What is it? Experience rating assesses whether your company’s claims are greater than or less than average by comparing your company’s payroll and claims history with other California businesses in the same industry. The Workers’ Compensation Insurance Rating Bureau uses your recent policy history to compute the Ex Mod for your business. This is a percentage factor that affects your current workers’ compensation premium. If your claims are less than average, your premium is credited and decreased. If your business has higher losses than the rest of your industry, your premium is debited and increased. Every business starts with an Ex Mod Rate of 1.00. Values less than 1.00 reflect a better than average claims history, while values over 1.00 reflect a worse than average claims history. Who is assigned an Ex Mod? There is a minimum premium threshold, as set by the Workers’ Compensation Insurance Rating Bureau. Once a company achieves that threshold, they are qualified for the Ex Mod Rating. The plan is mandatory for all qualified businesses within California.qualified for the Ex Mod Rating. The plan is mandatory for all qualified businesses within California.
What data is used for the Ex Mod Rating?
The Bureau refers to your policy history beginning 4 years and 9 months prior to and terminating 1 year and 9 months prior to the inception date of your policy. The WCIRB looks at the premium that you paid, the class codes that you used, the frequency of claims, types of claims, and amount paid and/or reserved on your claims during that three year period. |
