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Discounted Experience Mod – West Virginia Blog Readers Question

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Discounted Experience Mod Likely A Rating Bureau Adjustment

We received this email over the weekend concerning a discounted experience mod. The West Virginia company found the CutCompCosts blog on Google.

Cart With Discounted Experience Mod Vector Graphic
StockUnlimited.com

Our agent informed us that our E-Mod (Experience Modification Factor) for next year was going to be 1.29. When we received our policy quote the E-Mod was 1.03. Can the new E-Mod actually be correct? Did we receive a discounted Experience Mod for some reason? The question was paraphrased for readability as it was much longer. The answers are::

  • Something may have occurred between the time that your agent informed your company of the 1.29 E-Mod and the policy renewal.  This rarely happens. Your E-Mod was tallied six months before your policy renewal date.
  • Your agent and new carrier cannot arbitrarily discount your Mod at will.  I have never seen a premium auditor discount an E-Mod at the final premium audit.
  • NCCI – the rating bureau for WV-is the organization responsible for your E-Mod.
  • You may inquire with NCCI to see what your (and this is important) Final E-Mod for your policy was calculated for the corresponding year.
  • T
    Dollar Discounted Experience Mod Cash
    123rf.com

    he carrier’s premium auditor would adjust the E-Mod back to 1.29 at the final premium audit – usually 30 days after policy expiration.  This increase would cause your final premium bill to be much larger than expected with the lower E-Mod.

  • Carriers and in turn, agents sometimes make inadvertent mistakes.  It is advisable that you check with your agent and NCCI.

It is advisable for employers to always review their policies front to back. This WV employer likely saved itself a large premium bill by reading their WC policy and asking questions. Always read your old expiring policy when looking over your new policy to see if there have been any major changes. Surprises equal $$.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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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