One significant finding of this study is that 51% of the claims reimbursements paid by the Second Injury Fund were not used in revised experience modification factors for the affected employers.  Thus, these employers did not receive the experience modification reductions that should have resulted from the Second Injury Fund reimbursements, and thus the Workers' Compensation insurance premiums were not lowered as they should have been.

A copy of the complete report is available here.

The Experience Modification Factor is a calculation that directly impacts an employer's Workers' Compensation insurance premiums.  The Experience Modification Factor is calculated by an independent rating bureau, the National Council on Compensation Insurance, or NCCI.  NCCI relies on loss and payroll information reported to them by insurance companies.

Advanced Insurance Management is in the process currently of notifying all employers whose experience modifiers were not properly revised to reflect the reimbursements paid by the Second Injury Fund, so that these employers can take appropriate action to get this problem corrected and the premium overcharges that resulted can be refunded.

Please feel free to contact Advanced Insurance Management, at 800-288-9256, with questions about this study.  Please ask to speak with either Ed Priz or Scott Priz.  Or you can email Advanced Insurance Management at AIM@cutcomp.com.  You can also contact Frank Knapp at the South Carolina Small Business Chamber of Commerce, at 803-252-5733,  or email him at sbchamber@scsbc.org with questions about this study.