Experience modification factor (e-mod)
A rating factor that compares an eligible employer's loss experience with expected loss experience for similarly classified employers.
Experience rating adjusts workers' compensation pricing for eligible employers by comparing actual loss experience with expected results for comparable classifications and exposure. The resulting modification factor can increase, decrease, or leave unchanged the premium component to which it applies.
NCCI explains that its Experience Rating Plan uses employer payroll and loss information and produces a modification factor for use in rating. Rules, eligibility thresholds, and administration differ in independent-bureau and monopolistic jurisdictions.
Where this definition comes from
Glossary entries are anchored to a state agency, statute, board, commission, or recognized workers' compensation authority rather than a generalized summary.
More terms
- Additional insured
- Agricultural/farm labor exclusion
- Assigned risk pool / residual market
- Casual employment
- CE-200 (New York)
- Certificate holder
- Certificate of election
- Certificate of insurance (COI)
- Civil penalty (uninsured employer)
- Class code
- Competitive state fund
- Construction vs non-construction classification