The experience modification is a factor applied to the Workers' Compensation premium

which reflects an employer’s variation from the average of

all employers in the same class of business.

Using the employer’s own past experience, the experience modification is determined

by comparing actual losses to expected losses.

This comparison of losses results in a premium reduction (credit) if the employer’s

experience is better than the average, or a premium increase (debit) if this experience is

worse than the average.