Bill Would Create Process for Experience Modification Updates

Colorado lawmakers are proposing a process for employers and licensed insurance producers to update an experience modification factor when actual payments on a closed claim are lower than the loss reserves previously reported by the carrier. SB 175, introduced Tuesday, would give employers and producers a limited right to request a correction between the time a claim is reported to a rating bureau and 31 days after the employer's effective rating date. Changes to an experience modification factor could be requested only when actual paid costs are lower than the reported estimated costs, ...