The Experience Rating Plan is a state-mandated program that uses an individual employer's actual incurred loss experience and compares it to average losses of similarly classified businesses. The resulting modification factor is used to adjust workers compensation manual rates to reflect the expected loss experience of an insured. NCCI identifies and collects the employer's payroll and loss information, develops the rating, and distributes it to the insurer.
NCCI's Experience Rating Production Service provides continuous monitoring of an individual employer's rating for possible revisions. Ratings are often revised for reasons beyond the control and knowledge of the current insurer due to subrogation, classification inspections, formula changes, or reporting error corrections. Whenever changes in ratings occur, NCCI monitors these events, makes the necessary adjustments, and forwards the revised ratings to you at no additional cost. This maintenance of an Experience Rating is performed by NCCI for the life of that rating.