Agreement states are a crucial concept in the insurance industry, particularly for workers` compensation insurance. The term refers to states that have signed agreements with the federal government to participate in the National Council on Compensation Insurance (NCCI) rating and statistical organization.

There are currently 36 agreement states in the United States, including Alabama, Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, and Wisconsin.

In these agreement states, the NCCI collects data on workplace injuries and costs, and creates a rating system for workers` compensation insurance premiums. This rating system is used by insurance companies to calculate the cost of coverage for employers in these states.

Being a part of the NCCI and having a rating system in place can benefit agreement states in several ways. First, it can help promote fair and consistent rates for workers` compensation insurance, ensuring that employers are not unfairly charged premiums. Additionally, it can help promote safety in the workplace, as employers are incentivized to reduce workplace injuries and claims in order to maintain lower insurance premiums.

It`s important to note that non-agreement states also have their own rating systems in place for workers` compensation insurance premiums. However, these systems may differ from the NCCI`s rating system used in agreement states.

In conclusion, agreement states are those states that participate in the NCCI rating and statistical organization for workers` compensation insurance. These states benefit from a consistent and fair rating system that can promote workplace safety and fair insurance premiums for employers.