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.
In most situations, the NCCI will only apply three policies even with the new rule.
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.
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