PROCEEDINGS NOVEMBER 24, ~933 POLICY LIMITS IN CASUALTY INSURANCE PRESIDENTIAL ADDRESS~ PAUL DORW~-ILER
|
|
- Clemence Nash
- 8 years ago
- Views:
Transcription
1 VOL. XX, PART I No. 4 x PROCEEDINGS NOVEMBER 24, ~933 POLICY LIMITS IN CASUALTY INSURANCE PRESIDENTIAL ADDRESS~ PAUL DORW~-ILER Insurance, in theory, should either cover the whole risk or that portion of the risk involving the larger potential losses, even though their occurrence is less probable. The current practice in most lines of casualty insurance is somewhat in conflict with this theory. Generally, the standard coverage for third party insurance involving injury to persons is based on a fixed set of low policy limits per person and per accident with additional coverage for higher limits considered as secondary. It is proposed in this paper to discuss the place which policy limits, particularly for third party insurance involving injury to persons, occupy in the structure of casualty insurance and to consider some of the properties of policy limit factors. HISTORICAL DEVELOPMENT In the beginning of casualty insurance, there was no experience available and the rates were necessarily based on judgment. The underwriters proceeded with caution, under these conditions, and placed restrictions on the maximum liability assumed from the occurrence of a single event. The underwriters, too, had before them the practice in fire, marine, and life insurance, where definite amount limits on a single los4 were in general use. In these circumstances it was quite natural to restrict the losses in casualty insurance. As the business grew, experience was devel- I
2 9. POLICY LIMITS IN CASUALTY INSURANCE oped in which the losses were restricted through the presence of limits in the policies. The use of this experience for rate making purposes tended to fix and standardize these limits into basic coverages which came to be more and more widely accepted. There were other important reasons why caution should have been used and limits placed on the losses due to single accidents in lines involving injuries to persons. Injuries to persons differ essentially from injury or damage to property with respect to the possibility of replacement. Injured organs in persons cannot be replaced, so that the economic law of supply and demand does not operate in fixing the cost. Injuries to persons in third party insurance are the more difficult to evaluate, for, in addition to the severity of the injury, there are such factors as the negligence and fault of the injured or of others, and the degree of responsibility or the liability of the insured for the injury involved. Inherent in these difficulties is the further difficulty of expressing injuries to human beings in terms of dollars or of expressing the magnitude of something in terms of units for measuring magnitude in an entirely different category. These difficulties in evaluating losses do not appear in the same degree in the forms of insurance involving property, or in life, and accident and health insurance, which involve injuries to persons. In property insurance, replacement of damaged portions may ordinarily be secured in the open market, which permits the law of supply and demand to enter into the adjustment of losses whether by mutual agreement or by court verdict. While there can be no replacement in life insurance and accident and health insurance, there is a difference of major significance with respect to the time and plan of evaluating specific losses. In these types of insurance the values of the injuries in terms of money are left to the choice of the insured. Before he enters into the contract, the insured, with broad restrictions, can make his own estimates of the values of his injuries and have these estimates written into the contract, providing he pays the corresponding premiums. In third party insurance, the potential injured does not enter into the making of the contract; in fact, he is unknown at the time. The problem of evaluation does not arise until after the accident has occurred, when the economic interests of the injured and the assured or his carrier are at variance, which makes it difficult to bring about satisfactory adjustments.
3 POLICY LIMITS IN CASUALTY INSURANCE 3 The use of policy limits for lines of insurance which do not have natural limitations on losses from single events has become universal. State laws generally prohibit the writing of policies with limits so large that they make the carrier liable for a potential loss in excess of a definite percentage (usually 107'o) of its capital and surplus, after allowing for reinsurance provisions. With the growth of the carriers to their present size, these state laws have little effect on policy limits. In the beginning they probably placed definite limitations on many policies. The presence of these state laws would indicate that, from the public viewpoint, it is against sound policy to permit a carrier to risk an undue portion of its resources on any single event. These observations regarding the historical development of policy limits are based on fragmentary material and are given as plausible inferences and deductions rather than as an authentic history based on adequate research. POLICY LIMITS AND HAZARD There is a fundamental difference in the relation between the hazard and policy limits in insurance generally, and in casualty insurance, particularly third party insurance. In the other forms of insurance, and also in some casualty lines involving damage to property, the hazard varies about directly with the policy limits. It follows that the premium should vary accordingly. In third party insurance, losses do not vary even approximately with the size of the policy limits. The relative increase in losses is small compared with the increase in the policy limits even for increases just above standard limits. As the policy limits used increase, the relative change in hazard decreases, approaching zero for indefinitely large limits. In the other forms of insurance there is an increase in hazard which is approximately proportional to the increase in limits until an amount is reached representing the full value of the object insured. There can be no real loss to the assured in excess of such a limit and there is a moral hazard involved in issuing policies with such excess limits. In third party insurance there is no natural limitation of the amount that may be involved in a single accident. There is, however, a rapidly decreasing probability that very high amounts will be involved, which makes the corresponding increases in premium very small.
4 4 POLICY LIMITS IN CASUALTY INSURANCE PoLIcY LIMITS AND EXCESS INSURANCE The presence of limits written into a policy places a restriction on the losses of the risk so that any losses in excess of the designated limit or limits are excluded from coverage under the policy. Excess insurance consists in coverage for losses in excess of specific limits which are designated in the contract. Excess insurance and the usual coverage under a policy containing the same limits may be considered complements of one another. The policy with its coverage restricted through policy limits and excess insurance for coverage beyond those limits constitute full coverage for all losses that may occur. CLASSIFICATION OF POLICY LIMITS Policy limits may be classified in two broad divisions: in one, restrictions are placed on an individual event in the risk, and in the other, restrictions are placed on a combination of all events or on the risk as a whole. In the first, limitations are placed upon the losses for an individual person which shall be referred to as a per person policy limit or upon a loss for an individual accident which shall be called a per accident policy limit. In the second, a limitation is placed upon the total amount of losses for the risk. This limitation may be a definite fixed amount for the risk, which shall be called per amoun~ policy limit, or the losses may be limited to a specific designated loss ratio, which shall be called per loss ratio policy limit. The per loss ratio limit is seldom, if ever, used with the assured as an upper policy limit, but it has been used as a basis for excess coverage and for supplementary reinsurance and coinsurance agreements. It is being included here primarily because it serves as the means for studying the relations involved between the per amount limit and the size of the risk premium. PER PERSON AND PER ACCIDENT POLICY LIMITS The per person and per accident policy limits, the two limitations placed on single events in casualty policies, will be considered together because they have many properties in common and also because they are chiefly used together. Policies for liability
5 POLICY LIMITS IN CASUALTY INSURANCE 5 for injuries to persons contain a maximum limit for injuries to one person in an accident and also a maximum limit for injuries to all persons in a single accident. A few standard tables showing the cost of policies containing various combinations of higher limits in terms of the cost of policies written on standard limits (usually $5,000 per person and $10,000 per accident) are now in general use by a large number of casualty companies for third party lines involving injuries to persons. The losses per person, i.e., the evaluations of injuries in dollars, are subject to the influence of human sympathy and public opinion. They are subject to variations due to changes in the public viewpoint which ultimately are reflected in direct settlements and in court verdicts. The trend has been toward placing higher monetary values on both fatal and non-fatal injuries to human beings. This may he a reflection of an increasing appreciation of the place and importance of human life. It is also in line with the course of the general price level for the last few decades. Apparently there will not result from this depression a corresponding recession of cost of injuries as of price level from the maximum of An increase in the cost per injury must necessarily be reflected in the cost per accident, for this is a sum of a number of individual injury costs. There is, however, another element in the cost per accident consisting of the number of injuries per accident. This second element is affected by such agencies as the mechanization of industry, the general development of industries involving 'a concentration of persons, or a change in our social institutions and custom~ bringing about larger and more frequent gatherings of people. The development of transportation facilities and the resulting social change undoubtedly increased public accidents and resulted in an increased cost of coverage for such accidents both per person and per accident. There are certain tacit assumptions underlying the present tables of policy limit factors for higher policy limits. It is assumed that there is no variation for per person limits by risk size for risks of the same kind or within a given classification. There may be some question as to whether big and prosperous concerns are not more likely to have higher verdicts rendered against them than smaller ones in the same classification. This same doubt may exist as to losses coming under standard limits.
6 6 POLICY LIMITS IN CASUALTY INSURANCE The general spread of third party insurance in recent decades would tend to reduce such variations on the ground that the losses are covered by an insurance carrier. A policy limit factor table attempts to express the cost of policies with higher limits in terms of the cost with standard limits. Any influence that would affect the pure cost for injuries equally under standard limits and higher limits should have no effect on the limit table. It is also generally assumed in the present tables that there are no variations in the cost per accident by size of risk within a classification. This may be questioned for there are certain causes of accidents, such as explosion and fire, which are quite likely to embrace the whole or a very large part of a risk. Large risks are subject to greater hazards from these sources than small risks where the total number exposed is more limited. For this same reason, however, the smaller risk would be less likely to select high limits, which tends to obviate a need for distinction. Recognition of variation within a classification for both per person and per accident limits is a refinement hardly warranted at present with our limited information of these hazards. Variations by lines of insurance and by classifications within some lines are recognized to a degree at present through selection of the particular policy limit factor table which is to be applied. The use of the same table in all territories implies that there is no variation in the policy limit factors by place. The variations over periods of time are probably greater for per person limits than for per accident limits. Such variations by time periods can be recognized by changes in the tables or the adoption of new tables. There are possibly unrecognized conditions which cause greater variations than some of those that have received recognition. The functions representing the policy limit factors in terms of standard limits have certain properties which may be stated as a general law. For equal consecutive increases in the policy limits there will be correlated increases in the policy limit factors which decrease as the policy limits become larger. In other words, in the general arrangement of per person and per accident limit factor tables (see Appendix I), the difference between adjacent factors for equally distant limits should decrease as one passes to the right along the same line or as one
7 POLICY LII~fITS IN CASUALTY INSURANCE 7 passes downward along the same column. The properties of the limit factors are treated in detail in Appendix I. PER A~OUNT AND PER LOSS RATIO POLICY LIMITS Under certain conditions it is difficult to restrict losses by limiting the amount per accident. It is almost impossible to establish a causal relation to a specific event when there are a series of events, of which one or more may be causally involved. Damage to buildings from continued blasting nearby, or the occurrence of many occupational disease cases arising from long exposure are examples. In such cases the use of the policy limit per accident is impracticable. It is found more practicable to use as a limit a fixed amount per policy period, usually a year. In place of the fixed amount, an amount that is somewhat less definite and related to the loss ratio of the risk may be used for fairly stable risks. It is obvious that the same amount for a policy limit on a small and a large risk would produce very different results in the limiting effect on the total losses developed with each size of risk. An amount that is many times the expected losses on a small risk might actually be less than the expected losses Oil a large one. Such an amount limit used in the policies would have very little effect on the losses of the small risk and a very limiting effect on the losses of the large risk whic_h it might even restrict to below the normally expected. What should be the relation between the amount limit of a risk and the size of the risk? What are the per risk amount limits for risks of different size that may be said to be equally effective? This is the particular problem which has been treated in detail in Appendix II. Consider two groups of homogeneous risks, designated by Group I and Group II, which differ only in size, all risks within a group being of equal size but those in Group I being smaller than those in Group II, and let it be assumed these groups are adequate in volume. First consider these risks under coverage without policy limit restrictions of any kind, then let the losses under Group I be evaluated on the basis of each risk having a policy limit by which the losses covered are limited to a definite amount AI per policy per year. Let it be found that, if in every policy the losses had been restricted to a maximum amount At, then there
8 8 POLICY LIMITS IN" CASUALTY II~SURANCE would have been r~ of the total losses not covered. In this case let the r~o when expressed decimally be r and be called the pure premium ratio* corresponding to a per risk amount limit AI on a risk of Group I size. If the experience of the risks of Group II could be studied so as to ascertain what amount limit A,x per risk per year would produce the same pure premium ratio r, or what amount limitation per policy is necessary on risks of this size to exclude r% of the total losses from coverage, the amount AlI, corresponding to the pure premium ratio r, would be found to be larger. In Appendix II, one carrier's compensation experience for several states and a few policy years was used in studying the effect of amount limitations on policies. This experience, consisting of some 80,000 risks, was divided into eleven groups according to size of annual premium. Pure premium ratios were then determined for each group for the losses in excess of various loss ratios according to the method explained in a previous paperjsee Proceedings, Volume XIII, pp The results are shown in Table I and are represented graphically in Chart I. From Chart I, per amount policy limits corresponding to various pure premium ratios were determined for each size group of risks. These per amount limits with the corresponding average sized risks were plotted for the selected pure premium ratios as shown in Chart III-A. The carrier's experience was supplemented by using the classification experience of the National Council on Compensation Insurance for policy years , the classification experience for one policy year being considered a unit. These units were separated into eight size groups according to the volume of expected losses. The actual losses of the units were expressed as indices of the expected losses by dividing the policy year pure premiums of each classification by the average pure premium for the five policy year period. For each of the eight size groups, pure premium ratios were calculated which represent the losses of the classifications in excess of selected indices per unit when expressed in terms of the total losses. These ratios are recorded in Table II and are presented graphically in Chart II. Then, by a method similar to that used in treating the carrier's experience in Chart I, per * Pure premium ratio is here used as in a previous paper on Excess Insurance. Proceedings, Vol. XlII, page 165. It refers here to the excluded losses.
9 POLICY LIMITS IN CASUALTY INSURANCE 9 amount limits corresponding to a specific index were determined from Chart II for each loss group. These per amount limits were plotted against the average expected classification losses of the groups and are shown in Chart IILB. It will be noted that, allowing for some fluctuations in Chart III-A, which is based on a rather limited volume of experience, particularly for the smaller risks at the left and for the low pure premium ratios at the top, these amount limits, when plotted, appear to lie along a straight line. The per amount limits in Chart III-B, which is based on larger units of experience, apparently are even more nearly on a straight line. As indicated in Appendix II, these ratios in reality lie on long drawn out curves whose curvature decreases as the size of the unit experience (risk or classification) increases. These curves represent per amount policy limits having the same effectiveness with regard to their associated risks or classifications. That is, they exclude the same proportion of the total losses from coverage by their inclusion in the policy. The curves are convex downward and for the larger units approach radial lines through the origin as shown in Chart IV. The curves labeled R in Chart IV indicate the relation of the per amount limit to the size of the risk for specific ratios of excluded losses to total losses. The per amount limit on a risk corresponding to a definite per amount policy limit factor should vary with the size of the risk not exactly at the same rate but at a somewhat lower rate. Per amount policy limit factors may be shown in a two-way table showing various per amount policy limits at the head of the columns and size of risk groups at the left of the lines, with the corresponding per amount policy limit factors in the body of the table. CO~IBINATION OF POLICY LIMITS Of the four types of policy limits discussed, the per person and per accident are used constantly in certain lines of insurance, the per amount limit is used at times, and the per loss ratio is used rarely. These limits may be used singly or in combination. The question arises as to the relative effectiveness of each type in limiting losses when used in combination.
10 i0 POLICY LIMITS IN CASUALTY INSURANCE No general statement can be made covering all these relations, for they vary by line of insurance and they vary within a line depending upon the size of the limits which are used in the comparison. No data are available for lines of insurance written with policy limits to show what effect the standard per person and per accident limits have on losses. It would seem safe to state, however, that for nearly all' lines the standard limit per person is more effective than the standard limit per accident. When other than the standard limits are compared, the results depend entirely on the particular limits considered. The effect of a combination of per person and per accident policy limits on the experience of an individual risk is at most equal to the sum of the effects of each policy limit separately and at least equal to the more effective of the individual policy limits. The maximum effect of a combination of two effective limits is attained when no elemental part of the experience is affected by both limits. The minimum is obtained when the less effective limit applies only to elements already so restricted through the operation of the other limit that the second becomes non-effective. In general it may be stated that the effect on an aggregate of experience of a combination of limits is, at a maximum, equal to the sum of the individual effects and, at a minimum, equal to the larger of the individual effects. There are certain properties of the types of policy limits which may aid in a general comparison. Specific policy limits per person are equally effective for the small and the large risk. Specific policy limits per accident are not quite equally effective for the small and the large risk but this variation may be disregarded. A specific per amount policy limit is least effective on small risks and most effective on large risks and a specific per loss ratio policy limit is most effective on small risks and least effective on large risks. EFFECT OF POLICY LIMITS ON THE DEVELOPMENT OF CASUALTY INSURANCE It is interesting to speculate on the effect that the presence of policy limits may have had on the development of casualty insurance. With the introduction of insurance there develops a claim consciousness which results in an increase in the loss cost of accidents. It is probable that the presence of policy limits has
11 POLICY LIMITS IN CASUALTY INSURANCE 11 tended to stem the rising cost of severe cases. While no data are available as to the degree in which the upward trend has been retarded, individual cases are known to those familiar with the adjustment of losses where the presence of policy limits has had a marked effect in securing the adjustment of losses within these limits. Also many instances are known where the absence of insurance combined with the low credit standard of the individuals liable for the accidents has prevented the claimants from instituting suits or pressing claim settlements. It is reasonable to conclude from these individual cases that the presence of the policy limits has tended to induce claimants to make settlements which would not have been made under higher limits. In addition to including losses above standard limits in severe cases, there is another respect in which the presence of policy limits higher than standard may influence the cost from the carrier's viewpoint. It is contended by some that the wide variations obtained in jury awards for similar accidents prompt some carriers to settle cases of little merit, but of a nature adapted to appeal to human sympathy, for amounts far beyond a reasonable appraisal for fear that the juries may be moved to give extraordinary amounts. It is claimed that the cost of the presence of higher limits is shown to a large degree, not in the losses extending beyond the standard limits, but in the increased cost of the losses below standard limits due to such settlements. There arises also the question as to the difference, if any, in the type of policyholders who insure for higher limits and for standard limits. Is the assured who is unwilling to take a chance with low limits more conservative generally and is this quality reflected in better environment and methods which produce a better loss ratio? Might not a test which shows a better standard limit loss ratio for higher policy limits be a reflection of a better type of policyholder on the whole under the higher limit policies rather than a lack of evidence of forced settlements for fear of excessive verdicts?
12 , ~.+i 12 POLICY LIMITS IN CASUALTY INSURANCE APPENDIX I. PER PERSON AND PER ACCIDENT LIMIT FACTORS. The policy limit factor is the index which expresses the rate for coverage with specific policy limits in terms of the rate for coverage with standard limits. Since the rates for various policy limits have the same pro rata loading, the policy limit factor may be considered the index number which represents the losses for an aggregate of adequate experience when evaluated under specific policy limits in terms of the losses for the same experience when evaluated under standard policy limits. In considering the properties of policy limit factors this latter view will be taken. The policy limit factor tables may be represented generally as follows :-- L! l l.-t Per Person Policy Limits I l. I i L,~-t I L,, FF 1 im+l... [ Fm~-~l F,~-I F~+~ Where 1, denotes the policy limit per Person, the maximum amount for any one person involved in an accident. L,n denotes the policy limit per accident, the maximum amount for all persons involved in an accident. F~ denotes the policy limit factor corresponding to combined policy limits of 1, per person and L.+ per accident. It and Lt denote standard limits, and the corresponding limit factor F = 1.00.
13 POLICY LIMITS IN CASUALTY INSURANCE 18 It will be assumed in the following that I. and L~ each represent a set of equidistant limits in the table. In the actual tables the limits are taken farther apart as they increase in size. It will also be assumed that in a representative frequency distribution of losses by size for either losses per person or losses per accident some cases will fall within each policy limit interval represented in the table. Under these assumptions it may be shown that these general relations hold :-- F~ +I - F~, < F~- F~ -I F~+I- F~ < F,~- F~ The differences between the members of the inequalities will become too small to express by three decimal places as the limits increase. This accounts in part for the larger intervals between the higher policy limits in the tables in use. If further assumptions are made regarding the frequency of high cost individual cases within a distribution of losses by cost per accident then these general relations follow: 1. If there are relatively more high cost individual cases in accidents as the cost per accident increases then F~ +~ - F,~ > F~, - F,~_~ F~ +1 - F,~ > F,~- F~-I 2. If there is no change in the frequency of high cost individual cases with an increase in cost per accident then F~ +~ - F,~ = F,~ - F~ F~ +~ - F~ ~ F,~ ~ - F~_l It would be expected that there is some positive correlation of high cost individual cases with high cost accidents, particularly at the lower per accident policy limit intervals beyond the standard limit interval. For the cost of accidents in one of these lower cost intervals is in large part due to the presence of a high cost case. If there were a decrease, as seems improbable, in the frequency of high cost individual cases with an increase in high cost accidents, the inequality in the above would be reversed.
14 14 POLICY LII~ITS IN CASUALTY INSURANCE APPENDIX II. PER AMOUNT LIMIT FACTOR The per amount limit factor is the index number which expresses the rate for coverage with a specific per amount limit for the risk in terms of the rate for coverage with standard per amount limits. Assuming the same pro rata expense loading for all per amount policy limits, this is equivalent to an index which expresses the losses for an aggregate of adequate experience when evaluated with a maximum limit of a given amount per policy period in terms of the losses for the same experience when evaluated with a standard amount limit per policy period. There are no data available directly showing the risk experience by policy amount limits for any line of insurance, from which the properties of per amount limit factors could be studied. It is proposed that this problem be approached by using unit experience developed under policies without limits. Two sources of such experiences are readily available. 1. Actual compensation experience for 80,259 policies for all industries from several states and a few policy years as developed by one carrier. 2. National Council on Compensation Insurance classification experience for policy years as compiled in This experience was used by considering each classification in each policy year as though it were an individual policy. Compensation insurance is more standardized than third party insurance and is less subject to extreme fluctuation for that reason. Results obtained from compensation data are not applicable to other lines without modification, nor can the results obtained from classification data be applied directly to risks. The object here is to study the per amount limit factor in relation to small and large units by using the available compensation experience. The changes observed in the effect of the per amount limit factor between the small and the large risk will apply in all probability to other lines of insurance though in different degrees. COMPENSATION EXPERIENCE OF ONE CARRIER A large volume of individual risk experience developed under compensation laws was divided into eleven groups according to size of premium. For each of these groups, pure premium ratios
15 POLICY LIMITS IN CASUALTY INSURANCE 15 were calculated for losses in excess of various selected loss ratios. The procedure was similar to that described in a previous paper in the Proceedings, Volume XIII, pp The pure premium ratios thus calculated, the average premium, and the number of risks for each group are shown in Table I. For each group of risks in Table I, the pure premium ratios for losses in excess of selected loss ratios per risk were plotted against the selected loss ratios as shown in Chart I. It was found expedient to use semi-logarithmic 4-cycle cross section paper in order to place proper stress on the portion of the field desired (i.e., ,0003) within the limits of one sheet. This also has the advantage of larger angles of intersection between the curves and the horizontal lines toward the lower part of the Chart representing the smaller pure premium ratios. The object of Chart I is to show the pure premium ratio corresponding to each selected risk loss ratio for each risk group. The relation between pure premium ratios and selected loss ratios was used in Chart III-A to establish a relation between sizes of risks and per amount limits for risks. For various specific loss ratios corresponding per amount limits were determined from Chart I by applying the specific loss ratios to the average risk premiums; for the losses in excess of such amount limits for each risk would be the same as the losses in excess of the corresponding specific risk loss ratios. The per amount limits as determined were plotted against the corresponding risk premiums for the various pure premium ratios. It will be noted from Chart III-A that, allowing for fluctuations, particularly for the low pure premium ratios which are least reliable, the results appear to lie approximately on straight lines or on long curves. NATIONAL COUNCIL ON COMPENSATION EXPERIENCE The individual risk data of the carrier were supplemented by using the classification data of the National Council on Compensation Insurance for policy years as compiled in The procedure followed in preparing this experience was substantially as given in these items: 1. The experience of one classification for one year was selected as the unit of experience and the expected losses of the unit taken as the measure of size. The whole range of
16 16 POLICY LIMITS IN CASUALTY INSURANCE expected losses 0-$9,000,000 was divided into 56 size groups numbered consecutively. The interval included in each size group was made larger than the interval of the group next below in size according t6 a plan of maintaining roughly the same relative interval throughout, i.e., a constant ratio between the lower and upper limit in each size group. 2. For every classification each policy year payroll was multiplied by the average pure premium for the five year period to determine annual expected losses. Each policy year of the classification was then assigned a size group number from 1 to 56 so that the expected losses fell within the group interval. 3. Each policy year pure premium was divided by the average pure premium for the five year period. The quotient was taken as the index for the given policy year in terms of the average for the period. 4. A rectangular table or cell diagram was formed showing at the top of the columns indices (item 3 above) with.10 intervals and at the left of the lines the size groups (item 1 above). The unit experiences were then entered in the table by placing a dot in the proper rectangle or cell for each, according to the index and size. The result was a scatter diagram in which the dots appeared in a V-shaped form with the apex in the.90 index column and on the last line in the largest size group. The dots in each cell were counted and recorded. 5. The fifty-six consecutive size groups in this table were combined into eight groups except that the lowest size groups were discarded, largely because they contained many cases of exposure not extending over the five year period. 6. Frequency distributions were formed for each of the eight new groups showing the number of units of experience falling into each of the index intervals at the top of the table described in item The frequency distributions (item 6) were graduated by the method given in the Proceedings, Volume VI, page 52, Carver, and their number was extended to 10,000 cases for each group. In the ungraduated distributions there were so few cases that chance fluctuations controlled the extremes. It was the intention, in raising the graduated distributions to 10,000 cases, to extend the distributions so as to include some cases with higher indices, which is equivalent to predicating ratios beyond the actual experience. 8. Each of these new distributions of 10,000 cases was then used to calculate ratios of the losses of the group in excess
WORKERS COMPENSATION GLOSSARY
WORKERS COMPENSATION GLOSSARY ACCIDENT An unplanned and unexpected event which occurs suddenly and at a definite place resulting in injury and/or damage. ACCIDENT FREQUENCY The rate of the occurrence of
More informationMinnesota Workers' Compensation. System Report, 2012. minnesota department of. labor & industry. research and statistics
Minnesota Workers' Compensation System Report, 2012 minnesota department of labor & industry research and statistics Minnesota Workers Compensation System Report, 2012 by David Berry (principal) Brian
More informationDEDUCTIBLE AND EXCESS COVERAGES DEDUCTIBLE AND EXCESS COVERAGES LIABILITY AND PROPERTY DAMAGE LINES, OTHER THAN AUTOMOBILE
DEDUCTIBLE AND EXCESS COVERAGES 115 DEDUCTIBLE AND EXCESS COVERAGES LIABILITY AND PROPERTY DAMAGE LINES, OTHER THAN AUTOMOBILE BY JAMES ~. CAHILL Relatively few risks under the various Liability and Property
More informationMISCELLANEOUS PROPERTY DAMAGE INSURANCE
MISCELLANEOUS PROPERTY DAMAGE INSURANCE 33 MISCELLANEOUS PROPERTY DAMAGE INSURANCE BY S. D. PINNEY Property Damage insurance, as such, needs no introduction to the insurance world, inasmuch as certain
More informationTHE CONTROL OF ACCIDENTS THROUGH WORKMEN'S COMPENSATION RATING
44 THE CONTROL OF ACCIDENTS THE CONTROL OF ACCIDENTS THROUGH WORKMEN'S COMPENSATION RATING BY ROBERT S, HULL Workmen's Compensation is a social service having for its immediate object the care and support
More informationInsurance and the Cost of Insured Losses
RATING BY LAYER OF INSURANCE RUTH E. SALZMANN One of the peculiarities of property and casualty insurance is that losses vary by size depending upon the severity of the accident, occurrence, or illness.
More informationVERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIES, AND HEALTH CARE ADMINISTRATION
VERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIES, AND HEALTH CARE ADMINISTRATION TECHNIQUES TO STABILIZE VERMONT WORKERS COMPENSATION PREMIUM COSTS AND MINIMIZE THE IMPACT OF LARGE CLAIMS Prepared
More informationGLOSSARY OF ACTUARIAL AND RATEMAKING TERMINOLOGY
GLOSSARY OF ACTUARIAL AND RATEMAKING TERMINOLOGY Term Accident Accident Date Accident Period Accident Year Case- Incurred Losses Accident Year Experience Acquisition Cost Actuary Adverse Selection (Anti-Selection,
More informationWorker's Compensation Insurance in Wisconsin THE SYSTEM, THE BENEFITS, THE COSTS A REFERENCE GUIDE FOR EMPLOYERS
Worker's Compensation Insurance in Wisconsin THE SYSTEM, THE BENEFITS, THE COSTS A REFERENCE GUIDE FOR EMPLOYERS This guide is intended to provide a general, non-technical explanation to help employers
More informationAN INTRODUCTION TO PREMIUM TREND
AN INTRODUCTION TO PREMIUM TREND Burt D. Jones * February, 2002 Acknowledgement I would like to acknowledge the valuable assistance of Catherine Taylor, who was instrumental in the development of this
More informationhttp://www.jstor.org This content downloaded on Tue, 19 Feb 2013 17:28:43 PM All use subject to JSTOR Terms and Conditions
A Significance Test for Time Series Analysis Author(s): W. Allen Wallis and Geoffrey H. Moore Reviewed work(s): Source: Journal of the American Statistical Association, Vol. 36, No. 215 (Sep., 1941), pp.
More informationPrivate Motor Insurance Statistics. Private Motor Insurance Statistics
2009 Private Motor Insurance Statistics Contents Executive Summary... 1 1. Introduction... 3 2. General Market Overview... 4 3. Premium Income and Claim Cost Development... 7 3.1 Premium income... 8 3.2
More informationMinnesota Workers' Compensation. System Report, 2011. minnesota department of. labor & industry. research and statistics
Minnesota Workers' Compensation System Report, 2011 minnesota department of labor & industry research and statistics Minnesota Workers Compensation System Report, 2011 by David Berry (principal) Brian
More informationWCB-Alberta. 2014 Premium Rates
WCB-Alberta 2014 Premium Rates Foreword The Alberta Workers Compensation Board sets premium rates annually for each industry. This guide is meant to provide a basic understanding of the process for setting
More informationFINAL RECOMMENDATIONS FOR PROPERTY-CASUALTY INSURANCE COMPANY FINANCIAL REPORTING
FINAL RECOMMENDATIONS FOR PROPERTY-CASUALTY INSURANCE COMPANY FINANCIAL REPORTING Issued by authority of Council January 1990 Canadian Institute of Actuaries 1 Institut Canadien des Actuaires SECTION I
More informationCredibility and Pooling Applications to Group Life and Group Disability Insurance
Credibility and Pooling Applications to Group Life and Group Disability Insurance Presented by Paul L. Correia Consulting Actuary paul.correia@milliman.com (207) 771-1204 May 20, 2014 What I plan to cover
More informationCOMMERCIAL ACCIDENT AND HEALTH INSURANCE FROM THE STANDPOINT OF THE REINSURANCE COMPANY
COMI~ERCIAL ACCIDENT AND HEALTI{ INSURANCE 808 COMMERCIAL ACCIDENT AND HEALTH INSURANCE FROM THE STANDPOINT OF THE REINSURANCE COMPANY BY HOWARD G. CRANE Commercial accident and health premiums written
More informationMinnesota Workers' Compensation. System Report, 2006. minnesota department of. labor & industry. Policy Development, Research and Statistics
Minnesota Workers' Compensation System Report, 2006 minnesota department of labor & industry Policy Development, Research and Statistics Minnesota Workers Compensation System Report, 2006 by David Berry
More informationWill No-Fault Insurance Cost More Or Less?
Catholic University Law Review Volume 21 Issue 2 Winter 1972 Article 13 1972 Will No-Fault Insurance Cost More Or Less? C. Arthur Williams Jr. Follow this and additional works at: http://scholarship.law.edu/lawreview
More informationTHIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY PRINTERS ERRORS AND OMISSIONS LIABILITY COVERAGE
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY PRINTERS ERRORS AND OMISSIONS LIABILITY COVERAGE This endorsement modifies insurance provided under the following: BUSINESSOWNERS LIABILITY
More informationMinnesota Workers' Compensation Assigned Risk Plan. Financial Statements Together with Independent Auditors' Report
Minnesota Workers' Compensation Assigned Risk Plan Financial Statements Together with Independent Auditors' Report December 31, 2012 CONTENTS Page INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS: Balance
More informationEDUCATIONAL NOTE VALUATION OF POLICY LIABILITIES P&C INSURANCE CONSIDERATIONS REGARDING CLAIM LIABILITIES AND PREMIUM LIABILITIES
EDUCATIONAL NOTE Educational notes do not constitute standards of practice. They are intended to assist actuaries in applying standards of practice in specific matters. Responsibility for the manner of
More informationGlossary of Insurance Terms: (obtained from website: http://www.iii.org/individuals/glossary/alfa.l/)
Glossary of Insurance Terms: (obtained from website: http://www.iii.org/individuals/glossary/alfa.l/) ACTUAL CASH VALUE A form of insurance that pays damages equal to the replacement value of damaged property
More informationThis year s report covers the following medical malpractice insurance areas:
State of West Virginia Medical Malpractice Report on Insurers with over 5% Market Share November, 2004 Provided by the Office of the West Virginia Insurance Commission Introduction The West Virginia Offices
More informationMEDICAL MALPRACTICE CLOSED CLAIM DATA COLLECTION UNDER CONNECTICUT PUBLIC ACT 05-275
MEDICAL MALPRACTICE CLOSED CLAIM DATA COLLECTION UNDER CONNECTICUT PUBLIC ACT 05-275 Introduction: Public Act 05-275 (the Act ) requires Medical Malpractice insurance providers to report closed claims
More informationINS 3101: PRINCIPLES OF RISK MANAGEMENT AND INSURANCE. By 5315045 Pichaya Sadudeechevin
INS 3101: PRINCIPLES OF RISK MANAGEMENT AND INSURANCE By 5315045 Pichaya Sadudeechevin Chapter 1: Risk and Its treatment What is risk? Risk is uncertainty concerning the occurrence of loss. - Objective
More informationThe Effects of Tort Reforms on the Frequency and Severity of Medical Malpractice Claims
The Ohio State University Knowledge Bank kb.osu.edu Ohio State Law Journal (Moritz College of Law) Ohio State Law Journal: Volume 48, Issue 2 (1987) 1987 The Effects of Tort Reforms on the Frequency and
More informationWORKERS COMPENSATION RATEMAKING PROCESSES OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC.
WORKERS COMPENSATION RATEMAKING PROCESSES OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC. JANUARY 2014 CONTENTS 1. Introduction... 1 Scope... 1 Overview of the NCCI Ratemaking Methodology... 2
More information2. Simple Linear Regression
Research methods - II 3 2. Simple Linear Regression Simple linear regression is a technique in parametric statistics that is commonly used for analyzing mean response of a variable Y which changes according
More informationNEW YORK CONSTRUCTION CERTIFICATE OF LIABILITY INSURANCE ADDENDUM
AGENCY CUSTOMER ID: NEW YORK CONSTRUCTION CERTIFICATE OF LIABILITY INSURANCE ADDENDUM DATE (MM/DD/YYYY) THIS ADDENDUM SUMMARIZES SOME OF THE POLICY PROVISIONS IN THE REFERENCED INSURANCE POLICIES AND IS
More informationClaim Estimates and WorkSafe Premiums
Claim Estimates and WorkSafe Premiums Introduction For employers with annual rateable remuneration of over $200,000 premiums for WorkSafe insurance are calculated taking into account their claims performance
More informationReport to the 79 th Legislature. Use of Credit Information by Insurers in Texas
Report to the 79 th Legislature Use of Credit Information by Insurers in Texas Texas Department of Insurance December 30, 2004 TABLE OF CONTENTS Executive Summary Page 3 Discussion Introduction Page 6
More informationEDUCATION AND EXAMINATION COMMITTEE SOCIETY OF ACTUARIES RISK AND INSURANCE. Copyright 2005 by the Society of Actuaries
EDUCATION AND EXAMINATION COMMITTEE OF THE SOCIET OF ACTUARIES RISK AND INSURANCE by Judy Feldman Anderson, FSA and Robert L. Brown, FSA Copyright 25 by the Society of Actuaries The Education and Examination
More informationNEW JERSEY COMPENSATION RATING & INSPECTION BUREAU EXPLORING THE COST OF A WORKERS COMPENSATION INSURANCE POLICY
NEW JERSEY COMPENSATION RATING & INSPECTION BUREAU EXPLORING THE COST OF A WORKERS COMPENSATION INSURANCE POLICY 2007 INTRODUCTION This booklet provides a basic explanation of how the cost of a New Jersey
More informationRE: Disclosure Requirements for Short Duration Insurance Contracts
INS-14 November 21, 2014 Mr. Russell G. Golden Chairman Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, Connecticut 06856-5116 RE: Disclosure Requirements for Short Duration Insurance
More informationSECTION 3 AWARD AND EXECUTION OF CONTRACT
SECTION 3 AWARD AND EXECUTION OF CONTRACT 3.01 CONSIDERATION OF BIDS: After the Proposals are opened and read, the approximate estimated quantity of each item multiplied by the unit price bid for that
More informationChapter 26 Financial Operations of Private Insurers
Chapter 26 Financial Operations of Private Insurers Overview This chapter examines the financial operations of insurance companies. In the first portion of the chapter, two important financial statements,
More informationSOME OBSERVATIONS ON ACCIDENT AND HEALTH INSURANCE.
OBSERVATIONS ON ACCIDENT AND HEALTH INSURANCE 47 SOME OBSERVATIONS ON ACCIDENT AND HEALTH INSURANCE. BY THOMAS F. TARBELL The several phases of the subject of accident and health insurance have been rather
More informationYour Exam Content Outline
Your Exam Content Outline The following outline describes the content of one of the Wisconsin insurance examinations. The outlines are the basis of the examinations. The examination will contain questions
More informationEITF ABSTRACTS. Title: Accounting for Claims-Made Insurance and Retroactive Insurance Contracts by the Insured Entity
EITF ABSTRACTS Issue No. 03-8 Title: Accounting for Claims-Made Insurance and Retroactive Insurance Contracts by the Insured Entity Dates Discussed: March 13 14, 1986; May 1, 1986; July 24, 1986; May 19
More informationVOL. XLVIII, Part I No. 89 PROCEEDINGS. May 3-5, 1961 RESERVES FOR REOPENED CLAIMS ON WORKMEN'S COMPENSATION INTRODUCTION
VOL. XLVIII, Part I No. 89 PROCEEDINGS May 3-5, 1961 RESERVES FOR REOPENED CLAIMS ON WORKMEN'S COMPENSATION BY RAFAL J. BALCAREK INTRODUCTION Reopening of closed claims occurs in most lines of insurance,
More informationChapter 1 Insurance Concepts & Principles
Chapter 1 Chapter Objectives Your learning objectives are as follows: Understand the mechanism of insurance. Understand the difference between property and casualty insurance. Learn the parts of the insurance
More informationPROBLEMS IN MOTOR INSURANCE--CLAIM. NORTON E. MASTERSON Stevens Point, Wisconsin, (U.S.A.)
PROBLEMS IN MOTOR INSURANCE--CLAIM RESERVES NORTON E. MASTERSON Stevens Point, Wisconsin, (U.S.A.) In his comprehensive paper entitled "A General Survey of Problems Involved in Motor Insurance", Dr. Carl
More informationWISCONSIN EXPERIENCE RATING PLAN MANUAL
WISCONSIN EXPERIENCE RATING PLAN MANUAL Effective January 1, 2005 issued by: 20700 Swenson Drive, Suite 100 Waukesha, WI 53186 Contains Materials Copyrighted by the National Council on Compensation Insurance,
More information2016 ASSESSMENT RATES
2016 ASSESSMENT RATES FOREWORD WorkSafeNB determines employers assessment rates annually. Several factors influence rates, such as WorkSafeNB s current financial obligations, the prevailing economic environment,
More informationWorkers Compensation and Employers Liability (Lecture 13)
Workers Compensation and Employers Liability (Lecture 13) Overview of Lecture 13 (Chapter 9, CPCU 4) I. Introduction II. III. IV. Employers Liability Under Common Law State Workers Compensation Laws Workers
More informationNON-RANDOM ACCIDENT DISTRIBUTIONS AND THE POISSON SERIES
NON-RANDOM ACCIDENT DISTRIBUTIONS AND THE POISSON SERIES 21 NON-RANDOM ACCIDENT DISTRIBUTIONS AND THE POISSON SERIES BY JOHN CARLETON In recent years several papers have appeared in the Proceedings in
More informationWorkers Compensation and Employers Liability
Workers Compensation and Employers Liability Overview of Chapter 9, CPCU 4 I. Introduction II. III. IV. Employers Liability Under Common Law State Workers Compensation Laws Workers Compensation and Employers
More informationDeclarations. INSU 2500 Chapter 9 CHAPTER 9. Common Elements of Insurance Contracts. Insuring Agreement Example
Declarations INSU 2500 Chapter 9 October 10, 2006 Facts of Policy Usually first page of an insurance contract contains such things as: Identifies the insurance company Identifies the named insured Policy
More informationDETERMINING ULTIMATE CLAIM LIABILITIES FOR HEALTH INSURANCE COVERAGES
200 DETERMINING ULTIMATE CLAIM LIABILITIES FOR HEALTH INSURANCE COVERAGES EMIL J. STRUG I. INTRODUCTION The purpose of this paper is to add another chapter to the fund of knowledge being accumulated on
More informationFAIR TRADE IN INSURANCE INDUSTRY: PREMIUM DETERMINATION OF TAIWAN AUTOMOBILE INSURANCE. Emilio Venezian Venezian Associate, Taiwan
FAIR TRADE IN INSURANCE INDUSTRY: PREMIUM DETERMINATION OF TAIWAN AUTOMOBILE INSURANCE Emilio Venezian Venezian Associate, Taiwan Chu-Shiu Li Department of Economics, Feng Chia University, Taiwan 100 Wen
More informationCOMMERCIAL PROFESSIONAL LIABILITY COVERAGE FORM
COMMERCIAL PROFESSIONAL LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout
More informationRISK MODIFICATION PLANS
Amended Regulation 5-1-11 RISK MODIFICATION PLANS Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Authority Basis and Purpose Rules Enforcement Severability Dissemination
More informationCommon Tools for Displaying and Communicating Data for Process Improvement
Common Tools for Displaying and Communicating Data for Process Improvement Packet includes: Tool Use Page # Box and Whisker Plot Check Sheet Control Chart Histogram Pareto Diagram Run Chart Scatter Plot
More informationANALYSIS OF PROPOSED BILLS TO REFORM THE WORKERS COMPENSATION SYSTEM
ANALYSIS OF PROPOSED BILLS TO REFORM THE WORKERS COMPENSATION SYSTEM Part O of Senate Bill 2605 / Assembly 3005, which is part of the proposed budget bill introduced by Governor Cuomo proposes to reform
More informationCOMMERCIAL EXCESS LIABILITY COVERAGE FORM
COMMERCIAL EXCESS LIABILITY COVERAGE FORM Each section in this Coverage Form may contain exclusions, limitations or restrictions of coverage. Please read the entire Coverage Form carefully to determine
More informationOREGON MUTUAL INSURANCE GROUP MANUFACTURED HOME POLICY PROGRAM INDEX
INDEX General Instructions... MH-1 Basic Coverages and Limit of Liability... MH-1 Description of Coverage... MH-1 Deductible... MH-1 Application... MH-2 Binders... MH-2 Replacement Value Coverage C (H109)...
More informationRatemaking Methods in Insurance Operations Part 2. Factors to Consider When Developing Credible Premiums
Ratemaking Methods in Insurance Operations Part 2 Factors to Consider When Developing Credible Premiums Factors to Consider in the Delay of Data Collection and use of Information: Delays in reflecting
More informationStatistical Modeling and Analysis of Stop- Loss Insurance for Use in NAIC Model Act
Statistical Modeling and Analysis of Stop- Loss Insurance for Use in NAIC Model Act Prepared for: National Association of Insurance Commissioners Prepared by: Milliman, Inc. James T. O Connor FSA, MAAA
More informationAN ANALYSIS OF INSURANCE COMPLAINT RATIOS
AN ANALYSIS OF INSURANCE COMPLAINT RATIOS Richard L. Morris, College of Business, Winthrop University, Rock Hill, SC 29733, (803) 323-2684, morrisr@winthrop.edu, Glenn L. Wood, College of Business, Winthrop
More informationA Background to Insurance, Professional Indemnity & Risk Management for Architects
A Background to Insurance, Professional Indemnity & Risk Management for Architects (Note: Several diagrams in the original are not reproduced here) History Modern living and business activities in general
More information2015 ASSESSMENT RATES
2015 ASSESSMENT RATES FOREWORD WorkSafeNB determines employers assessment rates annually. Several factors influence rates, such as WorkSafeNB s current financial obligations, the prevailing economic environment,
More informationStudy into average civil compensation in mesothelioma cases
Research Summary Study into average civil compensation in mesothelioma cases By John Forth, Hilary Metcalf, Nick Coleman, Pamela Meadows, Max King and Leila Tufekci Key findings 1 The analysis presented
More informationChapter 9 Experience rating
0 INTRODUCTION 1 Chapter 9 Experience rating 0 Introduction The rating process is the process of deciding on an appropriate level of premium for a particular class of insurance business. The contents of
More information6.4 Normal Distribution
Contents 6.4 Normal Distribution....................... 381 6.4.1 Characteristics of the Normal Distribution....... 381 6.4.2 The Standardized Normal Distribution......... 385 6.4.3 Meaning of Areas under
More informationSimple Random Sampling
Source: Frerichs, R.R. Rapid Surveys (unpublished), 2008. NOT FOR COMMERCIAL DISTRIBUTION 3 Simple Random Sampling 3.1 INTRODUCTION Everyone mentions simple random sampling, but few use this method for
More informationA Guide to Legal Malpractice Insurance
A Guide to Legal Malpractice Insurance Legal Malpractice Insurance Terms Admitted Carrier A carrier that is licensed and authorized to write insurance in a particular state using rates, rules and forms
More informationAPPLICATION FOR SELF INSURANCE
Date submitted STATE OF UTAH UTAH LABOR COMMISSION DIVISION OF INDUSTRIAL ACCIDENTS APPLICATION FOR SELF INSURANCE Name: FEIN# Applicant Organization Name hereby applies for the privilege of being a self-insurer
More informationARTICLE VII. RISK MANAGEMENT PROGRAM
ARTICLE VII. RISK MANAGEMENT PROGRAM Sec. 2-226. Program created; coverages provided. There is hereby authorized and created a risk management program for the city. The purpose of this risk management
More informationStatement on Genetic Testing and Insurance
Statement Statement on Genetic Testing and Insurance June 2014 Document 214073 Ce document est disponible en français 2014 Canadian Institute of Actuaries STATEMENT ON GENETIC TESTING AND INSURANCE This
More informationCHAPTER 1. Wyoming Workers Compensation. Workers Compensation Programs Benefit Injured Workers and Employers
CHAPTER 1 Wyoming Workers Compensation Workers Compensation Programs Benefit Injured Workers and Employers Injured workers receive medical and lost wage benefits, regardless of fault. Employers receive
More informationA Review Of The LARGEST CLAIMS Insurance Portfolio (1)
A STUDY IN CREDIBILITY BETTERMENT THROUGH EXCLUSION OF THE LARGEST CLAIMS MARCEL DERRON Zurich It is often found even today in Europe that for certain statistical investigations the conclusion is drawn
More informationUnited States General Accounting Office Testimony
United States General Accounting Office Testimony For Release on Delivery Expected at 2:00 p.m. EST Wednesday June 22, 1988 Comparison of Amtrak Employee Injury Settlement Costs Under the Federal Employers'
More informationWorkers Compensation. Are Costs Controllable?
Workers Compensation Are Costs Controllable? Your WC Risk Costs Has your WC premium gone down in recent years? Has your WC premium stayed the same? Has your WC premium gone up in recent years? Are you
More informationWASHINGTON INSURANCE GUARANTY ASSOCIATION ACT
WASHINGTON INSURANCE GUARANTY ASSOCIATION ACT Section 48.32.010. Purpose 48.32.020. Scope 48.32.030. Definitions 48.32.040. Creation of the association-required accounts 48.32.050. Board of directors 48.32.060.
More informationA Statistical Analysis of the Relationship Between Credit History and Insurance Losses
A Statistical Analysis of the Relationship Between Credit History and Insurance Losses Prepared by: Bureau of Business Research McCombs School of Business The University of Texas at Austin March 2003 i
More informationCommon Core Unit Summary Grades 6 to 8
Common Core Unit Summary Grades 6 to 8 Grade 8: Unit 1: Congruence and Similarity- 8G1-8G5 rotations reflections and translations,( RRT=congruence) understand congruence of 2 d figures after RRT Dilations
More informationUsing Independent Contractors: A Guide to IRS and Insurance Guidelines
Using Independent Contractors: A Guide to IRS and Insurance Guidelines Table of Contents About this guide.................................. 1 Defining an independent contractor and their............ 2
More informationDCRB DELAWARE COMPENSATION RATING BUREAU, INC.
DCRB DELAWARE COMPENSATION RATING BUREAU, INC. DELAWARE WORKERS COMPENSATION CLASSIFICATION PLAN OVERVIEW INTRODUCTION THE PURPOSE OF THIS DOCUMANT, PREPARED BY THE DELAWARE COMPENSATION RATING BUREAU
More informationPrinciples of Risk and Insurance. Introduction to the Principles of Risk and Insurance
Principles of Risk and Insurance Introduction to the Principles of Risk and Insurance We are exposed to many situations that many cause a loss (perils). The primary purpose of insurance is to provide economic
More informationThe much anticipated University of Texas study on the relationship of credit history and insurance losses has just been released.
March 7, 2003 The much anticipated University of Texas study on the relationship of credit history and insurance losses has just been released. As expected, the study analyzed a large random sample of
More informationFinal. Actuarial Standards Board. July 2011. Document 211070. Ce document est disponible en français 2011 Canadian Institute of Actuaries
Final Final Standards Standards of Practice for the Valuation of Insurance Contract Liabilities: Life and Health (Accident and Sickness) Insurance (Subsection 2350) Relating to Mortality Improvement (clean
More informationWORKERS COMPENSATION CLAIM COSTS AND TRENDS IN NEW JERSEY
Consulting Actuaries WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN NEW JERSEY Scott J. Lefkowitz, FCAS, MAAA, FCA October 2015 CONTENTS Introduction... 1 Claim Frequency... 3 Introduction... 3 Frequency
More informationCash Flow and Accounts Receivable Management for Dialysis
Dialysis & Transplantation, Volume 13, Number 4, April 1984, p. 201 Cash Flow and Accounts Receivable Management for Dialysis John A. Sargent, PhD, President; Albert Grutze, Systems Manager, Quantitative
More information2007 Casualty Loss Reserve Seminar San Diego, CA
Practical Considerations in Medical Malpractice Reserving 2007 Casualty Loss Reserve Seminar San Diego, CA September 10, 2007 Jeremy Brigham, FCAS, MAAA 2005 Towers Perrin Towers Perrin Setting the Stage:
More information16 LC 37 2118ER A BILL TO BE ENTITLED AN ACT BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
Senate Bill 347 By: Senator Bethel of the 54th A BILL TO BE ENTITLED AN ACT 1 2 3 4 5 6 To amend Title 33 of the Official Code of Georgia Annotated, relating to insurance, so as to provide for extensive
More informationMaryland Insurance Administration s 2005 Report on the Availability and Affordability of Health Care Medical Professional Liability Insurance in
Maryland Insurance Administration s 2005 Report on the Availability and Affordability of Health Care Medical Professional Liability Insurance in Maryland November, 2005 Maryland Insurance Administration's
More informationLife-insurance and Annuities on United States Lives, 1935-43
Life-insurance Annuities on United States Lives, 95- LIFE INSURANCE AND ANNUITIES issued by insurance companies provide a medium for budgeting current income for protection against income losses due to
More informationNEW MEXICO SELF-INSURERS' FUND WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY PLAN
NEW MEXICO SELF-INSURERS' FUND WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY PLAN In return for the payment of the premium and subject to all terms of this Policy, we agree with you as follows. GENERAL
More informationConsiderations on the development of frequency and severity of MTPL losses in Italy
Considerations on the development of frequency and severity of MTPL losses in Italy Armin Dahr MRI Reinsurance Forum, 2 nd April 2014 Agenda Development of MTPL claims frequency in Italy Inflation of severe
More informationECONOMIC ANALYSIS OF CLAIM COSTS
ECONOMIC ANALYSIS OF CLAIM COSTS Prepared by Associated Economic Consultants Ltd. August 30, 2000 Table of Contents 1. INTRODUCTION...1 FIGURE 1...4 2. DEMOGRAPHIC AND ECONOMIC FACTORS...5 2.1 Population,
More informationthe compensation myth
the compensation myth The Compensation Myth It is common to hear stories of the Compensation Culture or claims that Britain is becoming Risk Averse as a result of people claiming compensation. The truth
More informationRe: Amendment to Professional Liability Insurance Policy Wordings
October 31, 2014 To: All Policyholders of Pro-Demnity Insurance Company From: Byron Treves, President & C.E.O. Re: Amendment to Professional Liability Insurance Policy Wordings Impacts policyholders that
More informationCITY COUNTY INSURANCE SERVICES TRUST WORKERS' COMPENSATION COVERAGE AGREEMENT
CITY COUNTY INSURANCE SERVICES TRUST WORKERS' COMPENSATION COVERAGE AGREEMENT Various provisions of this agreement restrict coverage. Read the entire coverage agreement carefully to determine rights, duties,
More informationLIQUOR LIABILITY COVERAGE FORM
COMMERCIAL GENERAL LIABILITY CG 00 34 12 07 LIQUOR LIABILITY COVERAGE FORM THIS FORM PROVIDES CLAIMS-MADE COVERAGE. PLEASE READ THE ENTIRE FORM CAREFULLY. Various provisions in this policy restrict coverage.
More informationModule 2: Introduction to Quantitative Data Analysis
Module 2: Introduction to Quantitative Data Analysis Contents Antony Fielding 1 University of Birmingham & Centre for Multilevel Modelling Rebecca Pillinger Centre for Multilevel Modelling Introduction...
More information2 Appendix 2. Insurance Transactions and Positions, and Pension Schemes. Insurance Transactions and Positions APPENDIX.
2 Appendix 2 APPENDIX Transactions and Positions, and Pension Schemes Transactions and Positions Introduction A2.1 Over the lifetime of insurance contracts, insurance companies produce services to their
More informationA REVIEW OF CURRENT WORKERS COMPENSATION COSTS IN NEW YORK
Consulting Actuaries A REVIEW OF CURRENT WORKERS COMPENSATION COSTS IN NEW YORK Scott J. Lefkowitz, FCAS, MAAA, FCA CONTENTS Introduction... 1 Summary of the 2007 Legislation... 3 Consequences of the 2007
More information