---
title: "What Is an Experience Mod (E-Mod)? — Lapidar"
url: https://getlapidar.com/glossary/experience-modification-rate/
description: "Experience modification rate (e-mod): actual over expected losses, applied to workers’ comp premium. How a mod change moves agency commission."
last_modified: "Wed, 14 Oct 2026 06:20:12 GMT"
source: getlapidar.com (HTML converted to Markdown at the edge)
---

Glossary · Insurance agency commissions

# Experience modification rate (e-mod)

An experience modification rate (e-mod, or mod) is a factor applied to an employer’s workers’ compensation premium that compares its actual losses with the losses expected for a business of its size and class, so a mod above 1.00 raises premium and one below 1.00 lowers it.

By Lapidar, the team building it · October 14, 2026 · Also called e-mod; ex-mod; EMR; experience mod; mod factor

## What it means

NCCI’s [Basics of Experience Rating](https://ncoil.org/wp-content/uploads/2020/12/20201211-NCOIL-Presentation-Basics-of-Experience-Rating.pdf) presentation gives the simplified formula as actual losses divided by expected losses equals the experience modification, notes that actual losses “represent paid and reserved claims,” and that the rating is “mandatory for qualifying employers,” with qualification “based on premium, varies by state.” NCCI calculates mods in many states; some states have their own rating bureau.

The mod is usually recalculated each year and applied at the renewal of the [workers’ compensation](https://getlapidar.com/glossary/workers-compensation-insurance/) policy, though a revised mod can arrive mid-term and be applied by endorsement.

The losses behind the mod are the ones on the insured’s [loss run](https://getlapidar.com/glossary/loss-run/).

## How it shows on a commission statement

The mod never appears as a commission line of its own. It shows up as a change in premium: a renewal that costs more or less than expiring with the same payroll, or a mid-term endorsement when a revised mod is applied back to the effective date. Commission follows that premium, so a mod revision can produce additional commission or a chargeback on a policy nobody touched. See our guide to [commission on mid-term endorsements](https://getlapidar.com/guides/commission-on-mid-term-endorsements/).

## Example

Mod revised mid-term · EX-65020Example data

**Premium before mod**
$20,000.00

**Mod at binding**
1.10

**Premium written**
$22,000.00

**Revised mod, applied by endorsement**
0.95

**Return premium**
−$3,000.00

**Commission chargeback at an invented 10%**
−$300.00

Example data. The chargeback is correct here; a mismatch would show if the carrier applied a different rate to the endorsement than to the policy.

## Common mistakes to check

- Reading a renewal premium drop as lost business when the mod fell.
- Treating a mod endorsement chargeback as an error without checking the revised mod.
- Forgetting that a mod change mid-term changes the producer’s split too.

## Questions

### What is an e-mod in workers’ comp?

A factor that compares an employer’s actual workers’ comp losses with the losses expected for its size and class. Above 1.00 raises premium, below 1.00 lowers it.

### Does the experience mod affect agency commission?

Indirectly. Commission is a percentage of premium, and the mod changes premium, so a lower mod means less premium and less commission at the same rate.

### Who calculates the experience mod?

NCCI in the states it serves; some states use their own rating bureau.

## Sources

- NCCI, [Basics of Experience Rating](https://ncoil.org/wp-content/uploads/2020/12/20201211-NCOIL-Presentation-Basics-of-Experience-Rating.pdf), presentation to NCOIL, December 11, 2020 (PDF). Retrieved October 14, 2026.

Lapidar is [commission reconciliation software for independent insurance agencies](https://getlapidar.com/), in its founding pilot. Related: [workers’ compensation](https://getlapidar.com/glossary/workers-compensation-insurance/).

In this entry

1. [What it means](https://getlapidar.com/glossary/experience-modification-rate/#meaning)
2. [On a commission statement](https://getlapidar.com/glossary/experience-modification-rate/#on-statement)
3. [Example](https://getlapidar.com/glossary/experience-modification-rate/#example)
4. [Common mistakes](https://getlapidar.com/glossary/experience-modification-rate/#mistakes)
5. [Questions](https://getlapidar.com/glossary/experience-modification-rate/#faq)
6. [Sources](https://getlapidar.com/glossary/experience-modification-rate/#sources)

All 86 terms, from account current to written premium.

[Glossary A–Z](https://getlapidar.com/glossary/)

Check each mod endorsement’s commission against the policy’s rate.

[See a sample report](https://getlapidar.com/sample-report/)

## Reconciling statements is the hard part.

Check each mod endorsement’s commission against the policy’s rate. [See a sample report](https://getlapidar.com/sample-report/), or read [how the founding pilot works](https://getlapidar.com/pilot/).

[Open an account — founding pilot](https://app.getlapidar.com/signup)

[See a sample report](https://getlapidar.com/sample-report/)