There was a time when a high workers compensation experience mod could be reduced to 1.00 simply be creating a new corporation and transferring ownership to it. Since the new owner had no prior experience, the mod would revert to 1.00, despite the fact that the exact same ownership, management, workers, and processes were in…
Our “Ask an Expert” service got this question recently: “I have a customer that has not had a workers comp loss in over 8 years. How do you explain that his mod went from .91 to .93? Also, how is the ‘stabilizing value’ determined on the mod worksheet and what does it represent?” Take a…
In your agency, I bet it is common practice to review renewals 6-8 months in advance, right? Right! (he says sarcastically) Well, if the workers compensation is experience rated, there are some things that may need attention that far in advance. Such vigilance may save your insured BIG bucks. Included in this article is a…
One of the few email discussion lists I participate in is a Yahoo! Groups list called “RiskList.” Recently, the topic of discussion was illegal aliens and workers compensation. Some of issues discussed include whether or not they’re covered under workers compensation laws and what kind of impact they may be having on loss experience.
Sometimes errors in the mod occur, and these errors can cost the employer money through increased premium costs. Therefore it’s important to go “looking for trouble” to know how to identify such errors, and how to get them corrected.
If you are meeting with a prospective client, ask for a copy of his most recent experience rating worksheet. Performing the following quick analyses can give you good insight into the client’s operations. Also, if you are reviewing an existing client’s renewal, the following three quick analyses will help you stay informed about the client’s…
Numerous questions arrive at the VU about workers compensation modifications. Be sure to use the VU search function to find several articles on this subject, including calculations and correcting errors. Here are two more:
