The WCIRB submitted its January 1, 2015 Pure Premium Rate Filing to the California Department of Insurance on August 19, 2014. Once the Insurance Commissioner issues a decision on the Filing later this year, the WCIRB will begin issuing 2015 experience modifications. What data is used to calculate an experience modification?
The data used to calculate an experience modification is determined by the company's anniversary rating date, which in almost all cases is the effective date of the experience modification. The inception date, or start date, of a company's policies determines its anniversary rating date. For example, if the policies always start on January 1, the anniversary rating date would be January 1. If the company changed its policy inception date or has multiple concurrent policies with varying inception dates, determining the anniversary date may be more complicated. In these instances, you should refer to the rules of the California Workers' Compensation Experience Rating Plan—1995 (Experience Rating Plan) or contact the WCIRB Customer Service department.
The anniversary rating date determines the experience period. In most cases, all payroll and losses developed under any policy that incepts within the experience period will be used in determining the experience modification. The experience period is defined in the Experience Rating Plan as the period that commences four years and nine months prior to the anniversary rating date and terminates one year and nine months prior to the anniversary rating date. If the anniversary rating date is January 1, 2015, the experience period is April 1, 2010 to April 1, 2013, as illustrated in the table below.
Some data developed during the experience period is not used in the experience modification calculation. This includes:
To learn more about California's experience rating system, visit the Online Guide to Workers' Compensation or watch one of the WCIRB's Education on Demand video modules. This information is available in the Learning Center of the WCIRB website.
2015 Advisory Pure Premium Rate Filing Submitted to CDI
Online Guide to Workers' Compensation: California's Experience Rating System
Education on Demand Video: Experience Rating Eligibility and Qualification