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Calculating a Firm's Experience Modification Factor

Experience Factor Calculation Compares 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.

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