Term Of The Day – Ballast Value
The Ballast Value comes from an old sailing term. Sailors were known to put large rocks in the bottom of their ships to enhance stabilization.
In general, the definition of Ballast is something, such as a weight, added to give stability , usually a ship. It is an old English word. In Workers Compensation, it is the factor of the experience rating formula that prevents the x-mod from shifting too high or too low. As expected losses increase the value increases linearly not necessarily proportionally.
The ballast variable in the E-Mod equation is G
The ballast is not a penalty. It is more of a safety net against massive E-Mod or X-Mod spikes.
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