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Experiencing A Change

 State: NY

 

Lawsky Approves Change in Split Point

 

New York Financial Services Superintendent Benjamin Lawsky has approved a change in the split point used by the New York Compensation Insurance Rating Board to determine experience modifications in the workers' compensation system.

 

NYCIRB Chief Actuary Ziv Kimmel said in an announcement that, effective Oct. 1, 2013, NYCIRB will increase the split point from $5,000 to $10,000.

 

New York is among at least 40 states where regulators have approved the change. Claims under the new $10,000 threshold will be considered primary and will be weighted at 100% for the purpose of determining each New York employer's experience modifier, or X-Mod. Claims above $10,000 will be discounted.

 

NYCIRB did not estimate the impact on employers. National experts have said some employers will see their premiums decrease as a result of the change, while a few could see premiums increase by as much as 50%.

 

Kimmel said the Department of Financial Services also approved a modification in the maximum modification debit factor, which is expected to affect a relatively small number of employers and result in a negligible overall impact.

 

The NYCIRB announcement and a detailed list of changes to NYCIRB's Experience Rating Manual are here.

 

Source: NYCIRB

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