, All Employees & Clerical, Salespersons, Drivers 8017 Retail Store, NOC 8072 Store: Book, Record, Compact Disc, Software, Video Or Audio Cassette – Retail 8831 Pet Grooming – rated as Hospital – Veterinary 951 8720 Inspection of Risks for Insurance or Valuation Purposes 8721 Real Estate Appraisal Company – Outside Employees 8742 Salespersons, Collectors or Messengers 9012 Building Operation by Owner, Lessee or Real Estate Management Firm: Professional Employees, Property Managers & Leasing Agents including Clerical Office & Sales 953 8803 Auditor - Traveling 8810 Clerical Office Employees, N.O.C. 8871 Clerical Telecommuter Employees

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 21 MARYLAND (Continued) Pennsylvania Maryland Maryland Classification Classification Description of Code Code Business 960 ** 8829 Convalescent or Nursing Home -All Employees

961 8833 Hospital: Professional Employees 9040 Hospital: All Other Employees

965 * 8868 Colleges: Professional Employees & Clerical 9101 Colleges: All Other Employees 971 9014 Buildings - Operation by Contractor 9015 Buildings - Operation by Owner 9170 Buildings – Operation by Contractors – Includes window cleaning above one story NEW JERSEY Pennsylvania New Jersey New Jersey Classification Classification Description of Code Code Business 009 2702 Logging or Lumbering

811 7196 Truckmen: Handling Liquid or Liquefied Products in Tank Trucks 7219 Truckmen – N.O.C. 7250 Truckmen: Hauling Explosives or Ammunition 7360 Freight Handling, N.O.C.

9530 Rigging N.O.C. 815 8387 Auto Service Station 8393 Auto Sales or Service Agency & Parts, Service Dept. Employees

8397 Automobile Garage Or Repair Shop & Parts, Service Dept. Employees

917 8006 Store – Grocery Retail 8033 8753

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 22 NEW JERSEY (continued) Pennsylvania New Jersey New Jersey Classification Classification Description of Code Code Business

928 4360 Duplication & Replication Service Of Prerecorded Audio, Video Or Data

4361 Photographer, All Employees & Clerical, Salespersons, Drivers 8017 Retail Store, N.O.C.

951 8720 Inspection for Insurance Purposes 8742 Salespersons - Outside 953 8803 Auditor - Traveling 8810 Clerical Office Employees, N.O.C. 960 ** 8829 ** Convalescent Home and Drivers 961 9045 Hospital 965 * 8868 School: Professional Employees & Clerical 9106 School: Non-Professional Employees & Drivers 971 9014 Building – Operation by Contractor 9015 Building - Operation by Owner or Lessee NEW YORK Pennsylvania New York New York Classification Classification Description of Code Code Business 009 2702 Logging 811 7197 Trucking: Trucking Parcels or Packages - Home Delivery for Stores 7219 Trucking, N.O.C., includes Trucking, Oil Field Equipment All Employees & Drivers 7367 Freight Handling, N.O.C.

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 23 NEW YORK (Continued) Pennsylvania New York New York Classification Classification Description of Code Code Business 811 (cont’d) 9534 Mobile Crane and Hoisting Service Contractor, N.O.C. - All Operations (Including Yard) 815 7219 Automobile Towing rated as Trucking N.O.C. – All Employees & Drivers 8391 Automobile Repair Shop – All Operations & Drivers

9505 Painting – Automobile Or Carriage Bodies

917 8006 Grocery Store - Retail 8033 Supermarket - Retail

928 4360 Motion Picture – Development of Negatives, Printing & All Subsequent Operations 4361 Photographer, All Employees & Clerical, Salespersons, Drivers 4362 Motion Picture – Film Exchange 8017 Retail Store, NOC 8831 Pet Grooming – rated as Hospital – Veterinary 951 8720 Inspection of Risks for Insurance or Valuation Purposes 8742 Salespersons, Collectors or Messengers 953 8803 Auditor - Traveling 8810 Clerical Office Employees, N.O.C. 8871 Clerical Telecommuter Employees 960 ** 8829 Convalescent or Nursing Home -All Employees 961 8833 Hospital: Professional Employees

9040 Hospital: All Other Employees 965 * 8868 Colleges: Professional Employees & Clerical 9101 Colleges: All Other Employees

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 24 NEW YORK (Continued) Pennsylvania New York New York Classification Classification Description of Code Code Business 971 9014 Exterminator 9026 Building Operation - Commercial 9028 Building Operation N.O.C. 9029 Building N.O.C., Repair Only 9030 Building Service Contractor OHIO Pennsylvania Ohio Ohio Classification Classification Description of Code Code Business 009 2702 Logging 811 7222 Trucking, Oil Field Equipment, All Employees & Drivers 7228 Trucking, Local Hauling 7229 Trucking - Long Distance Hauling 7230 Trucking - Parcel or Package Delivery 7360 Freight Handling, N.O.C. 9534 Mobile Crane and Hoisting Service Contractor, N.O.C. - All Operations (Including Yard) 815 7228 Trucking, Local Hauling 8380 Automobile Service Or Repair Center 8393 Automobile Body Repair 9505 Painting – Automobile or Carriage

Bodies 917 8006 Gasoline Station: Self Service and Convenience / Grocery - Retail 8033 Store: Meat, Grocery and Provision Stores Combined – Retail NOC

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 25 OHIO (continued) Pennsylvania Ohio Ohio Classification Classification Description of Code Code Business 928 4360 Motion Picture – Development of Negatives, Printing & All Subsequent Operations 4361 Photographer, All Employees & Clerical, Salespersons, Drivers 8017 Retail Store, NOC 8072 Store: Book, Record, Compact Disc, Software, Video Or Audio Cassette – Retail 8831 Pet Grooming – rated as Hospital – Veterinary 951 8720 Inspection of Risks for Insurance or Valuation Purposes 8721 Real Estate Appraisal Company – Outside Employees

8742 Salespersons, Collectors or Messengers

8803 Auditors, Accountants or Factory Cost or Office Systematizer 9012 Building Operation by Owner, Lessee or Real Estate Management Firm: Professional Employees, Property Managers & Leasing Agents Including Clerical Office & Sales 953 8803 Auditor - Traveling 8810 Clerical Office Employees, N.O.C. 8871 Clerical Telecommuter Employees 960 ** 8829 Convalescent or Nursing Home - All Employees 961 8833 Hospital: Professional Employees 9040 Hospital: All Other Employees 965 * 8868 Colleges: Professional Employees & Clerical

9101 Colleges: All Other Employees 971 9014 Buildings - Operation by Contractor 9015 Buildings - Operation by Owner 9170 Buildings – Operation by Contractors

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 26 WEST VIRGINIA Pennsylvania West Virginia West Virginia Classification Classification Description of Code Code Business 009 2702 Logging 811 7222 Trucking, Oil Field Equipment, All Employees & Drivers 7228 Trucking, Local Hauling 7229 Trucking - Long Distance Hauling 7230 Trucking - Parcel or Package Delivery 7360 Freight Handling, N.O.C. 9534 Mobile Crane and Hoisting Service Contractor, N.O.C. - All Operations (Including Yard) 815 7228 Automobile Towing 8380 Automobile Service Or Repair Center 8393 Automobile Body Repair 9505 Painting – Automobile or Carriage Bodies 917 8006 Gasoline Station: Self Service and Convenience / Grocery - Retail 8033 Store: Meat, Grocery and Provision Stores Combined – Retail NOC 928 4360 Motion Picture – Development of Negatives, Printing & All Subsequent Operations 4361 Photographer, All Employees & Clerical, Salespersons, Drivers 8017 Retail Store, NOC 8072 Store: Book, Record, Compact Disc, Software, Video Or Audio Cassette – Retail 8831 Pet Grooming – rated as Hospital – Veterinary

Pennsylvania Compensation Rating Bureau Comparison of Rates: Pennsylvania to Other Northeastern States Exhibit 2 Page 27 WEST VIRGINIA (continued) Pennsylvania West Virginia West Virginia Classification Classification Description of Code Code Business 951 8720 Inspection of Risks for Insurance or Valuation Purposes 8721 Real Estate Appraisal Company – Outside Employees 8742 Salespersons or Collectors - Outside 9012 Building Operation by Owner, Lessee or Real Estate Management Firm: Professional Employees, Property Managers & Leasing Agents Including Clerical Office & Sales 953 8803 Auditor - Traveling 8810 Clerical Office Employees, N.O.C. 8871 Clerical Telecommuter Employees 960 ** 8829 Convalescent or Nursing Home - All Employees 961 8833 Hospital: Professional Employees 9040 Hospital: All Other Employees 965 * 8868 Colleges: Professional Employees & Clerical 9101 College: All Other Employees 971 9014 Buildings - Operation by Contractor 9015 Buildings - Operation by Owner 9170 Buildings – Operation by Contractors – Includes window cleaning above one story NOTES: N.O.C. - Not Otherwise Classified in state manual * Designates classification which includes all employees including office ** Designates classification which includes all employees EXCEPT office

Pennsylvania Compensation Rating Bureau Exhibit 3 Summary Rate Comparison for Selected Largest Pennsylvania Classifications

PA Effective 4/1/15 Effective 12/1/14 Effective 1/1/15 Effective 1/1/15 Effective 10/1/13 Effective 7/1/15 Effective 11/1/14Code Description Low High Low High Low High Low High Low High Low High Low High

Group I: Manufacturing Classifications

104 Food Sundries Mfg, NOC 2.58 8.27 4.59 11.17 0.67 7.36 2.20 10.95 1.19 17.97 1.04 3.27 0.43 4.78105 Bakery, Wholesale 2.51 8.04 4.27 10.39 2.16 14.17 8.07 10.20 6.34 13.93 3.65 6.36 1.32 5.04112 Beverage Mfg. 7.92 25.34 12.80 31.14 3.66 12.36 (A) Rated (A) Rated 11.62 21.77 4.95 4.95 3.63 10.29222 Plastic Articles Mfg, NOC 2.09 6.68 4.77 11.61 1.26 11.82 4.66 12.55 3.12 9.06 1.22 3.47 0.74 3.97281 Printing, N.O.C. 1.67 5.36 2.89 7.03 0.85 7.13 3.20 4.10 0.68 6.42 0.84 3.46 0.49 2.98282 Newspaper Publishing 5.07 16.21 7.46 18.15 1.79 9.97 3.90 5.40 3.43 12.17 1.95 4.29 1.00 5.19301 Sawmill 4.41 14.11 7.14 17.37 7.21 24.33 23.14 23.14 8.20 15.37 6.59 6.59 4.49 12.73445 Hardware Mfg 2.27 7.26 4.63 11.26 0.82 22.33 2.09 9.69 2.16 10.86 1.13 7.24 0.62 6.63

0067 OD Supplemental for 445 ** 0.08 0.26454 Sheet Metal Products 2.30 7.37 7.48 18.20 1.68 17.39 4.82 13.15 3.37 76.35 2.91 32.42 0.68 5.46461 Machine Shop 1.91 6.11 4.53 11.02 1.15 9.56 4.85 10.55 2.43 13.89 0.90 3.27 0.35 5.78759 Cable Operations 4.57 14.63 4.91 11.95 3.24 17.39 8.41 12.73 5.67 17.84 4.73 6.59 1.45 9.78

Group I Average * $2.59 $8.28 $5.21 $12.68 $1.49 $12.75 $4.76 $10.43 $3.25 $20.90 $1.89 $7.98 $0.82 $5.55

Group II: Contracting Classifications

606 Oil or Gas Well Drilling 6.47 20.71 N/A N/A 6.09 20.54 8.73 8.73 8.53 15.98 5.55 5.55 6.44 18.25607 Drilling, N.O.C. 4.32 13.82 8.49 20.66 1.58 33.67 14.77 14.77 13.23 24.77 1.38 21.30 0.80 12.11608 Flat Cement Work 4.73 15.15 6.57 15.98 4.12 33.67 12.81 17.70 11.99 32.25 5.51 8.33 1.68 11.56609 Excavation 3.38 10.83 5.76 14.01 2.55 52.93 9.26 28.43 3.91 30.22 3.67 15.33 1.34 19.27651 Carpentry 5.38 17.22 7.14 31.97 3.69 61.22 14.34 20.66 10.81 51.18 5.06 9.91 1.97 10.20652 Carpentry - Residential 6.83 21.86 9.10 22.14 5.68 26.50 20.33 20.33 7.26 24.54 7.12 8.14 2.93 19.25661 Electrical Wiring - 2.63 8.41 3.17 7.71 3.02 10.19 5.91 5.91 6.22 11.65 3.01 3.01 1.19 3.38

Within Buildings663 Plumbing 3.14 10.05 4.63 31.97 4.30 16.28 4.32 7.97 5.33 15.46 2.65 10.87 1.04 5.84664 Heating, Ventilating or 3.00 9.59 5.36 13.04 4.25 14.33 5.91 9.06 5.18 16.02 3.81 3.81 2.21 6.25

Air Conditioning Contactor675 Machinery or Equipment 2.83 9.04 4.66 11.34 2.08 30.74 7.21 9.06 5.18 52.40 1.87 4.61 1.27 7.31

Erection or RepairGroup II Average * $3.82 $12.23 $5.69 $18.00 $3.44 $29.96 $9.31 $14.31 $6.93 $26.96 $3.56 $9.32 $1.73 $10.62

Group III: "Other" Classifications

009 Logging or Lumbering 17.84 57.08 27.73 67.47 17.84 60.20 29.61 29.61 44.38 83.12 30.39 30.39 18.98 53.78811 Trucking 5.80 18.55 8.04 19.56 5.24 30.74 9.83 21.29 5.85 31.63 3.50 12.67 2.27 9.22815 Auto mobile Service Centers 2.57 8.21 2.94 7.15 1.73 18.44 4.31 7.77 3.22 20.85 1.78 11.23 0.97 9.22917 Grocery Store, Retail 1.55 4.95 3.70 9.00 1.72 10.86 3.55 6.61 1.87 7.13 2.22 2.47 0.77 2.27928 Retail Stores, NOC 1.59 5.10 2.75 6.69 0.59 4.20 1.60 3.97 0.32 2.91 0.80 5.42 0.39 1.81951 Outside Salesmen 0.28 0.89 0.49 1.19 0.21 3.34 0.60 2.37 0.44 4.46 0.29 2.09 0.16 1.83953 Office 0.13 0.40 0.23 0.56 0.06 0.38 0.28 0.28 0.10 1.05 0.14 0.20 0.05 0.32960 Nursing Homes 2.12 6.80 3.65 8.88 1.68 5.67 5.47 5.47 3.84 7.19 3.83 3.83 1.67 4.72961 Hospitals 0.70 2.25 0.96 2.34 0.67 4.65 1.65 1.65 1.63 9.87 1.33 4.91 0.44 7.27965 Colleges and Schools 0.44 1.41 0.51 1.24 0.25 6.18 1.69 10.78 0.59 8.95 0.52 3.23 0.17 6.08971 Commercial Buildings 2.70 8.64 3.89 9.46 2.15 15.86 6.77 8.53 3.56 12.15 3.41 8.41 1.19 6.52

Group III Average * $0.47 $1.51 $0.75 $1.83 $0.34 $3.05 $1.07 $2.97 $0.57 $4.15 $0.53 $1.78 $0.22 $2.17

Combined Average - All Groups * $0.79 $2.52 $1.28 $3.35 $0.59 $5.22 $1.77 $4.05 $1.11 $6.44 $0.79 $2.57 $0.34 $2.87

* Averages Computed Using Pennsylvania Payrolls by Classification as Weights (excluding class 0067)** Applies to Employers in Class 445 with Foundry Exposure

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Documents

Pennsylvania Compensation Rating Bureau · 2016. 9. 20. · Pennsylvania Compensation Rating Bureau Comparison of Workers’ Compensation Rates Effective April 1, ... Discussion of