Which guideline qualifies an employer to participate in Experience Rating?

The guideline that qualifies an employer to participate in Experience Rating is based on having enough premium in the most recent 24-month period. Experience Rating is a system used to adjust workers' compensation insurance premiums based on the employer's own loss history, which includes the frequency and severity of claims over a specified period.

To effectively utilize Experience Rating, employers are required to have a sufficient volume of premiums — this is crucial because it ensures that there is enough data to accurately reflect the employer's risk profile and loss experience. The 24-month period gives insurance providers a comprehensive view of an employer's claim history, allowing for a more precise calculation of rates aligning with the employer's actual risk exposure. This helps to ensure fairness in the premium calculations, linking the costs more directly to the employer's risk rather than relying solely on industry averages.

In contrast, the other choices do not meet the necessary criteria for participation in Experience Rating. For example, maintaining a high employee turnover rate or having a loss ratio below the industry average may reflect certain business conditions, but they are not specific requirements for entering the Experience Rating system. Similarly, while having enough premium in the most recent 12-month period may indicate some level of activity, it does not provide the necessary long-term view