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2017 Work Comp xMod and Owner-Officer Exclusion

Had a great time with Phil our Amtrust underwriter and some of our members getting deep into the 2017 Work Comp xMod changes. Some heady conversation over pizza and soda combined with some laughs made for a great time.

Group photo


Based on the scenarios that are coming we see significant disruption in the Work Comp marketplace for businesses, especially small businesses, and it is not a laughing matter.

If you are not aware of the 2017 changes you need to get up to speed on the new “percentage of ownership” changes and how that impacts owner/officer exclusions.  You need to understand the new xMod formula and how frequency will be the driver of the mod calculation. There are some interesting changes that we learned about today that will take effect Jan 1, 2017.  Make sure you are educating yourself so you can advise your prospects and clients in a knowledgeable manner.  There is a review being done by the DOI and industry lobby groups to hopefully clean up the language of the AB 2883 bill that is changing the owner/officer exclusion.  The intent of the bill was to impact business written after Jan 1st, 2017.  However, the language in the bill was not drafted this way and leaves all Work Comp policies exposed which was not intended.  So industry groups, carriers, and the DOI are scrambling to figure out what to do.  In the near future we hope the carriers will start to give guidance and information about how premium audits will be handled, etc.

Here are some resources for your education:

IIABCAL Legislative Update October 14th 2016

AB 2883 Creates Problems For Agents With Large Workers’ Comp Books

Insurance Journal – Excluded Officer article

Sample Officer/Owner Waiver Form

Experience Rating Plan Changes in 2017

WCIRB Webinar: The Impact of the 2017 Variable Split Plan

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