Agent

Mods are revised only when corrected data is submitted by the carrier.

If you are loss free, your mod factor is as low as it can get for your industry type and size.

Generally claim frequency has a larger impact. Multiple claims that total $10,000 will have a larger impact on your mod than a single $10,000 loss.

Modifications are typically calculated once a year and any changes to a claim during the year are included in the next experience rating year.

Loss history follows a business in most cases whether the business was sold or just the assets. Businesses that share more than 50% common ownership are subject to a single modification factor based on their combined data.

For questions concerning open claims:

1. Contact your agent
2. Contact the carrier's claim department

For questions about class codes and payrolls:

1. Contact your agent
2. Contact carrier's audit department

For questions about the rating formula:

1. Email MWCIA at info@mwcia.org
2. MWCIA 952.897.1737

The electronic version of an Experience Rating is available on the CDX web site. Please note that CDX web site is for only registered carriers. You may also access electronic experience ratings through the Web Experience Mod product located on our website.

1. Non-Experience Rated Employers
1. Non-experience rated employers will receive a credit or debit depending on
   1. the number of years they have been insured with the Assigned Risk Plan, and
   2. the number of lost time claims they have had within the applicable rating period.
2. Depending on the above criteria, the following credits/debits will apply
   1. Non-experience rated employers who have been insured with the Assigned Risk Plan for the last three consecutive years will be subject to the following schedule based on lost time claims during the applicable rating period:
         0  lost time claims — 33% credit
         1  lost time claim — no credit or debit
         2  or more lost time claims — 10% debit
   2. Non-experience rated employers who have not been insured with the Assigned Risk Plan for the last three consecutive years will be subject to the following schedule based on lost time claims during the applicable rating period:
         0  lost time claims — 10% credit
         1  lost time claim — no credit or debit
         2  or more lost time — claims 10% debit
2. Experience Rated Employers
   • Will not be subject to Merit Rating.

Experience of self-insurers may be included in an experience rating. The data must be submitted to MWCIA in an approved format (ERM-6). Refer to the ERM-6 form found under CARRIERS, AGENTS, or TOOLS and selecting "Forms", at https://www.mwcia.org for instructions and along with a copy of this form.

An employer's rating effective date determines its experience period and generally consists of three completed years of experience ending one year prior to the effective date of the modification. Experience for each of an employer's policies is included if the policy effective date is:

(1) Not less than 21 months before the rating effective date, and

(2) Not more than 57 months before the rating effective date.

An employer's experience period cannot contain more than 45 months (3 3/4 years) of data. The 45 month limitation is a maximum period of time between the expiration date of the most recent policy and the effective date of the oldest policy.

The Experience Period Reference Table displays the policy effective date ranges that will be included in the new experience modification effective date. Click here to view the table.

Questions about Experience Modifications can be sent to our Experience Modification Department by emailing unitstat@mwcia.org.

• 2021--$222,500
• 2022--$230,500
• 2023--$242,500
• 2024--$122,500
• 2025--$119,500

Minnesota Statute 176.041, Subdivision 1. outlines certain employments and individuals who are automatically excluded from workers' compensation coverage in Minnesota. If the employment or individual does not meet the qualifications outlined in the statute, they are automatically included. The employments and individuals who are automatically excluded from coverage have the option, if they so choose, to elect coverage. Refer to Minnesota Statute 176.041, Subdivision 1. for details.

MN Statute 176.041 subdivision 1 (14) states that a domestic worker would be excluded from coverage if - " a person employed as a household worker in, for, or about a private home or household who earns less than $1,000 in cash in a three-month period from a single private home or household provided that a household worker who has earned $1,000 or more from the household worker's present employer in a three-month period within the previous year is covered by this chapter regardless of whether or not the household worker has earned $1,000 in the present quarter"

MN Statute 176.041 lists excluded employments.

Nonprofits are exempt from providing coverage if they have paid out less than $1,000 in annual wages in the preceding calendar year.

 If the $1,000 threshold has been exceeded and because there is no ownership in non-profits, everyone is considered an employee.

Those individuals listed in the company charter or articles of incorporation as executive officers (President, Vice President, Secretary, and Treasurer), would be held to the officer min/max payroll amounts provided they are active in the day to day operations.

If officers are not active except to attend meetings, then they are excluded.

Everyone else is included at their actual payroll received.

In the MN Basic Manual Rule 2 - Premium Basis and Payroll Allocation, G. Interchange of Labor. Click here to open the MN Basic Manual.

In the MN Basic Manual, Rule 1 - Classification Assignment, F. Changes or Corrections in Classifications. Click here to open the MN Basic Manual.

The definition of payroll, for workers compensation, means money or substitutes for money. Refer to the MN Basic Manual, Rule 2 - Premium Basis and Payroll Allocation, B. Payroll, for a list of what's included. Click here to open the MN Basic Manual.

Please see Basic Manual Rule 2.E.1.b. Premium Determination

The payroll of all executive officers covered by the policy shall be included in the statement of payroll and premium charged subject to the following limitations:

(1) minimum individual per week payroll equal to the minimum individual payroll value for this rule stated in the Miscellaneous Values of the current Minnesota Ratemaking Report.

(2) maximum individual per week payroll equal to the maximum individual payroll value for this rule stated in the Miscellaneous Values of the current Minnesota Ratemaking Report.

(3) The payroll limitations in b(1) and b(2) apply to the average weekly payroll of each executive officer for the number of weeks the officer was covered under the policy.  A part of a week is considered as a full week in determining the average weekly payroll.

The purpose of the Minnesota Test Audit Program is to verify the accuracy of the statistics reported to the MWCIA. A Test Audit includes a physical examination of the employer’s books and records upon which the unit statistical information is filed to ensure the highest degree of accurate information entering MWCIA’s database.

Test Audits are selected at random based upon set criteria. Test Audits may also be requested in writing by

• Employer
• Carrier
• Employer’s Representative
• Authorized Governmental Agency

We had a detailed article regarding the Minnesota Test Audit Program in out 1st Quarter of 2016 newsletter on page 4.

The Minnesota Contractors Premium Adjustment Program (MCPAP) provides a potential premium credit based on the employee's average hourly wages. This is an optional program.

Employers who paid the qualifying average hourly wage in at least one contracting classification during the calendar year are eligible. The qualifying average wage changes each year.

Based on the information provided on the application, MWCIA computes the insured's average hourly wage for each classification, the applicable classification premium credit, and the overall policy credit factor. These calculations are displayed on a MCPAP Credit Worksheet. A copy of this worksheet is mailed to the carrier of record and the employer.

Expected losses on the experience rating worksheets are lowered by the amount of the MCPAP credit factor. This adjustment to expected losses is at the aggregate level; both the expected losses and the expected primary loss totals are adjusted by the MCPAP credit factor in the experience modification formula.

The MCPAP credit factor is applied in the calculation of an employer's premium after the experience modification factor but before any other credits are applied to the policy.

• Applications are mailed to employers in January of each year. The enrollment period deadline is April 1 of each year.
• Applications received after April 1 are subject to a two-point (.02) late processing penalty. Applications can be submitted up to 90 days after the effective date of the policy.
• Calculation of the MCPAP Credit Worksheet begins in early fall of each year and are mailed to the carrier of record and the employer.