My Upcoming Mod Calculation Presentation
The NCCI NCRB new Mod calculation are the subject of my upcoming presentation.

I will be presenting on Tuesday March 5th for the Charlotte Association of Insurance Professionals on the new E-Mod (Experience Modification Factor) calculation. All North Carolina Workers Compensation policies that are renewed after 4/1/2013 will see these changes.
I had written on the possible implications of the new Mod calculations last year. The new circulation letter concerning E-mod changes from the North Carolina Rate Bureau is contained below.
November 8, 2011
CIRCULAR LETTER TO ALL MEMBER COMPANIES
Re: Workers Compensation Insurance
NCCI Item E-1402 – Experience Rating Plan Changes
The North Carolina Rate Bureau recently filed and the North Carolina Commissioner of Insurance
approved changes to NCCI’s Experience Rating Plan Manual for Workers Compensation and
Employers Liability Insurance based on information shown in the above referenced NCCI item
filing. A copy of this filing is attached.

The Experience Rating Plan changes are designed to:
1. Update the Primary/Excess Split point;
2. Revise the Maximum Debit Modification formula; and
3. Revise NCCI’s Experience Rating Plan Manual for Workers Compensation and
Employers Liability Insurance.
The proposal would update the Primary/Excess Split point to $10,000 as of April 1, 2013, to $13,500
as of April 1, 2014, and to an increased, indexed value as of April 1, 2015. An increase in this split
point will make the Experience Rating Plan more responsive to small losses.
The Maximum Debit Modification formula would change, allowing even the smallest experience rated
risks to have a maximum debit modification of 1.10 compared to the 1.00 that applies today.
The attached Informational Exhibits provide preliminary details regarding the nature of these changes.
For the purpose of comparison, North Carolina’s G value as of 4/1/2012 is 9.95 (or equivalently, a
State Average Claim Cost or SACC of $9,950).
Additional information, including details on required changes to rating variables, will be included with
the respective rate filings.
Contact the Information Center at 919-582-1056 or via email at [email protected], if you require
additional information
Sincerely,
Sue Taylor
Director of Insurance Operations
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