What is an experienced modification, and how does it affect my Workers Compensation premium?
• The experienced rating plan is administered by the National Council Compensation Insurance (NCCI). It is designed to allow discounts for good experience for employers who generate $5000 or more of average premium for three consecutive years. As they develop loss experience which may be better or worse than the average an experienced modification can be generated and applied by the NCCI to increase or decrease the amount of manual premium that an employer would pay. The NCCI uses past experience of the employer as a basis for projecting future losses. Three years of audited premium losses are used to determine your factor, not counting the current year.
