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What is an experience modification factor and why does it affect my premium?

An experience modification factor (e-mod) is a premium multiplier based on your actual claims history compared to what is expected for businesses in your industry and size. A 1.0 means you are average. Below 1.0 means fewer claims than expected -- you get a premium discount. Above 1.0 means more claims than expected -- you pay a surcharge. In Georgia, e-mods are calculated by the National Council on Compensation Insurance (NCCI). A poor e-mod significantly increases your annual premium for up to three years.

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