Experience Rating: Experience Period

Experience Period

The Plan basically uses three years of an employer’s past policy experience (payroll and losses). Insurance companies report this historical data to the ICRB. Each year, we update the experience rating for each qualifying employer. In most cases the experience rating effective date is the same as the employer’s policy effective date. For example, an experience rating effective 01/01/2020 would normally contain these policy years:

  • 01/01/2018​​
  • 01/01/2017
  • 01/01/2016

Reference: Experience Rating Plan Manual Rule 2.E.1., page R11.

Most Recent Policy used “not less than 21 months before the rating effective date”

Oldest Policy used “not more than 57 months before the rating effective date”

Experience period “cannot contain more than 45 months of data.”

Rule 2.E.1.d.(2) provides that one policy may be used in more than 3 experience ratings as long as other eligibility rules are met in Rule 2.E.1.

Tip to Calculate Experience Period

StepActionDate
(a)Select rating effective date01/01/2020
(b)Add 3 months to (a)04/01/2020
(c)Subtract 2 years (b)04/01/2018
(d)Subtract 3 years (c)04/01/2015

Narrative: The maximum experience period for a 1/1/20 rating includes policies effective on or after 4/1/15, through policies effective on or before 4/1/18.

Also see Experience Rating Users Guide E-1, p. UG 15

Reporting Due Dates

Open the ER Due Dates Spreadsheet​​​ and go to the “Table” tab to see a list of dates for when unit statistical reports are due, as well as the experience period for a particular rating effective date.

Additional Resources