The Stakes: A modular home manufacturer saw their Mod creeping up to 1.07. They couldn’t understand why small claims were having such a big impact.
The Investigation: The Advisor reviewed the claim files and found a coding error. A series of knee, shoulder, and hand injuries had been coded as “Indemnity” (lost time) claims.
The Breakthrough: The Advisor knew that under Rating Bureau rules, “Medical-Only” claims are discounted by 70% in the Mod calculation. By proving these claims had no lost time, the Advisor forced the carrier to re-code them.
The Result: The Mod dropped to 1.00, netting a $5,000 annual savings.