If it were not, anyone with a factor greater than 1.00 would just opt out of the plan. In most states experience modifications are calculated by the NCCI on behalf of the insurance companies that consist of its membership. The NCCI is a private for-profit corporation. Originally it was established and funded by the insurance industry. It provides the actuarial, statistical, and rule-making apparatus that is the underpinning of workers compensation pricing in the United States.
Several states have their own rule and rate-making bureaus.
The first are members of the NCCI s Interstate Rating Bureau. These states are Indiana, Massachusetts, Minnesota, New York, North Carolina, Ohio, Texas, and Wisconsin. The second group of states consists of California, Delaware, Michigan, New Jersey, and Pennsylvania. They are not members of the Interstate Rating Bureau. These modifiers are never calculated with payroll or claims from another state.