What Is Incurred But Not Reported Incurred But Not Reported (IBNR)- An estimate of the amount of an insurer’s (or self-insurer’s) liability for claim-generating events that have taken place but have not yet been reported to the insurer or self-insurer. The sum of IBNR losses plus incurred losses provides an
Term Of The Day – Loss Development Factor The Loss Development Factor is also known as LDF is an element used to adjust losses to reflect the Incurred But Not Reported losses (IBNR) under the retrospective method of rating. Where I have seen LDFs used the most are for Workers
Experience Modification Factor E-ModCan Be Debit, Credit or Neutral There has been much discussion in the last week on the Experience Modification Factor (E-Mod or X-Mods). My definition is your company’s Workers Comp credit score. From NCCI – Experience modifier (mod) is a multiplier applied to the premium of a
The Feds Crackdown Down On Subcontractors The State of Oklahoma and Feds crackdown on dishonest subcontractors. Oklahoma organizations that misclassify employees as independent contractors are the target of new legislation approved by the Oklahoma House of Representatives. Senate Bill 1384 would allow the Oklahoma Tax Commission, the Oklahoma Workers’ Compensation
Total Incurred Means Two Different Things In Two Different Places The Total Incurred part of claims reserves consists of the indemnity reserve added to medical reserves for reporting to the rate bureaus. The figure does not include ALAE better known as an allocated expense. Distinguishing expenses from medical incurred is
Workers Comp Acronyms Often Used In Documentation The correct workers comp acronyms are critical to Workers Comp communications. In one of the LinkedIn Workers Comp blogs today, quite a few of the posters were talking about why an injured employee is called a claimant. I agree that the term sounds
Term Of The Day – Remuneration This is an archaic word at best. It is still used in Workers Comp vernacular as opposed to payroll, etc. Please note that this is a generic list and may not apply to all jurisdictions. Remuneration is not another Workers Comp term for payroll.
Term Of The Day – Workers Comp Premium Audit A Workers Comp Premium Audit – A methodical examination of an insured’s operations, records and books of account. The audit is performed to determine the actual insurance exposures for the coverage provided and concluded with a report of the findings. A
Premium Auditor Definition Workers Comp Premium Auditor – an individual who performs the audit of remuneration at the end of a policy period. The premium auditor may be an employee of the insurance company or a contractor hired by the insurance company. He or she contacts the insured, on behalf
Schedule Credits Can Save Big on Premiums Schedule Credits – discretionary premium adjustment based on underwriters evaluation of special characteristics of a risk not reflected in the E-Mod. The opposite adjustment is schedule debits. I have seen where the Schedule Credits or Debits can cause a 25% increase or a
California Workers Comp Rates The California Workers Comp Rates will be staying low for 2010. The Workers Compensation Insurance Rating Bureau of California (WCIRB) recently released the December 31, 2009 Summary of Insurer Experience. One of the most interesting statistics was the Average Insurer Rate per $100 of Payroll. The
Senator Thinks of WC Federalization The Federalization of Workers Comp the Senator was think so.I have been told by many in the insurance industry how I was so far off the mark in coining the phrase the Federalization of Insurance including Workers Compensation. As you read this please remember that
Nashville TN – Premium Auditor Conference I recently attended an annual insurance premium auditor conference in Nashville, TN. I had contemplated attending the conference for a number of years. The group is called the National Society of Insurance Premium Auditors (NSIPA). The conference was very informative. Their website is here.
Risk Management Diary For Workers Comp Subrogation The Workers Comp Subrogation handlers should have a risk management diary. A few posts ago I analyzed the Workers Compensation adjuster situation in handling third party liability claims. In defense of the Workers Comp adjuster, a requirement for the job is NOT
Workers Comp Large Deductibles Still Have E-Mod – Shocker The Workers Comp Large Deductibles have always been reported to the rating bureaus. Reader Question – We have a large deductible. Our Company is basically self insured. We have heard this comment often lately as larger employers seek to control
Workers Comp Money – Subrogation Concerns Sometimes Subrogation turns into the Workers Comp money left on the table. I have covered subrogation a few times in prior posts. I am bringing it up again due to our recent Workers Comp file reviews. One area that we have noticed a lack
Second Most Expensive State Is M0ntana I noticed that the 2nd most expensive state is Montana. I have not posted for some time on the state funds. One article that caught my eye was on the Workers Compensation situation in the state of Montana. Montana had been off the news
Ten Ways To Prepare for the Death Of Workers Comp This Ten ways to prepare for the Death of Workers Comp comes from how to keep your job. I have waited to return to this subject due to another blogger’s opinion who claims to be a health and Workers’ Comp
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