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Experience Rating Eligibility

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Experience Rating Eligibility

October 9, 2013

In this edition, we highlight the issue of experience rating eligibility.

A policyholder's eligibility for experience rating is determined by a number of factors. To determine eligibility, payroll developed during the experience period is totaled by classification code. These totals are multiplied by the pure premium rate that applies as of the effective date of the experience modification, not the insurer's rate, for the particular classification. The sum of these premium calculations must equal or exceed the minimum premium threshold.

As of January 1, 2013, the experience rating eligibility threshold is $27,500. Additional information, including an example of the calculation, is available in the Online Guide to Workers' Compensation in the Learning Center section of

Proposed changes to the experience rating eligibility threshold are filed every year in the WCIRB Pure Premium Rate Filing. Check our website in the coming months to find out what the revised experience rating eligibility threshold will be for experience modifications published on or after January 1, 2014.

Read More Online: Online Guide to Workers' Compensation