The rule from the NCCI Experience Rating manual is shown below. All three conditions must be satisfied before the current mod will not be applied to the new owners).
2. Exclusion of Experience.
Rare circumstances may require that experience for any entity undergoing a change in ownership be excluded from future experience ratings. The experience will be excluded only if the rating organization confirms all of the following:
a. The change must be a material change such that:
(1) The entire ownership interest after the change had no ownership interest before the change, or
(2) The collective ownership of all those having interest in an entity results in either less than:
1/3 ownership before the change, or
1/2 ownership after the change; and
b. The material change in ownership is accompanied by a change in operations sufficient to result in reclassification of the governing classification; and
c. The material change in ownership is accompanied by a change in the process and hazard of the operations. Change in process and hazard is determined by the rating organization.