Why are Reports Showing Policy Effective Date Range

Many of the reports in Mod Advisor group information by policy year for grouping and easy visual data aggregation, but there are times when this is not technically correct.

The rating bureaus have specific rules regarding the 21-57 month rule when it comes to the information that is used in experience rating. Grouping by year is not always technically correct.

Here's an example

If the rating effective date is 4/1/25, it automatically excludes any policies with effective dates after 7/1/23 which in most cases is the current policy that just renewed.

• Group 1 range = 7/1/22 to 7/1/23 or 21 months to 33 months:  Policy Eff date 4/1/23
• Group 2 range = 7/1/21 to 7/1/22 or 33 months to 45 months:  Policy Eff date 4/1/22
• Group 3 range = 7/1/20 to 7/1/21 or 45 months to 57 months:  Policy Eff date 4/1/21 

So, think of short-term policies, ocips etc… They all need to be included in experience rating and fall into one of the three groups.  It technically would not be correct to include short term policy that was effective 12/15/21 to 4/1/22 in the 2021 year grouping (group 3) as any claims and associated mod impact would technically be grouped in group 2. 

Mod Advisor has the following rules in place.

• If there are only three policy periods and each policy period is for a full calendar year, then the reports will be grouped by Policy Effective Year.
• When more than three policy periods exist, Mod Advisor will group and show the information by Policy Effective Date Range to properly group the information per the 21-57 month rule.