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Split Point Question Concerning E-Mods and NCCI Changes


E-Mods Concern – NCCI Split Point

Many of the split point changes by NCCI are starting to hit the radar screens.  I received this question last week from one of our blog readers on split points.

“We have a .98 E-Mod.  Our E-Mod has always been between .90 and 1.0 since we have been in business.

Picture of Man Pointing Both Side Split Point Concept
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Will the new rules concerning E-Mods cause ours to go over 1.0?

 If so, we would look a large chunk of our business as we would no longer be able to bid on government contracts that require a 1.0 or less Mod. “

My answer – Your E-Mod could go over 1.0 without the new NCCI rules if you had a bad claims year.  If not, then from everything I have seen, the answer would be no.

You may want to check my initial post on the NCCI split point updates that I posted a few months ago.  The NCCI rules are not designed to penalize a safe employer.

Picture Woman Consoling Her Troubled Husband Split Point Concern

Your company has a Mod of less than 1.0 which means you are safer than the same company doing the same type of work.  Your safety program is to be commended.

NCCI and the State Rating Bureaus have always structured their E-Mod (X-Mod in California) to penalize the unsafe employers that have many accidents.

Their view is the more accidents a company has over time, the more likely that a few of them will turn into serious claims. I have seen this occur in files for years.

You may want to check out my earlier post on Loss Limitations.  Even if you have one serious accident, you are not penalized that heavily.

If your company has many accidents compared to a similar company, the E-Mod system will increase your premiums over time.

We assist many employers with after-the-fact E-Mod reductions.  The best way to reduce your E-Mod or to keep it under 1.0 is to keep your safety program in place.

I have seen many employers reduce or even eliminate their safety and risk management departments due to this rather rough economy.  This is a sure way to have your Mod increase to an unacceptable level.

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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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