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Private and Public Employers– Pending Unit Stat Date

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Upcoming Important Date – Pending Unit Stat Date

The pending Unit Stat Date creates a deadline that private and public employers should mark on their calendars.

A large percentage of private employers and  most public entities renew on July 1st. In most policies, the Experience Modification Factor, better known as E-Mod or X-mod, is usually calculated six months before policy inception.

Vector Graphic Of Two Employers Pending Unit Stat Date Shaking Hands
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This date is known as your Unit Statistical Date or Unit Stat Date.

The Unit Stat date for the aforementioned employers is January 1, 2015.

The Total Incurred figures applicable to your  July 1st, 2015 policy will peg on New Years Day, 2015.

I may not necessarily agree with this structure, but it is the system we have to work with to have WC policies.   As Charles Givens said in Super Self, “If you want to win in their ballpark, you have to play by their rules.”

Your company or public entity has seven weeks to correct any reserves on your applicable  outstanding Workers Comp files.   As mentioned often in this blog,  Total Incurred = Paid + Outstanding Reserves.

The Total Incurred figure is used as one of the main inputs to your E-Mod calculation.  Having online access to your claims and loss runs is critical in this process.

Picture Of Man Upcoming Important Date Calculating
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If you have your company’s loss runs and want to begin a loss run analysis, unfortunately there is no one guide on how to accomplish that task.   Each WC file is to its own.  There is no Step 1, Step 2, Step 3, etc. method.

Calling attention to certain files on your loss runs may actually end up increasing your E-Mod.  I have attempted to write a one-size-fits-all loss run analysis guide.  I have read a few other guides that fall flat.

The best advice that I can give is to look for the outliers or the claims that are obviously over-reserved or have some other attribute that stands out upon a loss run analysis and review.

The main idea is to at least begin your analysis but tread very lightly.  A large % of employers do not even obtain their loss runs and look over them.

If you have to request a paper loss run, you should do that today if your policy renewal is July 1st.  In fact, even if it is not on July 1st, the employers that pay attention to their loss runs seem to have lower E-Mods than companies that do nothing with their loss runs.

There are numerous articles on X-Mod or E-Mod reductions and loss run analysis.  Use the search box to find them in the 1400 articles on this blog.

Some of the terms in this article are highlighted that will take you to some of the articles.   Feel free to print out any of the articles or reference them in your own articles with a backlink.

Go ahead and mark the pending Unit State Date on your calendars if you are a public employer.

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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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