Rule 4123-17-03.2 | Experience modification cap.
(A) Definitions.
As used in this rule:
(1) "Experience modification" or "EM" means the experience modification as determined under rule 4123-17-03 of the Administrative Code.
(2) "Eligibility determination date" means the March first immediately preceding the policy year for which the EM is being calculated for private employers, and the September first immediately preceding the policy year for which the EM is being calculated for public employer taxing districts.
(B) Except as provided for in paragraph (D) of this rule, the bureau of workers' compensation shall limit the increase in EM of an employer meeting the eligibility requirements of this rule to twenty-five per cent of the initial EM calculated for that employer in the preceding rating year if the employer is either individually experience rated or base rated in both the current and preceding rating years for any policy years for private employers beginning July 1, 2023 and ending June 30, 2027 or for any policy years for public employer taxing districts beginning January 1, 2023 and ending December 31, 2027.
(C) Eligibility requirements.
As of the eligibility determination date:
(1) The employer must be current with respect to all payments due the bureau, as defined in paragraph (A)(1)(b) of rule 4123-17-14 of the Administrative Code;
(2) The employer must not have cumulative lapses in workers' compensation coverage in excess of forty days within the preceding twelve months; and
(3) The employer must report actual payroll for the preceding policy year and pay any premium due upon reconciliation of estimated premium and actual premium for that policy year no later than the eligibility determination date.
(D) An employer removed from the EM cap program for failure to meet the criteria set forth in paragraph (C)(3) of this rule will be rerated for the full policy year at the employer's base rate or experience-modified rate as determined by the employer's expected losses for the policy year.
(E) Application of cap to successor policies.
(1) Where a transfer of experience occurs pursuant to rule 4123-17-02 of the Administrative Code, the resulting EM is not subject to limitation under this rule unless one of the following apply:
(a) The transfer is a combination as a result of bankruptcy proceedings, when the transaction is a change in policy number without any change in exposure; or
(b) A base-rated successor wholly or partially succeeds a single policy.
(2) If the criteria in paragraph (E)(1)(a) or (E)(1)(b) of this rule are met, the predecessor's published EM in the preceding rating year will be the EM published for the successor in the same rating year for purposes of determining whether the cap applies under this rule.
Last updated July 2, 2024 at 11:24 AM
Supplemental Information