So what if you don’t have an experience rating? In order to qualify for a rating with NCCI, you need to meet certain criteria. These qualifications can and do vary by state, but you first need to meet the states minimum premium level for experience rating. If your premium was $6750 but that was including a MOD rating of 1.5, you don’t actually qualify for a MOD since your standard or manual premium is actually only $4,500 if your state had a $5,000 manual minimum premium limit to qualify. In this instance, having a manual minimum premium below the eligibility requirements actually saves you from a debit experience rating!
Experience Rating Eligibility in Maryland.
A risk is eligible for intrastate experience rating when the payrolls or other exposures developed in the last year or last two years of the experience period produced a premium of at least $10,000. If more than two years, an average annual premium of at least $5,000 is required.
As I mentioned, the eligibility amounts vary by state. As of 10/4/2017 the NCCI requirements are listed below.
A risk qualifies for experience rating when its subject premium, developed in its experience period, meets or exceeds the minimum eligibility amount shown in the State Table of Subject Premium Eligibility Amounts in Rule 2-A-2-c. Refer to Rule 2-E-1 to determine a risk’s experience period.
|
State Table of Subject Premium Eligibility Amounts
| State | Rating Effective Date | Column A ($) | Column B ($) |
|---|---|---|---|
| AK | 7/1/17 and after | 5,000 | 2,500 |
| 6/30/17 and before | 5,000 | 2,500 | |
| AL | 9/1/17 and after | 10,000 | 5,000 |
| 8/31/17 and before | 10,000 | 5,000 | |
| AR | 1/1/18 and after | 8,000 | 4,000 |
| 12/31/17 and before | 8,000 | 4,000 | |
| AZ | 7/1/17 and after | 6,000 | 3,000 |
| 6/30/17 and before | 6,000 | 3,000 | |
| CO | 7/1/17 and after | 8,500 | 4,250 |
| 6/30/17 and before | 8,000 | 4,000 | |
| CT | 7/1/17 and after | 11,500 | 5,750 |
| 6/30/17 and before | 11,000 | 5,500 | |
| DC | 5/1/18 and after | 7,000 | 3,500 |
| 4/30/18 and before | 7,000 | 3,500 | |
| FL | 7/1/17 and after | 10,500 | 5,250 |
| 6/30/17 and before | 10,000 | 5,000 | |
| GA | 9/1/17 and after | 10,500 | 5,250 |
| 8/31/17 and before | 10,000 | 5,000 | |
| HI | 7/1/17 and after | 5,000 | 2,500 |
| 6/30/17 and before | 5,000 | 2,500 | |
| IA | 7/1/17 and after | 8,000 | 4,000 |
| 6/30/17 and before | 7,500 | 3,750 | |
| ID | 7/1/17 and after | 6,000 | 3,000 |
| 6/30/17 and before | 6,000 | 3,000 | |
| IL | 7/1/17 and after | 10,500 | 5,250 |
| 6/30/17 and before | 10,000 | 5,000 | |
| IN | 7/1/17 and after | 5,000 | 2,500 |
| 6/30/17 and before | 5,000 | 2,500 | |
| KS | 7/1/17 and after | 8,000 | 4,000 |
| 1/1/16 to 6/30/17 | 6,000 | 3,000 | |
| 12/31/15 and before | 4,500 | 2,250 | |
| KY | 4/1/18 and after | 10,500 | 5,250 |
| 3/31/18 and before | 10,000 | 5,000 | |
| LA | 11/1/17 and after | 10,500 | 5,250 |
| 10/31/17 and before | 10,000 | 5,000 | |
| MD | 7/1/17 and after | 10,000 | 5,000 |
| 6/30/17 and before | 10,000 | 5,000 | |
| ME | 10/1/17 and after | 9,500 | 4,750 |
| 9/30/17 and before | 9,000 | 4,500 | |
| MO | 7/1/17 and after | 7,000 | 3,500 |
| 6/30/17 and before | 7,000 | 3,500 | |
| MS | 9/1/17 and after | 9,000 | 4,500 |
| 8/31/17 and before | 9,000 | 4,500 | |
| MT | 7/1/16 and after | 10,000 | 5,000 |
| 6/30/16 and before | 5,000 | 2,500 | |
| NC | 4/1/16 and after | 10,000 | 5,000 |
| 3/31/16 and before | 8,000 | 4,000 | |
| NE | 8/1/17 and after | 6,000 | 3,000 |
| 7/31/17 and before | 6,000 | 3,000 | |
| NH | 7/1/17 and after | 11,500 | 5,750 |
| 6/30/17 and before | 11,000 | 5,500 | |
| NM | 7/1/17 and after | 9,000 | 4,500 |
| 6/30/17 and before | 9,000 | 4,500 | |
| NV | 9/1/17 and after | 6,000 | 3,000 |
| 8/31/17 and before | 6,000 | 3,000 | |
| OK | 7/1/17 and after | 10,500 | 5,250 |
| 6/30/17 and before | 10,000 | 5,000 | |
| OR | 7/1/17 and after | 5,000 | 2,500 |
| 6/30/17 and before | 5,000 | 2,500 | |
| RI | 2/1/18 and after | 10,500 | 5,250 |
| 1/31/18 and before | 10,000 | 5,000 | |
| SC | 3/1/18 and after | 9,000 | 4,500 |
| 2/28/18 and before | 9,000 | 4,500 | |
| SD | 1/1/18 and after | 8,000 | 4,000 |
| 12/31/17 and before | 7,500 | 3,750 | |
| TN | 9/1/17 and after | 9,000 | 4,500 |
| 8/31/17 and before | 9,000 | 4,500 | |
| UT | 6/1/18 and after | 7,000 | 3,500 |
| 5/31/18 and before | 7,000 | 3,500 | |
| VA | 10/1/17 and after | 7,000 | 3,500 |
| 9/30/17 and before | 7,000 | 3,500 | |
| VT | 10/1/17 and after | 8,000 | 4,000 |
| 9/30/17 and before | 8,000 | 4,000 | |
| WV | 5/1/18 and after | 9,000 | 4,500 |
| 7/1/08 to 4/30/18 | 9,000 | 4,500 |
Experience Rating Plan Manual should be referenced for the latest approved