Wait, I don’t have an Experience MOD?

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.

2. State Subject Premium Eligibility Amounts

(Exceptions: MA, TX)

(Additional Rules: OR)

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.

a. A risk qualifies for experience rating if its data within the most recent 24 months of the experience period develops a subject premium of at least the amount shown in Column A.
b. A risk may not qualify according to Rule 2-A-2-a. If it has more than the amount of experience referenced in Rule 2-A-2-a, then to qualify for experience rating the risk must develop an average annual subject premium of at least the amount shown in Column B. Refer to Rule 2-A-3 to determine average annual subject premium.
c. A risk’s rating effective date determines the applicable Column A and Column B subject premium eligibility amounts required to qualify for experience rating. Refer to Rule 2-B for rating effective date determination.

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

 

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