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Workers Comp Reserve Reduction Review Plan


Reserve Reduction Plan For E-Mods

Workers Comp reserve reduction review plans need to be on schedule.   I have devised a formula for calculating when your reserve or E-Mod reduction plan should begin overall.

As I posted last week, you should start three months BEFORE your Unit Stat date. Sound confusing? – Check out the formula.

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  • Date that your reserve hit your NEXT YEAR’s E-Mod = Your renewal date + six months. For example, if 3/1/11 is your renewal date, your reserves tab to your E-Mod on 9/1/11.
  • Preferable Date to start your E-Mod reduction plan – Your renewal date + 2 months Preferably, you would want to start your reduction plan by 5/1/11. Why? You cannot just call up your claims adjuster and say reduce these reserves today. It just does not work that way.
  • Latest time to start your E-Mod reduction plan – Your renewal date + 3 months You would need to start your E-Mod reduction plan on 6/1/11 at the latest.
  • Larger reserves take longer –  a $300,000 file takes longer because the file has to be reviewed by the adjuster, supervisor, claims manager, and possibly the claims VP.

If your company is past the three month barrier, you may need to bring in outside non-agent expert help to get your E-Mods reduced. We have been able to reduce reserves with only two weeks before the Unit Stat date.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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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