# Lesson 2 Introduction to Rates

Save this PDF as:

Size: px
Start display at page:

## Transcription

1 Lesson 2 Introduction to Rates 1. Objective The objective of this lesson is to give a description of how workers compensation rates are determined. Ratemaking is certainly not easy, but the goal of this lesson is to make the basic ideas used in pricing workers compensation coverage more familiar and understandable. 2. Introduction to Rates The ratemaking process - the pricing of workers compensation coverage - is a technical function, traditionally the domain of specialized technicians called actuaries. Actuaries are focused on concepts rather than strict mathematical formulas. Rates are mathematically based, producing an objective pricing system. 3. Introduction to Rates The employer s annual payroll (in \$100 units) is multiplied by a price, or manual rate, to determine the annual premium contribution required to fund the benefit system. What does the rate cover? The product provided by workers compensation is security - in the form of weekly benefits paid directly to the injured worker, and in the form of payment to doctors, hospitals, and others for medical and rehabilitative services. The payments represent the product costs to the insurance carrier. 4. Introduction to Rates Rates for workers compensation coverage must: Provide sufficient funds to pay for benefits Provide sufficient funds to operate the system that will deliver these benefits The funds needed to deliver these benefits are obtained through the Expense Allowance.

2 Business Overhead = Expense Allowance The expenses include: Acquisition General Premium Taxes Claims Adjustment Contingency and Profit 5. Introduction to Rates Workers Compensation is a prefunded system. The premiums from policies written during a given year are intended to meet all future claim payments made under these policies. This prefunded system is contrary to the usual payment for product norm. Insurance is a business, and no business enterprise will knowingly assume a risk without an incentive to do so. Accordingly, it is necessary that the price for coverage provide such an incentive. Premiums are paid up front, while benefit payments are made over a period of years. This gives the carrier an interest-earning opportunity. This investmentearning potential provides the true incentive for writing this insurance, and provides the reward for assuming the risk. 6. Introduction to Rates What is meant by the phrase Premium Level? The book price, or manual rate, is the cost of workers compensation insurance per \$100 of payroll. A single price for a state does not exist. There is a specific price or rate for each of the approximately 600 employment classifications, with each classification representing a specific activity. (For more information regarding classifications, please see the Introduction to Classification lesson.)

3 7. Introduction to Rates Insurance, as a product, is a promise to pay. The cost of the product is the sum of the liabilities incurred when the promise was made. Insurance is unusual as a product - we set the price before we know the cost! 8. Introduction to Rates The Ratemaker s Dilemma To price with a prefunded system, one must project benefit and expense costs in advance. Ratemakers face a difficult problem. They must decide in the year 2002 how many dollars will be needed for claims covered by policies written in Introduction to Rates A mistake in the calculation of the starting point will nullify the sophisticated calculations later (and impede reaching the final destination). Determining our starting point begins with Data Validation. All NCCI rates and loss costs are based on: actual premium loss cost payroll loss experience All reported to us by insurance carriers.

4 10. Data It is fundamental that, in order to make a premium estimate, data from the most recent past must be used. It is the best indicator of what is expected during the period the rates are in effect. NCCI, as the licensed statistical agent for workers compensation in most states, collects data periodically from its member insurance companies. 11. Data Types of New Data: Statewide Financial Data to determine what state average price level change is needed Statistical Plan or Policy-by-Policy Data 12. Data to determine how the average price change should be distributed The state s financial data is sent to NCCI in response to periodic data requests. The Workers Compensation Statistical Plan (WCSP) contains detailed policy information. First, the financial data is used to determine whether the overall level of premium in the state is too high or too low. Then, the highly detailed statistical plan data is used to apportion the average price change among the various work classifications. 13. Distribution of Overall Rate Level Notes on the Credibility of Data: If the volume of business is small, the recent experience may have little credibility the data is too limited from which to draw conclusions. The greater the volume of data available means the greater the reliability for predicting future occurrences and setting prices.

5 14. Data NCCI expends a considerable amount of effort validating the data making certain that the data it uses is accurate. NCCI is licensed in more than three dozen jurisdictions NCCI has approximately 1000 member companies These companies write over 1,300,000 policies annually Consider that each member submits many reports for each state it does business in. That is a lot of reports and data for NCCI to review! 15. Data When validating the data, two types of Actuarial Edits are discovered: Reconciliation Edits Consistency Edits For Reconciliation: NCCI compares data with annual statements and insurance expense exhibits. Errors are reconciled by checking with the insurance company to verify the reported results. For Consistency, we collect: accident year information policy year information insurance expense exhibit data calendar year information

6 16. Financial Data The financial data we collect covers several time spans, including: policy year calendar year calendar-accident year Policy year data is the aggregate experience of a specific group of policies. EXAMPLE: Policy Year Financial Data Policy Coverage Begins Coverage Ends A (first) 01/01/ /01/2003 B 03/07/ /07/2003 C 05/01/ /01/2003 D 08/12/ /12/2003 E (last) 12/31/ /31/2003 Time Span for Policy Year 2002 Experience (Diagram that shows the policies from page 16 covering 24 months.) 18. Financial Data Calendar year data groups financial transactions by sorting the date on which they took place. Calendar Year 2002 Time Span for Calendar Year 2002 Experience: 1/1/ /31/2002 First Transaction Last Transaction Occurs Occurs

7 19. Financial Data Calendar-accident year refers to: calendar - refers to premiums being organized by transaction date accident - refers to benefit claim costs being organized by the date the accident took place Calendar-accident year data is used in the pricing of workers compensation insurance. 20. Financial Data Adjustments to Policy Year Data Premium: Effect of recent price changes Additional premium development (e.g. from late audits) Adjustments to Benefit Costs: Recent statutory benefit changes Additional benefit cost development 21. Financial Data Adjusting benefit claim costs to current law level: Benefit claim costs are adjusted to reflect cost of statutory benefit changes Adjusting benefit claim costs by a development factor, such as: 1. Incurred Benefit Costs = Amount Paid + Amount Still Owed 2. Incurred Benefit Costs = Amount Paid + Amount Outstanding 3. Incurred Benefit Costs = Amount Paid + Amount Reserved

8 22. The Test for Rate Adequacy Once all adjustments are made, the rates are tested for adequacy. The test for adequacy may be viewed as placing income and outgo on a scale to see if the two are in balance. The example shown on the next page uses data that has already been actuarially adjusted the premium expected to be collected is based upon the current rate level, and the benefits expected to be incurred are based upon the current benefit level. 23. The Test for Rate Adequacy Example 1 Current Rates too high Premium level decrease is indicated Example 2 Current Rates too low Premium level increase is indicated Example 3 Goal is achieved when funding system is in balance 24. Rate Adequacy Through NCCI ratemaking techniques, we can obtain a good indication of the ultimate value of the losses. Policies extend for a year - so rate levels overlap. To set prices that will adequately cover that length of time, we must determine: are we accelerating? are we decelerating? and how fast?

9 25. Rate Adequacy The result is called a Trend Factor. The factors measured are: payroll levels premiums benefits medical costs 26. The Trend Factor The Trend Factor Reflects: Premium Changes in Payroll Benefit Cost Changes in duration of claims Changes in the frequency of claims Inflation rate The trend factor is based upon a comparison of movements in benefit costs with movements in payroll. The trend factor accounts for anticipated movements in payrolls and benefit costs. 27. The Trend Factor Trend Analysis reveals benefit costs are growing faster than payrolls. The trend factor will show an increase. Trend Analysis reveals payrolls are growing faster than benefits. The trend factor will show a decrease.

10 28. Rate Adequacy Workers Compensation also factors in likely occurrences affecting losses and expenses for the year. In navigation, this compares to Dead Reckoning - the navigator notes the initial position and the direction to go to reach the final destination. However - how do you account for drift? (The changes that occur along the way.) In Workers Compensation we use actuarial science to adjust for the drift. We estimate the likely course of future events and account for them. If NCCI s actuarial calculations are correct - the insurer will have adequate premium to cover the risk. 29. Rate Adequacy In some states, NCCI prepares a full schedule of rates. These rates are then filed with regulatory authorities and are available to carriers. In other states, NCCI prepares data on cumulative loss costs. The individual insurance companies then make adjustments reflecting their own expenses. Each company must then file a schedule of rates with the regulatory authorities.

11 30. Rate Adequacy In administered pricing states those where full rates are developed by NCCI - assessing costs begins with overhead. Overhead includes the cost of: issuing the policy servicing the insured providing loss prevention activities auditing payrolls settling claims defending the insured in court Five categories of business overhead expenses are measured: acquisition costs and general expenses overhead and capital expenditures premium taxes claims adjustment expenses contingencies profit In a loss cost environment, NCCI does not address this issue. It is done by the individual insurer. 31. Rate Adequacy Establishing expense levels is difficult. Percentages of premium for expenses will differ. However, the system has been refined to account for this cost. 32. Rate Adequacy The amount available to pay losses is referred to as the balance point. These dollars pay for: medical costs vocational and physical rehabilitation income to the injured worker Actual losses divided by premium is the actual cost (or loss) ratio.

12 33. Rate Adequacy Determining projected cost ratio involves adjustments to actual losses. This is where the actuaries play their largest part. First They evaluate historical records on the basis of current reality. Second They audit workers compensation after the conclusion of the policy year. Third They determine any loss development. The premium collected must be sufficient to pay all the losses, even though many workers compensation claims are paid over a period of years. 34. Rate Adequacy Question: Why not use the losses already paid to determine rates? Answer: The losses already paid don t correct for the drift. Paid losses are a reliable guide only in a completely stable environment which doesn t exist in the real world. Paid losses must be weighed with: benefit changes court decisions industrial accident board actions other influences on payment patterns 35. Rate Adequacy To further adjust rates, we evaluate changes in statutory benefit structures. We also use claim distributions to tell us: what proportion of each kind of injury has been encountered what the claims cost under the old structure what the claims are likely to cost under the new structure

13 36. Rate Adequacy The projected cost ratio is compared to the balance point. If the cost ratio is lower than the balance point - rates or loss costs are decreased. If the cost ratio is greater than balance point - rates or loss costs are increased. 37. Distribution of Overall Rate Level The overall rate change is simply the average change needed to generate the proper premium for the entire state. We then need to calculate the rates or loss costs for each classification. Another two-step process is required. First, we calculate the needed change by Industry Group. The adjustment computed for each industry group is still an average. It represents the average change that all classifications in that group receive. 38. Distribution of Overall Rate Level The second step is to distribute the average industry group changes to the individual classifications. The manual rate reflects the exposure common to the business described. The classification s rate represents the average behavior of all members of that class. 39. Distribution of Overall Rate Level Each NCCI rate or loss cost filing is our best estimate of the needed rate or loss cost level, whether it be an increase or a decrease, using informed actuarial judgment. When the filing is ready, it is submitted to the insurance department according to statutory requirements. Then the course is set for next year s Workers Compensation Ratemaking Voyage!

### MINNESOTA AGGREGATE FINANCIAL DATA REPORTING GUIDEBOOK. Annual Calls for Experience Valued as of December 31, 2015

MINNESOTA AGGREGATE FINANCIAL DATA REPORTING GUIDEBOOK Annual Calls for Experience Valued as of December 31, 2015 11/5/2015 ANNUAL CALLS FOR EXPERIENCE As the licensed Data Service Organization in Minnesota,

### WORKERS 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

### NEW 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

### Workers Compensation Ratemaking An Overview

Workers Compensation Ratemaking An Overview Insurance Company Perspective Andrew Doll, QBE Regional Insurance Company CAS 2010 Ratemaking and Product Management Seminar Chicago, Illinois - March 16, 2010

### At NCCI, producing and delivering

AN OVERVIEW OF DATA QUALITY by Michael B. Spears Chief Officer NCCI Holdings, Inc. ENSURING DATA QUALITY ACROSS THE WORKERS COMPENSATION INDUSTRY REPRESENTS A TREMENDOUS INVESTMENT OF TIME, RESOURCES,

### VERMONT 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

### Session 25 L, Introduction to General Insurance Ratemaking & Reserving: An Integrated Look. Moderator: W. Scott Lennox, FSA, FCAS, FCIA

Session 25 L, Introduction to General Insurance Ratemaking & Reserving: An Integrated Look Moderator: W. Scott Lennox, FSA, FCAS, FCIA Presenter: Houston Cheng, FCAS, FCIA Society of Actuaries 2013 Annual

### New York. Workers Compensation. Ratemaking. -A Current Perspective-

New York Workers Compensation Ratemaking -A Current Perspective- Prepared by the New York Compensation Insurance Rating Board January 2002 (Updated December 2006) NEW YORK WORKERS COMPENSATION RATEMAKING

### TITLE 114 LEGISLATIVE RULES INSURANCE COMMISSIONER SERIES 22 MEDICAL MALPRACTICE ANNUAL REPORTING REQUIREMENTS

TITLE 114 LEGISLATIVE RULES INSURANCE COMMISSIONER SERIES 22 MEDICAL MALPRACTICE ANNUAL REPORTING REQUIREMENTS 114-22-1. General. 1.1. Scope. -- This legislative rule establishes guidelines and procedures

### CHAPTER 79 WORKERS' COMPENSATION INSURANCE

239 WORKERS' COMPENSATION INSURANCE 79.211 CHAPTER 79 WORKERS' COMPENSATION INSURANCE 79.074 79.085 79.211 79.251 79.252 79.253 79.34 79.35 79.50 79.51 Discrimination. Safely programs. Certain premium

### AN 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

### ACTUARIAL CONSIDERATIONS IN THE DEVELOPMENT OF AGENT CONTINGENT COMPENSATION PROGRAMS

ACTUARIAL CONSIDERATIONS IN THE DEVELOPMENT OF AGENT CONTINGENT COMPENSATION PROGRAMS Contingent compensation plans are developed by insurers as a tool to provide incentives to agents to obtain certain

### Reserving Issues for Workers Compensation Managed Care by Susan E. Witcraft, FCAS

Reserving Issues for Workers Compensation Managed Care by Susan E. Witcraft, FCAS 273 Reserving Issues for Workers Compensation Managed Care by Susan E. Witcraft Abstract Managed care is becoming an integral

### Department of Consumer & Business Services Oregon Insurance Division 5 350 Winter St. NE Salem, Oregon 97301-3883 Phone (503) 947-7983

Department of Consumer & Business Services Oregon Insurance Division 5 350 Winter St. NE Salem, Oregon 97301-3883 Phone (503) 947-7983 WORKERS COMPENSATION FORMS RATES FOR ADVISORY LOSS COST MODIFICATION

### 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

### Worker'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

### Financial Data Validation. Objectives

Financial Data Validation Presented by: Robin Regester and Scott Wendt 1 Objectives To provide an understanding of the importance of Financial Call data validation, discuss other validation tools and methods

### 2016 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,

### Calculating Loggers Worker s Compensation Insurance Premium

Calculating Loggers Worker s Compensation Insurance Premium Prepared by Jingxin Wang West Virginia University Division of Forestry Morgantown, WV 26506 Most loggers consider worker s compensation insurance

Whether you are a broker, CFO, or risk manager, you have probably heard the terms loss development triangle, loss development factor, and IBNR (incurred but not reported losses). These are often included

### Strategies for Reducing Workers Compensation Expenses

Strategies for Reducing Workers Compensation Expenses Workers Compensation is the Prime Employee Benefit 100% Paid by Employer Every Employer Must Provide 100% Paid by Employer Employee Benefits Require

### Nebraska Filing Requirements for Workers Compensation Large Deductibles

Page 1 of 7 Nebraska Filing Requirements for Workers Compensation Large Deductibles Except as specifically noted, these approval standards and other requirements apply only to so-called large deductibles,

### The Performance of Total Payroll as the Exposure Base for Workers Compensation

NCCI RESEARCH BRIEF September 2006 by Natasha Moore and Delano Brown The Performance of Total Payroll as the Exposure Base for Workers Compensation The following examines the principle that total payroll

### Montana State Fund. Review of Rates Effective July 1, 2015 & Review of Claim Liability as of June 30, 2015

Montana State Fund Review of Rates Effective July 1, 2015 & Review of Claim Liability as of June 30, 2015 Firm: 1336 SW 146th Ct. Miami, FL 33184 Tel. (305) 273-1589 Contact: Aguedo (Bob) M. Ingco, FCAS,

### Educational Note. Premium Liabilities. Committee on Property and Casualty Insurance Financial Reporting. November 2014.

Educational Note Premium Liabilities Committee on Property and Casualty Insurance Financial Reporting November 2014 Document 214114 Ce document est disponible en français 2014 Canadian Institute of Actuaries

### GLOSSARY 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,

### WORKERS COMPENSATION EXPERIENCE MODIFICATION FACTOR. For All That Matters

WORKERS COMPENSATION EXPERIENCE MODIFICATION FACTOR For All That Matters WHAT S A WORKERS COMPENSATION EXPERIENCE MODIFICATION FACTOR? Your Work Comp Experience Modification Factor (E-Mod) is a primary

### Breaking Down Work Comp Premium

3. 4. Missouri Employers Mutual Understand How it Can Add Up to Savings For more information: www.mem-ins.com 1.800.442.0593 These recommendations were developed from national standards and sources believed

### Large Account Pricing

Workshop 5: Large Account Pricing Large Account Pricing Presenter: Joshua Taub, FCAS CAS Ratemaking and Product Management Seminar March 30, 2014 Washington, D.C. 1 / 34 CAS Antitrust Notice The Casualty

### 2015 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,

### THE 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

### COMMERCIAL 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

### Presented by Elizabeth Buhro, ACAS Texas Department of Insurance

Presented by Elizabeth Buhro, ACAS 1 The Rating System Prior to 1992 All rates and rating plans promulgated by the Board of Insurance, with very little opportunity for deviations Rates high and increasing,

### IASB Educational Session Non-Life Claims Liability

IASB Board Meeting Observer Note- Agenda Paper 10 January 2005 IASB Educational Session Non-Life Claims Liability Presented by the International Actuarial Association January 19, 2005 Sam Gutterman and

### Quick Guide to Workers Compensation

Quick Guide to Workers Compensation What Is Workers Compensation Insurance? Workers compensation insurance covers businesses for their statutory and legal obligations for employee expenses that are a direct

### Chapter 47 - GROUP SELF-INSURANCE RULE IMIPLEMENTING THE INTERGOVERNMENTAL RISK MANAGEMENT ACT

Title 210 - NEBRASKA DEPARTMENT OF INSURANCE Chapter 47 - GROUP SELF-INSURANCE RULE IMIPLEMENTING THE INTERGOVERNMENTAL RISK MANAGEMENT ACT 001. Authority. This rule is promulgated pursuant to the authority

### WCIRB REPORT ON THE STATE OF THE CALIFORNIA WORKERS COMPENSATION INSURANCE SYSTEM

STATE OF THE SYSTEM WCIRB REPORT ON THE STATE OF THE CALIFORNIA WORKERS COMPENSATION INSURANCE SYSTEM Introduction The workers compensation insurance system in California is over 100 years old. It provides

### Workers Compensation and the Aging Workforce

December 2011 by Tanya Restrepo and Harry Shuford Workers Compensation and the Aging Workforce There is widespread concern about the potential adverse impact on workers compensation loss costs as the baby

### Ratemaking 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

### VIRGINIA WORKERS COMPENSATION COMMISSION REPORT ON AUDIT FOR THE YEARS ENDED JUNE 30, 2006 AND JUNE 30, 2007

VIRGINIA WORKERS COMPENSATION COMMISSION REPORT ON AUDIT FOR THE YEARS ENDED JUNE 30, 2006 AND JUNE 30, 2007 AUDIT SUMMARY Our audit of the Virginia Workers Compensation Commission found: proper recording

### Connecticut Voluntary Loss Cost and Assigned Risk Rate Filing Proposed Effective January 1, 2015

Connecticut Voluntary Loss Cost and Assigned Risk Rate Filing Proposed Effective January 1, 2015 The 2014 Connecticut Workers Compensation Voluntary Loss Costs and Assigned Risk Rates ( Filing ) is the

### To avert future workers compensation

Actuaries,Rating Bureaus,and Workers Compensation Data BY RICHARD A. HOFMANN C R To avert future workers compensation political crises, regulators and legislators need to build better databases from which

### Analysis of Changes in Indemnity Claim Frequency

WCIRB California Research and Analysis January 7, 2016 Analysis of Changes in Indemnity Claim Frequency January 2016 Update Report Executive Summary Historically, indemnity claim frequency has generally

### Massachusetts General Law Chapter 152, 25O and 53A. Classification of risks and premiums: distribution of premiums among employers.

1 A. General Massachusetts General Law Chapter 152, 25O and 53A. Classification of risks and premiums: distribution of premiums among employers. 1. Who May Insure Workers Compensation Risks Any insurance

### Comparison of Multiple (Cross) Data Types

NCCI S Comparison of Multiple (Cross) Data Types January 26 29, 2016 Palm Beach County Convention Center West Palm Beach, FL Comparison of Multiple (Cross) Data Types Presented by: Julie Gonzalez and

### WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY

RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT WRAP-UP CONSTRUCTION PROJECT MULTIPLE LINES This endorsement is issued because you chose to have the cost of the insurance rated retrospectively. This endorsement

### COMMERCIAL EXCESS LIABILITY POLICY DECLARATIONS

COMMERCIAL EXCESS LIABILITY POLICY DECLARATIONS Policy No. Renewal 1. NAMED INSURED AND MAILING ADDRESS 2. POLICY PERIOD From To 12:01 A.M. standard time at your mailing address shown above. : 3. LIMITS

### Unit Statistical Data Loss and Claim Conditions

NCCI S Unit Statistical Data Loss and Claim Conditions January 26 29, 2016 Palm Beach County Convention Center West Palm Beach, FL Unit Statistical Data Loss and Claim Conditions Presented by: Richard

### July 12, 2012. Circular Letter No. 12-1616

Minnesota Workers Compensation Insurers Association, Inc. 7701 France Avenue South Suite 450 Minneapolis, MN 55435-3200 July 12, 2012 ALL ASSOCIATION MEMBERS Circular Letter No. 12-1616 RE: NCCI Item B-1425

### Audit summary. 1.1 Introduction

1 Audit summary 1.1 Introduction 1.1.1 Background The WorkCover scheme encompasses injury prevention and offers rehabilitation and compensation for workers suffering work-related injuries and illnesses.

ABCDEFGHIJ THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. GEORGIA RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT WRAP-UP CONSTRUCTION PROJECT - MULTIPLE LINES Policy Number: Effective Date:

### DETERMINING 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

### WCIRB Report on June 30, 2014 Insurer Experience Released: September 11, 2014

Workers Compensation Insurance Rating Bureau of California WCIRB Report on June 3, 214 Insurer Experience Released: September 11, 214 WCIRB California 525 Market Street, Suite 8 San Francisco, CA 9415-2767

### 2014 Statutory Combined Annual Statement Schedule P Disclosure

2014 Statutory Combined Annual Statement Schedule P Disclosure This disclosure provides supplemental facts and methodologies intended to enhance understanding of Schedule P reserve data. It provides additional

### APPLICATION 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

### I. Purpose OREGON WORKERS COMPENSATION TEST AUDIT PROGRAM

I. Purpose 836-048-0125 A Test Audit Program shall be conducted by the Bureau to carry out ORS 737.318. To perform this function, the Bureau shall maintain the test audit staff for examining pertinent

### Ohio Medical Malpractice Commission. Statement of James Hurley, ACAS, MAAA Chairperson, Medical Malpractice Subcommittee American Academy of Actuaries

Ohio Medical Malpractice Commission Statement of James Hurley, ACAS, MAAA Chairperson, Medical Malpractice Subcommittee American Academy of Actuaries June 11, 2003 The American Academy of Actuaries is

### ABC Auto Insurance Company Actuarial Review of Loss and LAE Reserves As of 12/31/11

ABC Auto Insurance Company Actuarial Review of Loss and LAE Reserves As of 12/31/11 Prepared by: Joe Actuary, ACAS, MAAA What s the Point Actuarial Consultants, Inc. Background and Scope ABC Auto Ins Co

### TOOL TYPE CEO BRIEF LAST REVIEWED 30, AUG 2010 GEOGRAPHY ALL SOURCE DON'T LET COMPANY GET STUCK HAVING TO PAY A CONTRACTORS WORKERS COMP PREMIUMS

TOOL TYPE CEO BRIEF LAST REVIEWED 30, AUG 2010 GEOGRAPHY ALL SOURCE DON'T LET COMPANY GET STUCK HAVING TO PAY A CONTRACTORS WORKERS COMP PREMIUMS HOW TO USE THE TOOL Here s a briefing that you can download

### Reforming the NSW Workers Compensation System. Rob Thomson General Manager, Workers Compensation WorkCover NSW

Reforming the NSW Workers Compensation System Rob Thomson General Manager, Workers Compensation WorkCover NSW Outline NSW System overview NSW Scheme performance Reforming the NSW System Recent initiatives

### Workers Compensation Basics

Workers Compensation Basics Coverage Comparisons Bare Employer responsible No planned benefits for injured worker or their family members Employer subject to loss as large as jury awards Occupational/Accident

### Quick Guide to Workers Compensation for Small Business

Quick Guide to Workers Compensation for Small Business Do I Need Workers Compensation Coverage? Generally speaking, businesses must obtain workers compensation coverage if they have employees that are

### HOUSE BILL NO. HB0303. Sponsored by: Representative(s) Simpson, Childers and Ross A BILL. for. AN ACT relating to the medical malpractice insurance

00 STATE OF WYOMING 0LSO-0 HOUSE BILL NO. HB00 Medical malpractice liability fund. Sponsored by: Representative(s) Simpson, Childers and Ross A BILL for AN ACT relating to the medical malpractice insurance

### What Is Workers Compensation?

What Is Workers Compensation? An Accident Insurance Program State Mandated Compulsory Company Funded What Does Worker s Comp Cover? Medical and Rehabilitation Expenses Lost Wages Death Benefits Where Can

### Workers' Compensation

Workers' Compensation Workers compensation provides benefits to injured employees for accidents or occupational diseases arising out of, and in the course of, their employment. Compensation coverage is

### Usage-based Auto Insurance (UBI)

Usage-based Auto Insurance (UBI) A revolution is underway. Is your company ready? A presentation to 2013 CIA Annual Meeting by Pierre G. Laurin June 21, 2013 2013 Towers Watson. All rights reserved. What

### The calculation of prudent reserve targets shall include consideration of the following factors:

Governing Body Policies Article GB04-A RESERVE FUNDS POLICY. Sections: GB04-A-1 OBJECTIVES. GB04-A-2 SCOPE. GB04-A-3 DEFINITIONS. GB04-A-4 PROVISIONS. GB04-A-5 PROCEDURES. GB04-A-6 RESPONSIBILITY FOR ENFORCEMENT.

### WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN CONNECTICUT

Consulting Actuaries WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN CONNECTICUT Scott J. Lefkowitz, FCAS, MAAA, FCA October 2015 CONTENTS Introduction... 1 Claim Frequency... 3 Introduction... 3 Frequency

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

### The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance

The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance By Thomas Sheppard Actuarial Consultant NCCI In 2000, a study by The Hartford, using its own data, found that

### ANNUAL REPORT Per SCR 111 of 2007

ANNUAL REPORT Per SCR 111 of 2007 BY LOUISIANA PATIENT S COMPENSATION FUND October 1, 2008 A BRIEF HISTORY OF THE LOUISIANA PATIENT S COMPENSATION FUND In the early 1970 s, a problem of crisis proportions

### What Happens After I Report the Injury?

Introduction The Iowa Workers Compensation Act provides the only legal remedy against their employer for workers who are injured on the job. Workers Compensation law can be very technical. The law is administered

### California Workers Compensation Insurance Pure Premium Rates and Claims Cost Benchmark Effective January 1, 2014

October 24, 2013 Ms. Christina Carrol, CPCU Attorney California Department of Insurance Legal Division, Government Law Bureau 300 Capitol Mall, 17th Floor Sacramento, CA 95814 RE: California Workers Compensation

### ARTICLE 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

### Understanding Workers Compensation in New York

Understanding Workers Compensation in New York May 2015 Scott J Lefkowitz FCAS, MAAA, FCA About Me Oliver Wyman Actuarial Consulting Office in Melville, NY FCAS, MAAA, FCA with 27 Years in Actuarial Field

### Workers Compensation Experience Modification Rate: The Split Point Threat August 15, 2014

Workers Compensation Experience Modification Rate: The Split Point Threat August 15, 2014 John Sweeney Vice President Marsh & McLennan Agency LLC Split Point Threat The purpose of the presentation is to

### Montana Workers Compensation

Montana Workers Compensation Part 1 - Ratemaking Overview Copyright 2013 National Council on Compensation Insurance, Inc. All Rights Reserved. Mike_Taylor@ncci.com 503-892-1858 WC Ratemaking Basics Where

### EXPERIENCE. COMMITMENT. STABILITY.

EXPERIENCE. COMMITMENT. STABILITY. 5 Why experience rating? Insurance is the spreading or sharing of risk by a group of policyholders who are likely to experience losses. The losses of an entire group

### State of the Workers Compensation Market

State of the Workers Compensation Market and Recent Experience Rating Changes Presented by: Tony DiDonato, FCAS, MAAA Director & Senior Actuary, NCCI CASE Spring Meeting March 27, 2013 Nashville, TN Workers

### Filing Smart Financial and Data Services Filings Guide

The Filing Smart web page is divided into nine sections http://www.tdi.texas.gov/financial/indexsmart.html Filing Smart General Information NAIC Checklists Company Licensing and Registration Holding Company

### Owner Operator Insurance Issues

Owner Operator Insurance Issues Utilizing Occupational Accident and Contingent Liability to Reduce the Inherent Risks Associated with using Owner Operators. Owner Operator Insurance Issues* Motor carriers

### EMR as Qualifier to Bid on Construction Projects

EMR as Qualifier to Bid on Construction Projects July 14, 2011 Introduction This white paper discusses the use of the experience rating modification (commonly referred to as EMR in the construction trades)

### THE BEACON MUTUAL INSURANCE COMPANY CHARTER

THE BEACON MUTUAL INSURANCE COMPANY CHARTER Rhode Island Public Laws 2003, Chapter 410, enacted August 6, 2003; as amended by Rhode Island Public Laws 2005, Chapter 117, Article16, Section10, enacted July

### Research Paper. Funding of Public Personal Injury Compensation Plans

Research Paper Funding of Public Personal Injury Compensation Plans Committee on Workers Compensation April 2011 Document 211038 Ce document est disponible en français 2011 Canadian Institute of Actuaries

### WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY RETROSPECTIVE PREMIUM ENDORSEMENT THREE YEAR PLAN MULTIPLE LINES

WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY RETROSPECTIVE PREMIUM ENDORSEMENT THREE YEAR PLAN MULTIPLE LINES This endorsement is issued because you chose to have the cost of the insurance

### pwc.com.au NT WorkSafe Actuarial review of Northern Territory workers compensation scheme as at June 2014

pwc.com.au NT WorkSafe Actuarial review of Northern Territory workers compensation scheme as at June 2014 30 June 2013 Key findings Funding ratio The following table shows the funding ratio for the scheme

### An Actuarial. Advantage. Maximizing the Benefit of an Actuarial Analysis. Prepared by: SIGMA Actuarial Consulting Group, Inc.

An Actuarial Advantage Maximizing the Benefit of an Actuarial Analysis Prepared by: SIGMA Actuarial Consulting Group, Inc. An Actuarial Advantage Maximizing the Benefit of an Actuarial Analysis Copyright

### TEXAS NON-SUBSCRIBER OCCUPATIONAL ACCIDENT INSURANCE POLICY APPLICATION

TEXAS NON-SUBSCRIBER OCCUPATIONAL ACCIDENT INSURANCE POLICY APPLICATION Application is hereby made for coverage (s), as specified per the signed attached quotation, to become effective on, at 12:01 AM

### Private Passenger Automobile. Analysis of No-Fault Legislative Reforms. Michigan. On Behalf of the Insurance Institute of Michigan

Private Passenger Automobile Analysis of No-Fault Legislative Reforms Michigan On Behalf of the Insurance Institute of Michigan by Michael J. Miller, FCAS, MAAA EPIC Consulting, LLC June 2007 Private Passenger

### RE: 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

### Workers Compensation Guide

Workers Compensation Guide Table of Contents Introduction: The Workers Compensation System 1 A Great Social Compromise 1 Chapter 1: Policy Organization, General Section 5 Policy Organization 5 General

### Workers Compensation: Practical Tips for Dealing With NCCI s Split Point Rating Change

Workers Compensation: Practical Tips for Dealing With NCCI s Split Point Rating Change November 2012 Lockton Companies A key factor in your workers compensation premium is your experience mod. The e-mod

### Minnesota 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

### The State of Competition in the Workers' Compensation Market 2015

Maine State Library Maine State Documents Insurance Documents Professional and Financial Regulation 12-30-2015 The State of Competition in the Workers' Compensation Market 2015 Maine Bureau of Insurance

### LARGE DEDUCTIBLE WORKERS COMPENSATION APPLICATION

Applicant s Representative: Address: Effective date: Quote needed by: New application Renewal of policy number 1) Legal name of applicant (and subsidiaries if applicable): 2) Mailing address: 3) FEDERAL

### White Paper. Managing Your Workers Compensation Experience Modification. People helping people...it s what we do best.

White Paper Managing Your Workers Compensation Experience Modification People helping people...it s what we do best. For many businesses workers compensation is the largest single property or liability

### Medicare versus Private Health Insurance: The Cost of Administration. Presented by: Mark E. Litow, FSA Consulting Actuary.

Medicare versus Private Health Insurance: The Cost of Administration Presented by: Mark E. Litow, FSA Consulting Actuary January 6, 2006 Medicare versus Private Health Insurance: The Cost of Administration