Workers' CompensationQuestion 212 of 215
What does an employer's Experience Modification Factor (X-Mod) measure for workers' compensation purposes?
a.The number of employees the business has
b.How that employer's actual loss history compares to the expected losses for similar businesses in the same classifications
c.The maximum payroll allowed before higher rates apply
d.Whether the employer is allowed to self-insure
Explanation
The X-Mod is calculated by the Workers' Compensation Insurance Rating Bureau (WCIRB) by comparing the employer's actual losses over a recent multi-year period to the average expected losses for businesses of the same class codes and payroll size. An X-Mod of 1.00 means average; below 1.00 lowers premium; above 1.00 raises premium.
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Related questions on this topic
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