What Does Wt Represent on Experience Modification Sheets? Your company’s Experience Modification Sheets just arrived from the rating bureau or you just downloaded them. Experience Modification worksheets is also the correct term for the sheets. If you look at your sheets more closely, NCCI and the other rating
Premium Audit Statement is One Piece of the Puzzle The Premium Audit Statement (PAS) or bill is one of the documents that will show the final numbers for any policy year. What is the other document to match to the Premium Audit Statement to make sure the final numbers are
WCIRB ‘s New Mod Formula – Small Employers Must Enact Safety Programs Now WCRIB’s new mod formula will heavy affect small employers with a less than stellar safety record. Last Friday, I briefly covered California’s WCIRB and the change in the X-Mod Calculation effective 1/1/2013. I thought I would
The Big Falsehoods Of Workers Compensation Experience Rating Systems The Big Falsehoods of Workers Compensation experience rating system involve advisory rate accuracy. I recently received an email from a regional insurance company reporting that a certain state had an 8% reduction in the advisory rates also known as loss costs.
Reinsurance Market No Longer Soft The reinsurance/excess Insurance Market has started to change from a commodity marketplace. The excess insurance market is usually the bellwether for the rest of the marketplaces. Reinsurance/Excess Insurance is basically defined as a risk management technique. The employer will purchase this type of insurance to
Workers Comp Premiums – Type of Tax Yes, Workers Comp premiums could be thought of as a tax of sorts. The similarities between taxes and Workers Compensation were spelled out in a previous article. Unemployment insurance (UI), which can be viewed as a tax, is even more similar.
California Employer Question A California employer emailed in this question last weekend. “We are a medium-sized employer (dry cleaner) in central California. Our Experience Modification Factor increased significantly over the last few years. The increase seems to have resulted in our Workers Comp premiums rising significantly. What is
Term Of The Day – Excess Losses In the Experience Modification Factor formula, Excess Losses are the amount of any single claim that is more than the cut-off point for inclusion as a primary loss. The NCCI experience rating formula uses the threshold of $15,000. The threshold varies in the formulas
Experience Modification Factor Calculated The experience period is the time frame from which the Experience Modification Factor (Ex-Mod, or X-Mod, or E-Mod) is calculated. The usual period is from the policies four years ago to two years ago. For instance if you have a policy that starts on 1/1/2010, your
WCIRB Free Rating Sheets Free Experience Rating Sheets are now offered by WCIRB to employers. As NCCI has done for years, California’s WCIRB (Workers Compensation Insurance Rating Bureau) has allowed employers access to their rating bureau file once per year for free. I was going to re-write their press release,
Accident Year Experience The accident year experience differs from other types of experience measurement comparisons. The statistical matching of all losses occurring (regardless of when the losses are reported) during a given 12-month period of time, with all premium earned (regardless of when the premium was written) during the same
Experience Period Does Not Operate In The Present The Experience Period is the interval in which loss and exposure data is used to calculate the experience modification factor for an employer. In normal circumstances, the time period is 3 years and begins 4 years in the past. However, if the
Term Of The Day – Excess Loss The Workers Comp term of the day is excess loss. It is the amount of a Workers Compensation claim that exceeds the Primary Loss – usually $5,000. The Excess Loss does not affect the EMR/E-Mod/X-Mod as much as the Primary Loss on a
Primary Loss – Term Of The Day The primary loss part of a claim is one of the most important terms involving the premiums your company pays for Workers Comp insurance. It is the part of any loss that weighs very heavily on your E-Mod or X-Mod. In almost all
Split Points – A Small Claim – Part III Split points represent the line between as the Primary and Excess Loss parts of a claim. Well, we have covered how a small claim is not really such a tiny claim after all. The one thing that we often see in workers
A Small Workers Comp Claim Is Still Expensive The term small workers comp claim is such a nefarious item. I have heard that term often over the past 27 years. The term should be a smaller part of the risk of a larger loss. Please note this is an older post
