If a large employer has a current Workers' Compensation Policy with an experience modification factor above 1.00, what can we assume?

A current Workers' Compensation policy with an experience modification factor above 1.00 indicates that the employer has experienced a higher number or greater cost of claims than what is statistically expected for similar businesses in their industry. The experience modification factor is a tool used to adjust an employer's workers' compensation insurance premium based on their claims history.

When the factor is above 1.00, it signifies that the employer's claims experience is worse than average, leading to higher premiums. This means that their claims history suggests a riskier work environment or perhaps more frequent injuries, which deviates from the norm for similar employers. It represents a direct correlation between claims experience and the financial implications on the workers' compensation premiums the employer is required to pay.

Thus, a higher experience modification factor clearly aligns with worse-than-expected claims experience, supporting the correctness of the chosen answer.