How do I read my NCCI Experience MOD?

You just received your MOD sheet and maybe it’s up, maybe it’s down, or maybe it didn’t change at all.  Just about everyone knows where to find the final rating, but since this post is MOD Sheet 101, I’ve shown an illustration below.

 

Whatever the final number, you want to understand a few key pieces of information from the experience rating worksheet.

Regardless of good or bad, we’re only trying to determine now, what information are they using to determine my rating.  Since I’m only going into the basics of the MOD in this post, we’re not going to look at the details like primary losses, ballast values, etc.

First, what policy years are they referring to?  Your experience MOD typically reflects three policy years worth of data.  There will be times when your MOD sheet will have more than three years worth of data (you changed your renewal date, acquired another company, involved in an OCIP or wrap-up, and more, but this is only an intro into reading the MOD).

Let’s start from the top down!

1. Each of the states you had payroll in should be listed for each year you had payroll in that state.  Rules vary from state to state.  If you have a questions with states and classifications, please ask as there are too many variables to summarize!

2. The next section you’ll see is the classcode and the corresponding payrolls.  (Yes, skipped ELR and D-Ratio)

3. The next section is claim data (or claim number), the Injury Code, and weather or not the claim is open or closed.  (Yes, for the sake of simplicity we’re skipping the expected losses and expected primary losses)

Claim Data: This is your claim number.

Injury Code: Your options here are 1-9

1= Death

2= Permanent Total Disability

3= Major Permanent Partial Disability

4= Minor Permanent Partial Disability

5= Temporary Total or Temporary Partial Disability

6= Medical Only

7= Contract Medical or Hospital Allowed

8= Compromised Death (California Only)

9= Permanent Partial Disability

O F: Quite simply, this column shows if the claim is OPEN or CLOSED.  WAIT!!!  My example has an asterisk!!!!  Yes, the asterisk as shown in the example means you had multiple small claims with the same injury code.  (At the time of this writing a “small” claim is any claim under $5,000.  The rules are changing here with regards to what defines a small claim, but for now, anything under $5,000 is small).  You’ll also see that because there are multiple claims here, the number of claims are listed in the Claim Data section rather than a claim number.  In this instance, there were two small claims and the total for both small claims was $1,459.