Articles

Do You Know Your Ex-Mod?
By Liz Flores, RAR HR Founder & CEO

Ex-mod is an abbreviation for experience modification worksheet. This is the list of claims for each year, the expected claims, the “max out” amount of each claim, and the math, that shows how the experience modification factor was calculated for the year in question.

You request it from your agent, or the agent requests it from the insurance company, and the insurance company usually gets it from the state workers comp bureau, which promulgates the mods in most states.

The workers compensation experience rating plan is designed to either increase or decrease an employer’s workers compensation insurance premium based on its own historical loss experience.

The plan compares an insured’s workers compensation loss experience with the loss experience of other insureds that have comparable operations and payroll classifications, and establishes an individual experience rating modification factor
(a “mod”).

In general, an employer with better-than-average loss experience receives a credit mod (mod of less than 1.00) which reduces its premium. An employer with worse-than-average loss experience receives a debit mod (mod of greater than 1.00),
which increases its premium.

The mod is calculated based on payroll and loss data that insurers report to the workers compensation rating bureau. Reporting inaccurate or incomplete data can lead to an incorrect mod. Obtain a copy of this mod worksheet and review the loss and payroll data for accuracy. Again, your agent or insurance carrier can readily access the worksheet.

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