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Experience Period Operates From Past Few Policy Years

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Experience Period Does Not Operate In The Present

The Experience Period is the interval in which loss and exposure data is used to calculate the experience modification factor for an employer. In normal circumstances, the time period is 3 years and begins 4 years in the past. However, if the employer’s premiums become exceptionally low during any of the 3 years in this period, the employer becomes ineligible for experience rating.

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 The Workers Compensation rating system is a delayed or laggard system.  The lagging system drives many CFO’s, Risk Managers, and Safety Personnel up the wall.  A great safety program installed by an employer will show results if a company or organization is patient.  In the age of the smartphone, instant results rule the day. 

The claims your company has experienced in the current and last policy period do not apply the Experience Modification Factor.  Many companies make the mistake of not being patient with their current safety and loss control programs.   They may be working fine.  However, they may not show fully in the Mod Factor for months or years.

Some employers have even eliminated or downsized their Safety and Risk Management Departments with a pending E-Mod drop.  The drop often justifies the employees or departments.

The Experience Period may reach back 57 months into the past.  This does not mean to give up on your safety program.  Constantly and consistently  instilling safety in your company’s workplace pay dividends.

Obtaining a copy of your Rating Bureau worksheets will show you which policies apply to what E-Mods in your Experience Period.

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What Is An Experience Period?

Experience Modification Factor Calculated The experience period is the time frame from which the Experience Modification Factor (Ex-Mod, or X-Mod, or E-Mod) is calculated. The

James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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