EMods XMods Are Available Much Earlier Than At Renewal
The EMods XMods are Available earlier than the policy renewal date. There seems to be a secretive process on EMod publishing dates. Most companies wait until their agent, NCCI, or State Rating Bureau furnishes a copy. Quite often, the E-Mods (X-Mods in California) are available much earlier before your renewal date or E-Mod publication date.
Most Mods can be manually calculated six months before the Workers Comp policy renewal date and are available from the rating bureaus 3 – 5 months before your company’s renewal date. Calculating a Mod six months before it affects your policy can be helpful in the budgeting process. CFO’s especially appreciate knowing at least if their Mod is going to increase or decrease significantly.
A word of caution – each state may have not yet approved the rating values if a Mod is calculated this early. I have even seen states add in rating values after the policy renewal date. I always recommend to our clients to wait until their E-Mod is calculated and obtain a copy of it ASAP.
We also can monitor when the new EMods are available and pull the Mod sheets immediately. There is no exact date when the Mods are originally published. I guarantee you will not see the Mod when it is originally published no matter the rating bureau.
There are software packages on the market that will calculate Mods. However, the old saying of garbage in – garbage out applies to using E-Mod software. You have to know which claims and what values will impact your Mod. This can be a time-consuming and confusing process.
If you take a look at an NCCI or State Rating Bureau Experience Modification Factor worksheets, you will see rows and columns of data that may not necessarily make sense. Companies that operate in many jurisdictions and/or have many classification codes will usually have the most complicated EMod Worksheets.
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