Calculating a Firm's Experience Modification Factor

	Frequently Asked Questions

Experience Factor Calculation Compares Credible Actual to Expected Losses
The "computed" experience factor.

Compensable-Claim-Free Experience Rating
Special rules for compensable-claim-free firms.

Limitation on Annual Changes to the Experience Factor
How much can a firm's experience factor change from one year to the next?

Credibility Weighting Actual to Expected Losses
The credible actual loss calculation.

Actual Losses
The firm's actual claim costs used in the experience rating calculation.

Expected Losses
The firm's expected losses used in the experience rating calculation.