You can access the Web Experience Mod History circular and Frequently Asked Questions by clicking here.
It is a credit or debit factor based on your business' loss and payroll history.
The insured must be in business at least 2 years and meet one of the following premium criteria:
Credit factors will decrease your premium and debit factors will increase your premium.
Elements of the Experience rating plan formula
Three complete years of experience ending one year prior to the effective date of experience rating.
Click here to see the example.
Contact Carrier 60 days prior to valuation date to review status of all open claims. A change in policy effective dates can impact the experience used in future modifications Review audit information - Payroll and Class codes Use carrier loss control and safety programs to help reduce overall losses.
Mods are revised only when corrected data is submitted by the carrier.
If you are loss free, your mod factor is as low as it can get for your industry type and size.
Generally claim frequency has a larger impact. Multiple claims that total $10,000 will have a larger impact on your mod than a single $10,000 loss.
Modifications are typically calculated once a year and any changes to a claim during the year are included in the next experience rating year.
Loss history follows a business in most cases whether the business was sold or just the assets. Businesses that share more than 50% common ownership are subject to a single modification factor based on their combined data.
For questions concerning open claims:
For questions about class codes and payrolls:
For questions about the rating formula:
The electronic version of an Experience Rating is available on the CDX web site. Please note that CDX web site is for only registered carriers. You may also access electronic experience ratings through the Web Experience Mod product located on our website.
Experience of self-insurers may be included in an experience rating. The data must be submitted to MWCIA in an approved format (ERM-6). Refer to the ERM-6 form found under CARRIERS, AGENTS, or TOOLS and selecting "Forms", at https://www.mwcia.org for instructions and along with a copy of this form.
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.
Questions about Experience Modifications can be discussed with any member of our Underwriting staff by dialing (952) 897-1737 and selecting Option 1 (Underwriting).