B3. NCCI Experience Rating Plan

Question 1

2 requirements for NCCI experience rating plan

Answer 1

1. Most recent 2 years of the experience period has a total manual premium of at least the column A
2. Average manual premium over entire experience period (3 years) is at least Col B

Question 2

NCCI experience rating formula

Answer 2

emod = [Ap + WAe+ (1-W)Ee +B] / (E+B)
W = weighting value, used to limit the weight of actual excess loss
B = ballest value, used to provide stabling by limiting the impact of any single loss on the mod

Question 3

Maximum debit mod

Answer 3

1.1+ 0.0004 x (E/G)