 
HealthInsuranceCalifornia >> Worker'sCompensation >> Workers Compensation - Experience Modification Experience modification Based on reported paid losses, loss reserves and the insurance premium of the policy holder for an experience period, the WCRIB uses a standard mathematical formula that has been approved by the Insurance Commissioner to generate an experience modification for each company. A company is subject to experience rating when the insurance premium for a three-year period reaches a specific amount set by the WCRIB. (Effective January 1, 1995, this amount is $14,100 in pure insurance premium; however, this figure changes periodically.) Therefore, the employer's loss experience will affect his or her insurance premium in the form of an experience modification. When an employer is subject to an experience modification, the modification must be shown on the policy and applied to the insurance premium developed by application of basic insurance manual rates. Additionally, an employer's insurance premium can further be affected by the application of debits/credits for individual risk characteristics, for example, premium size, loss control programs etc. Note: All individual risk characteristics are applied
before the Experience Modification.
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