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How does a business qualify for an experience modification?

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How does a business qualify for an experience modification?

Question: 
How does a business qualify for an experience modification?
Answer: 

A business qualifies for an experience modification if the amount produced by applying the approved expected loss rates (shown in Table I of the California Workers' Compensation Experience Rating Plan—1995)  to the total remuneration that would be used in the experience rating calculation is greater than or equal to the experience rating eligibility threshold. The experience rating eligibility threshold is adjusted each year to reflect wage inflation and changes in the average expected loss rate. The experience rating eligibility threshold is specified each year in Section III, Rule 1 of the California Workers' Compensation Experience Rating Plan—1995. Both the current experience rating eligibility threshold and the approved expected loss rates can be viewed in the Filings and Plans section of this website.