Please review the Frequently Asked Questions Circular No. 12-1620 found here. For additional questions, please contact MWCIA's Actuarial Department at (952) 897-1737, option 3, or email at actuarial@mwcia.org .

It is a credit or debit factor based on your business’ loss and payroll history.

Credit factors will decrease your premium and debit factors will increase your premium.

.80  = 20% premium credit
1.20 = 20% premium debit

Elements of the Experience rating plan formula

• ACTUAL LOSS = Total value of claim including reserves.
• PRIMARY LOSS = Reduced amount of claim used in formula.
• EXPECTED LOSS = Amount of claim your business is expected to have based on your business type (class codes) and size (payroll).
• FORMULA FACTORS
  • EXPECTED LOSS RATE = Factor used to determine the amount of losses by class code expected by the formula.
  • D RATIO = Discounts the expected loss total to arrive at the expected primary loss.
  • WEIGHT FACTOR = Percentage of actual losses used in formula.
  • BALLAST FACTOR = Stabilizing element that limits modification fluctuation in the formula.

1. Contact Carrier 60 days prior to valuation date to review status of all open claims.
2. A change in policy effective dates can impact the experience used in future modifications
3. Review audit information - Payroll and Class codes
4. Use carrier loss control and safety programs to help reduce overall losses.

• For questions concerning open claims:
1. Contact your agent
2. Contact the carrier’s claim department
• For questions about class codes and payrolls:
1. Contact your agent
2. Contact carrier’s audit department
• For questions about the rating formula:
1. Email MWCIA at info@mwcia.org
2. MWCIA 952.897.1737

A. Non-Experience Rated Employers

      1. Non-experience rated employers will receive a credit or debit depending on:
            a. the number of years they have been insured with the Assigned Risk Plan, and
            b. the number of lost time claims they have had within the applicable rating period.
      

      2. Depending on the above criteria, the following credits/debits will apply:
            a. Non-experience rated employers who have been insured with the Assigned Risk Plan 
                for the last three consecutive years will be subject to the following schedule based on lost
                time claims during the applicable rating period:
                              0 lost time claims — 33% credit
                              1 lost time claim — no credit or debit
                              2 or more lost time claims — 10% debit
            b. Non-experience rated employers who have not been insured with the Assigned Risk Plan
                for the last three consecutive years will be subject to the following schedule based on lost
                time claims during the applicable rating period:
                              0 lost time claims — 10% credit
                              1 lost time claim — no credit or debit
                              2 or more lost time claims — 10% debit

B. Experience Rated Employers
Will not be subject to Merit Rating.

2011--$179,000
2012--$194,000
2013--$202,500

An employer's rating effective date determines its experience period and generally consists of three completed years of experience ending one year prior to the effective date of the modification.  Experience for each of an employer's policies is included if the policy effective date is:

   (1)  Not less than 21 months before the rating effective date, and

   (2)  Not more than 57 months before the rating effective date.

An employer's experience period cannot contain more than 45 months (3 3/4 years) of data.  The 45 month limitation is a maximum period of time between the expiration date of the most recent policy and the effective date of the oldest policy.

The Experience Period Reference Table displays the policy effective date ranges that will be included in the new experience modification effective date.  Click here to view the table.