Blog Reader Question-When Do Accidents Affect MOD

Is it true that what happened in my last Work Comp policy year will not affect the Experience Mod for my current policy year? I had a much better year with accidents in 2007 and a terrible one in 2003.

You are correct. The basic rule is that all Workers Comp policies that started from four years and nine months ago (57 months) up to 24 months ago will affect your Workers Compensation Experience rating.

Your Workers Comp policies have always started on 10/01. So, your upcoming Experience Rating for 10/01/08 - 10/01/09 will be based on all polices that started from 1/1/03 through 10/01/06.

Therefore, your policy for 10/01/08 will be affected by the policy years:

• 10/01/03 - 10/01/04
• 10/01/04 - 10/01/05
• 10/01/06 - 10/01/07

The NCCI has published revised rules on the months that the Experience Period covers. There are many intricacies to the Experience Rating Period. The revised rules make the Experience Rating Period ever more complicated.

The bad year you had will drop off on the 2009 - 2010 policy year.

A question we receive very often will be answered in the next posting that has to do with Experience Rating and Workers Comp reserves.