North Carolina Experience Modification Calculation |
| This application is intended to be used as a tool to help you understand workers compensation experience rating calculations and the impact the experience modification can have on an employer's workers compensation insurance costs. |
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| Experience rating uses class code, payroll and loss data developed during past policy years (normally a three-year experience period) to forecast future workers compensation insurance costs. The experience rating process, mandatory for all employers that develop a minimum premium threshold, provides an employer with financial incentive to provide a safe workplace that will, in turn reduce the final cost of workers compensation insurance. The calculation of the experience modification will result in either a unity (1.00) factor, a credit modification or a debit modification being applied to the employers policy. A credit modification is lower than 1.00 and decreases the amount of premium paid. A debit modification is greater than 1.00 and increases the amount of premium paid. |
| This application will help you to estimate North Carolina intrastate experience modifications to better plan future workers compensation insurance costs. While this program cannot develop the definitive experience modification and is not intended to cover all rules and exceptions found in the Experience Rating Plan Manual, it does calculate experience modifications based on loss and payroll information that you enter. This application also allows for the calculation of "what if" scenarios by giving you the ability to adjust loss and payroll information. |
| Please reference the instructions for more detailed information. |