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Experience Rating

  • Whom should I contact to ask about a risk's experience modification factor or experience modifications (mods) in general?

    FAQ

    Questions about Experience Modifications can be sent to our Experience Modification Department by emailing unitstat@mwcia.org.


  • Who is eligible?

    FAQ

    Effective 1/1/2024: The insured must be in business at least 2 years and meet one of the following premium criteria:

    • $14,000 unmodified premium in the 1st year of the experience rating period or,
    • An average of $14,000 unmodified premium in the first 2 years of the experience rating period or, 
    • If an insured has more than 2 years of experience, they must develop an average annual unmodified premium of $7,000 in the experience rating period.


  • What are the State Per Claim Accident Limitation amounts for Multiple Claims: 2019, 2020, 2021, 2022, and 2023 experience modifications?

    FAQ

    1. 2019--$442,000

    2. 2020--$432,000

    3. 2021--$445,000

    4. 2022--$461,000

    5. 2023--$485,000


  • What are the State Per Claim Accident Limitation amounts for a Single Claim: 2019, 2020, 2021, 2022, and 2023 experience modifications?

    FAQ

    • 2019--$221,000
    • 2020--$216,000
    • 2021--$222,500
    • 2022--$230,500
    • 2023--$242,500


  • What are the elements in the Experience rating plan formula?

    FAQ

    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.


    • What policy data do you use?

      FAQ

      Three complete years of experience ending one year prior to the effective date of experience rating.

      Click here to see the example.


    • Are Mods revised if a claim closes?

      FAQ

      Modifications are typically calculated once a year and any changes to a claim during the year are included in the next experience rating year.


    • How do we get the electronic version of an Experience Rating?

      FAQ

      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.