Class Code: 8103

Per NCCI's Scopes Code Description:

 Code 8103 is applied to wool merchants who purchase raw wool from others and process it for resale to their customers. The wool is received, usually in large burlap bags weighing approximately 500 pounds, and stored until ready to be processed. The operations involve removing the wool from the bags, hand sorting, grading and then replacing in burlap bags according to grade. The graded wool is then stored and subsequently shipped.

This classification is applied to dealers in new textile clippings. Remnants purchased from textile mills, clothing manufacturers, etc., are received in burlap bags or bales and placed into storage prior to processing. The operations involve the removal of the remnants from the bags or bales, hand sorting, trimming to size, grading, weighing and baling prior to shipment.

Code 8103 also is applied to employers dealing in wiping cloths. Rags are received from outside sources and placed in storage before processing. The operations involve the washing, extracting, and drying of soiled rags. All stock is then sorted, trimmed on cutting machines to remove buttons, snaps, zippers, etc., sized and graded to complete the wiping cloths, which are then baled or placed into cartons of 10, 25 or 50 lots to be shipped to customers.

Code 8103 additionally is applied to cotton merchants. These employers purchase ginned cotton from others for resale to their customers. This classification includes warehouse and yard operations performed in connection with the merchandising of the cotton.

This classification also is applied to employers that exclusively store baled cotton. In the majority of cases, the baled cotton has been sampled and graded, and it is merely held at the warehouses awaiting the shipment orders from the owners of the cotton.

Note:  Refer to the Note listed under Code 8001 for underwriting guidelines that are applicable to stores and dealers.

State Addendum

Refer to Code 8264 for insureds dealing in wiping cloths.

Note:  Refer to Note listed under Code 8001 for the approved interpretations applicable to stores and dealers.

Rate per $100. of Renumeration: $ 2.42

Construction Exemption Required: No