UNIT STAT Date Most Important For Workers Comp Policies
The most important date on the Workers Comp calendar is one that only a few select people know or follow. (UNIT STAT date).
If you thought it was the renewal date, you are throwing Workers Comp $ down the drain. Check with this blog tomorrow to find out when your reserves + paid = total incurred pegs to your Experience Modifier. You will be shocked.
One should mark this on their calendar as one of the most critical days for any company’s budget process in the area of worker’s comp policies. The renewal date is important, but not as important as this special time of the year – and we are not talking about Christmas. LOL
Why do I keep bringing up this very important date? Over 99% of the employers we have answered this question have said the renewal date. When only .6% of the employers know the answer, we become very concerned.
The second choice by employers centered on claim dates. This choice made us wonder what employers meant by that term. The First Reporting Lag time was what the employers meant by that choice.
UNIT STAT Date Is The Answer
The UNIT STAT Date is the answer to the question. OK, so what is the most important date of Workers Compensation? Not one employer has emailed us the correct answer. We asked a workers comp question earlier in this in the last post.
We have posted on the Unit Statistical Date subject before in this blog. We usually hear the following answers:
- The Workers Comp policy renewal date
- The claims reporting date
- The Workers Comp policy expiration date
- The date that the NCCI or State Rating Bureau calculates the E-Mod
- The Workers Comp audit billing date
- The day the Insurance Carrier’s Workers Comp auditor visits
None of the above are correct – the last one is important but not as important as the UNIT STAT Date. Check the next blog for an explanation of the critical date. After this article, you should always mark it on your calendar.
Yes, the policy renewal date is important. However, everyone knows about the policy renewal date. The UNIT STAT date is one that quietly passes by each year without anyone but the insurance carrier statistical reporting staff and the Rating Bureaus.
UNIT STAT Date Critical for Experience Mods
Why is the Unit Stat Date the most critical date of any Workers Compensation policy?
The Unit Statistical Date is the actual date that the reserves/total incurred is used to calculate your E-Mods. It is not the policy renewal date. We have seen agents, adjusters, and even some underwriters become very concerned about an employer’s Workers Comp policy during the last month of the policy.
Other than marketing the insurance company, the last month of a Workers Comp policy is a useless time to do anything in regards to reducing the reserves on a file.
Your reserve review program must center on the Unit Stat filing date to the rating bureaus.
The UNIT STAT report is filed by your insurance carrier with the State Rating Bureau or NCCI to calculate your Experience Mod. The UNIT STAT report is one of those kinds of “hidden” factors that figure into your Workers Comp policy.
©J&L Risk Management Inc Copyright Notice