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.
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.
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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