The experience modification factor applied to a workers compensation premium rewards an employer whose:
Explanation
The mod compares an employer's actual loss experience with the losses expected of a business of its size and classification, so better-than-expected results produce a factor below 1.00 and a credit, worse results a debit above it. That is why loss control and return-to-work programs pay off: they cut both claim frequency and claim cost. Payroll growth, employee benefits and length of tenure play no part in the formula.
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