New X-Mod System Reduces Effect of One Large Claim

| posted in Blog

One of the biggest complaints in workers’ comp – that one large claim can skew an employer’s X-Mod – is about to finally be addressed in California. The Workers’ Compensation Insurance Rating Bureau’s “split-point” experience rating system, in which an employer’s actual workers’ comp losses are divided into actual primary losses and actual excess losses, will be overhauled for 2017. The Bureau will do so by replacing the current static $7,000 split point for all industries and employer sizes with a variable split-point system. This change is expected to limit the impact of one large claim on an employer’s (particularly…
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New System to Reduce Effects of a Single Claim on Small Employers’ Premium

| posted in Blog

New rules approved by the state insurance commissioner, Dave Jones, will reduce the effects of a single claim on small and mid-sized employers’ workers’ comp premiums, addressing an issue that has long haunted many California companies. The changes approved for the Experience Rating Plan will introduce a new formula for gauging an employer’s expected and excess losses for claims. It will replace the current “split-point” system that has been blamed for being too volatile and punishing small employers for incurring a single workers’ comp claim. The current split The current system calculates all losses up to a $7,000 split point…
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