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EMod (XMod) Can I Obtain One Before My Agent Provides It Every Year?

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My EMod (XMod) – When Can You Obtain It?

How do I obtain my Emod (Experience Modification Factor0?  This question was emailed from a  medium-sized company from Kansas.  

Picture Of Man EMod Calculation
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We receive this question regarding EMods often from employers that wish to budget for their upcoming Workers Comp policy year.    A large number of employers also want to avoid the last-minute E-Mod (X-Mod) surprise.

The earliest an EMod can be promulgated d (calculated) is 6 months before the policy ends in most states.   Your loss run actually has the necessary data to calculate the E-Mod.    However, there is a very large caveat here.

Selecting the correct levels of the proper variables from the loss runs is beyond critical.  The Rating  Bureau’s (NCCI, WCIRB) EMod formula is very specific on the data needed to end up with the correct  E-Mod.    Your company may need a consultant to calculate the E-Mod before it is produced by the rating bureau.

Man Figuring EMod Calculation
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Your company’s time may be better spent earlier in the year obtaining your loss runs and then reviewing the outstanding reserve values.   Your company will usually have six months after your new policy renews to review your loss runs for next years’ E-Mod.

There are numerous articles in this blog concerning loss run review schedules.   You should check those out in detail by searching for the word “schedule” in the search box.

This timetable for loss run review may sound a bit confusing.   The main thing to remember is to get started on next years’ E-mod as soon as possible.    Safety is always the best way to reduce your E-Mod.

As a last resort,  your company can always request a copy of your E-Mod (X-Mod from your respective rating bureau.   The lion’s share of those will be provided by the NCCI or WCIRB.  You may Google those terms to find the proper contact information.    If your agent is timely about providing your quotes then you will likely receive the E-Mod not long after it is produced by the rating bureau.

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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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