Reserve Review Action Plan
I had posted often over the last few weeks concerning claimx`s review for insureds with a January 1, 2011 renewal date. I even included a schedule of sorts on how to proceed on a Workers Comp reserve review. I used the 1/1/2011 policy renewal date as an example. One of the main things to remember is that you are looking to lower your E-Mod for next year. For a 1/1/2011 policy renewal date your E-Mod is calculated at the close of business of 6/30/11 for your 2012 policy.
If your policy does not renew on January 1, then add the difference onto the dates I have given you in this and past posts. For instance, if you have a policy renewal date of 4/1/11, then just add three months onto the dates I have given you in the earlier posts. If you have a January 1st renewal date and you have not started your reserve review, then you are definitely behind schedule.
If you are on schedule, the next step is contacting the claims department and in particular your Workers Compensation adjuster to review the claims in which you had reserve questions. As I said in my last post on this subject, knowing which claims to review and which ones to leave alone can be critical. Sometimes, a full formal review of your reserves with an adjuster may result in an increase to your reserves and E-Mod.
One of the unwritten ground rules is to not call the adjuster and say lower my reserves, they are just too high. The best method of contact is by email for documentation and it will allow the adjuster to look everything over and get back with you.
If you have any questions on this info, please feel free to call me at (800) 813-1386 or email me at [email protected]
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