GLOSSARY
This Insurance Glossary of Terms is produced and maintained by the National Alliance Research Academy. 
If you have a comment, suggestion or question please contact us at glossary@scic.com

Experience Modifier

Factor developed by measuring the difference between the insured’s actual past experience and the expected experience of the class. The factor may be either a debit or credit (greater than or less than 1.0). When applied to the manual premium, the experience modification produces a premium that is more representative of the actual loss experience of an insured.