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Work Comp Reserves – Why is June 30th Most Crucial Day?


Work Comp Reserves And The Unit Statistical Date

Why do Work Comp reserves become so crucial on June 30th of each year?  Please follow along as there are a few steps to this assumption / reality.

calendar pen and eye glass work comp reserves emblem from website
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As mentioned often in this blog, the most workers comp policies renew on January 1st of each year.   If your company or organization renews  on January 1st, you should consider moving that renewal date to later in January.

Save your company or organization time as a major time waster occurs each year with December reserve reviews  on a January 1 renewal date.   You are wasting your time unless you are planning six months ahead.

The Unit Statistical Date occurs when your Total Incurred (paid + work comp reserves) pegs to your Experience Mod.  This happens 6 months after policy expiration, not upon policy expiry.

Hand Illustrating Work Comp Reserves Analytics Concept

A January 1st renewal date usually guarantees a Unit Statistical Date of  July 1st.   On June 30th at midnight, your company has what it has for Total Incurred, with very few exceptions.    Most companies receive their new E-Mod (X-Mod) 90 – 120 days after the Unit Statistical Date directly from the Rating Bureau or from their agent/broker.

One should study the E-Mod  or X-Mod Rating Sheets very closely upon receipt as the Total Incurred figures are included in those sheets.

The Work Comp reserves should be negotiated with the insurance carrier before the Unit Statistical Date if possible.  At the close of business today, all policies with a January 1, 2017 renewal date will have their 2017 E-Mod pegged by the respective reserves.

Have you looked over your loss runs?  If not, it is never too late to start analyzing your  Paid, Reserves, and Total Incurred for each claim.  Monitoring work comp reserves can be time consuming yet well worth the effort.

Also Read: What Is A Guaranteed Cost Program In Workers Compensation?

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

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