Text Resize Aa AaAa

Experience Rating

  • Where can I find information regarding the experience rating split point changes?


    Please review the Frequently Asked Questions Circular No. 12-1620 found here.  For additional questions, please contact MWCIA's Actuarial Department at (952) 897-1737, option 3, or email at actuarial@mwcia.org.

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


    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).
      • 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?


      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?


      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?


      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.

    • Whom may I speak with about a risk's experience modification factor or experience modifications (mods) in general?


      Questions about Experience Modifications can be discussed with any member of our Underwriting staff by dialing (952) 897-1737 and selecting Option 1 (Underwriting).

    • What are the State Per Claim Accident Limitation amounts for 2016, 2017, and 2018 experience modifications?


      • 2016--$216,000
      • 2017--$220,500
      • 2018--$221,500