The Experience Mod Equation Looks Complicated - Is it?

I  have been asked often how the Workers  Compensation E-Mod/X-Mod is calculated.  I am also usually asked why a certain company's E-Mod increased so dramatically.   The E-Mod individualizes a company's risk to that company.       

The E-Mod is calculated figured from the following formula:

Actual Primary Losses	+	Ballast Value	+	Weighting Value Times Actual Excess Losses	+	(1 Minus Weighting Value) Times Expected Excess Losses	=	Total A
-------- Expected Primary Losses	+	------- Ballast Value	+	------------------- Weighting Value Times Expected Excess Losses	+	------------------ (1 Minus Weighting Value) Times Expected Excess Losses	=	------- Total B

For the E-Mod, divide Total A by Total B.   I will break down the formula later this week and what employers can do to lower their E-Mod.