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  "title": "ABCs of Experience Rating",
  "publisher": "National Council on Compensation Insurance (NCCI)",
  "url": "https://www.ncci.com/articles/documents/uw_abc_exp_rating.pdf",
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      "text": "Under manual rating, all employers are grouped according to their business operation or classification, and an employer is assigned to a classification to ensure that the rates reflect the costs of all employers with similar characteristics."
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      "text": "The rates determined for manual rating are averages reflecting the normal conditions found in each classification."
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      "text": "The rate, which is approved by the state for each classification, is applied per $100 of payroll; each $100 of payroll is multiplied by the rate to arrive at the premium for each classification; summing the premium for the classifications yields the initial total premium; and the modification is then applied to arrive at the modified premium."
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      "text": "Experience rating compares the experience of individual employers with the average employer in the same classification, using individual payroll and loss records, and may result in an increase, decrease, or no change in premium."
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      "text": "The modification applied to an employer's policy is either a unity (1.00) factor, a credit mod (lower than 1.00), or a debit mod (higher than 1.00)."
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      "text": "An employer qualifies for a mod if the subject premium meets a premium eligibility point, and eligibility criteria differ by state."
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      "text": "The experience period is generally based on three years of payroll and loss data, but could range from less than 12 months of data up to 45 months of data."
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      "text": "The payroll and claim or loss information used to calculate the mod comes from unit statistical reports that insurance providers are required to file with NCCI for each policy under NCCI's Statistical Plan."
    },
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      "text": "A contingent mod is issued when NCCI is expecting audited payroll and/or loss information but has not received it, and the mod is revised once the audited information arrives."
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      "text": "As of this publication, 39 jurisdictions have approved and authorized the use of the Plan."
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      "text": "The Plan does not apply in California, Delaware, Michigan, New Jersey, New York, or Pennsylvania, nor does it apply in the four monopolistic states (North Dakota, Ohio, Washington, and Wyoming) that administer their own plans and rates."
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      "text": "The Plan applies in Indiana, Massachusetts, and North Carolina, but the independent rating organizations in these three states are responsible for producing their own intrastate mods; the independent rating organizations in Minnesota and Wisconsin permit combination with states that have approved the Plan for interstate experience rating, and those two states participate only if the employer has exposure in two or more participating states within the experience period."
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      "text": "Where an employer has exposure in a participating state and a non-participating state, separate intrastate mods are produced by separate organizations; the worked example uses Florida, where NCCI develops the intrastate mod, and Pennsylvania, where the Pennsylvania bureau develops its own."
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      "text": "On the NCCI Experience Rating Worksheet, payroll is described as the exposure, and the Expected Loss Rate is the amount of expected losses for the classification for each $100 of payroll."
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  "citation": {
    "text": "National Council on Compensation Insurance (NCCI). \"ABCs of Experience Rating.\" unknown. https://www.ncci.com/articles/documents/uw_abc_exp_rating.pdf (retrieved 2026-08-31).",
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