The Stakes: A multi-state contract hauler with $6M in revenue was paying $140,000 in premiums. Their Mod was hovering near 1.0, but the owner felt it should be lower given their recent safety improvements.
The Investigation: The Advisor audited the loss runs and found “zombie” claims—open files dating back six years with no recent activity. These stagnant claims were inflating the reserves and keeping the Mod artificially high.
The Breakthrough: The Advisor brought in a private investigator. They discovered two of the claims were fraudulent and closed them immediately. They then successfully argued for reserve reductions on two other dormant claims.
The Result: By cleaning up the data, the annual premium dropped from $140,000 to $90,000, and the Experience Mod hit an all-time low of 0.67.