Class Code: 4777

Per NCCI's Scopes Code Description:

Code 4777 is applied to insureds engaged in the distribution of explosives and/or the preparation and distribution of blasting agents. While the preponderance of materials handled by these dealers is blasting agents, virtually all such dealers handle a small amount of high explosives, usually in the form of detonators. Insureds within the scope of this classification purchase their explosives from explosive manufacturers for resale to their customers. Blasting agents are made from an oxidizer, usually ammonium nitrate pellets or pills, and additives such as -2 diesel fuel and red dye, which are received from others. The preparation of the blasting agents involves saturation of the oxidizer with the additives. This is primarily a mixing operation usually involving one or two people. The finished blasting agent may be shipped in bulk or it may be bagged at the mixing plant and then delivered to customers. This classification does not contemplate blasting operations but these dealers, as a part of their customer services, may be consulted on the proper handling and optimum use of the blasting agents and explosives.

Code 4777 is also assigned to retail or wholesale mercantile risks that sell display or special fireworks which are designated as Class B or Division 1.3 explosives by the U. S. Department of Transportation (DOT). These mercantile risks or others may also sell common or consumer fireworks that are designated as Class C or Division 1.4 explosives by the DOT. The following classification procedure is effective January 1, 1999 and thereafter on new or renewal policies issued to mercantile risks engaged in the sale of Class C or Division 1.4 explosives:

   
1.    Mercantile risks that sell Class B or Division 1.3 explosives are assigned to Code 4777 even if the risk sells Class C or Division 1.4 explosives and receipts from these Class C or Division 1.4 explosives constitute the principal receipts of the business.
2.    Mercantile risks that exclusively sell Class C or Division 1.4 explosives are classified to either Code 8017 or 8018 based on whether the principal receipts for this merchandise are wholesale or retail in nature per the mercantile risk underwriting guidelines described in Code 8001.
3.    Mercantile risks that sell Class C or Division 1.4 explosives and other merchandise excluding Class B or Division 1.3 explosives are classified to an appropriate mercantile class per the underwriting guidelines described in Code 8001.

Rate per $100. of Renumeration: $ 3.31

Construction Exemption Required: No