NCCI Rules On Calculating E-Mod
One of the newer NCCI rules that applies to policy renewals and the way the E-Mod is calculated was a radical change. The change is the rule for how many times a Workers Comp policy can apply to an E-Mod went from three to an infinite number of times as long as the total number of months covered is 45 months or less.
The old rule was that a policy could only apply to an E-Mod a total of 3 times. We do not think it is fair to employers that a policy could apply to an employer’s E-Mod so many times, as from what we have seen, this makes the E-Mod artificially higher than it should be in most cases.
This new rule is quite a departure from the “maximum 3 times” rule. There is not much that an employer can do about this rule change other than making sure that the 45 month barrier is not crossed for inclusion into the E-Mod of any of their policies.
We will cover this new rule in the next posting on NCCI rules.
©J&L Risk Management Inc Copyright Notice