Independent Insurance Agent and Risk Manager
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1250 Simon Blvd, K-101, Easton, Pa 18042 114 N. Main St., Doylestown, Pa 18901

Experience Modification Factor Myths and Facts

Uncategorized / September 21, 2017

MYTH #1

Insureds in a high risk class of business will always have a high mod.

FACT #1

Most top markets offer loss control services, which help reduce the frequency and severity of claims for any class of business.

MYTH #2

All carriers would handle the same claim the same way.

FACT #2

Some carriers prioritize closing claims quickly and efficiently in order to lower the overall cost of an accident.

MYTH #3

One accident will not affect an insured’s premium significantly.

FACT #3

Insureds are affected by the delayed impact of a claim for multiple years. First, the mod will not be adjusted until a full year after the policy term ends. Then, the claim will remain a mod component for THREE full years thereafter. Prior claimants can be long gone from a company before their debit mod goes away.

Many of our “A” Rated carriers provide resources to help you decrease your experience mod.

LET US BE YOUR ADVOCATE!

We can help you activate the carrier resources your client deserves.

Remember, our work doesn’t end once the policy is bound. We will be your partner throughout the policy term (and after). Give us a call to learn more about our carriers and their resources.

Reprinted with permission – All Risks of California Insurance Services, Ltd. – CA License #0B84526

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