Two Questions on EMR
One of our readers had two good questions on EMR.
I often see you write about the E-Mods or X-Mods in your blog. Is an EMR the same thing as the E-Mod? This was a good question from one of our newsletter readers.
The Workers Compensation Experience Modification Factor has many acronyms such as:
The EMR or Experience Modification Rating is the same as an E-Mod. It is just a different and slightly archaic acronym. The X-Mod usually refers to a California Experience Modification Factor.
The second question was – Can I calculate my own E-Mod anytime during the year without having to wait for NCCI or The Rating Bureau to publish our E-Mod. Yes, you can calculate your E-Mod anytime during a policy year. There are a few great software packages that will allow you to calculate your E-Mod.
The one dangerous thing is that when you calculate your E-Mod right after policy renewal or any other time during the year, the E-Mod may not be that accurate. The Workers Comp rating systems by NCCI and the Rating Bureaus are a delayed system. Your Workers Compensation reserves do not really begin to affect your E-Mod until the policy period after the claim occurred.
A good question to ask your agent and carrier concerns when your Workers Comp E-Mod is calculated and from what data. This will give you a check figure to go against so that you are comparing apples to apples. Do not be surprised if quite a few insurance personnel do not understand the exact data that is used to calculate your E-Mod.
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