They're all subject to audit so no problems with short rate penalties unless you are with a state fund (nysif).
If their mod coincides with the renewal date it may make a small difference. I think carriers are supposed to split payrolls but they never do.
You may also want to see if there was a state base rate change for that specific class. Sometimes it can benefit them sometimes it can hurt them. I rewrote one once a week before the state increased the base rate by 20%. I locked in the lower rate for a year whereas his renewal had the 20% increase on it.
No, they do not start all over. What will happen is the mod will change on the anniversary rating date. If you move them mid term this means that their mod is going to change mid term of their new policy.
If they are not large enough for experience rating, this is a moot point. However, if they do have a mod, I would suggest making sure the person you are dealing with understands that the date on which their mod is generated is going to change as a result of the mid term move and it will take some time for everything to cycle out.
Get their current mod worksheet and look at how the mod is generated. You will notice that the most recent year's data is not included. It won't be included till next year and then affects the mod for three years till it falls off. It is a four year revolving cycle with the mod development.
For example.... the data included for the current year's mod will not include last year(2014-2015), but will include the three years prior to that(2013-2014, 2012-2013 & 2011-2012). Too much to get into here.
How large is total account? What portion of the premium is the Comp?
