ncci experience rating plan

《ncci experience rating plan》由会员上传分享，免费在线阅读，更多相关内容在工程资料-天天文库。

1、2014-CAS8§2NCCIExperienceRatingPlanHCM5/13/14,Page32Section2,NCCIExperienceRatingPlan15TheNCCIExperienceRatingPlanManualwillbeattachedtoyourexam.Haveitwithyouwhenyoudopastexamquestions.Besuretolookthroughitallseveraldifferenttimesduringyourstudying.NotetheusefulTableofConten

2、tsinthefrontofthemanual.NotetheWandBtablesattheend.16NotetheTableofELRsandD-Ratiosbyclass,neartheend.Rule2Dshowstheexperienceratingformula.Rule2Ccontainsimportantdefinitions.15CASLearningObjectiveB3.16Inapracticalapplicationonewoulduseatablefortheappropriatestate(s)andthatap

3、pliedforthepolicyeffectivedate.However,theplanattachedtoyourexamhasonlyoneWandBTable,forasinglestateandeffectivedate.2014-CAS8§2NCCIExperienceRatingPlanHCM5/13/14,Page33NCCIExperienceRatingPlanforWorkersCompensation:Ap+WAe+(1-W)Ee+BM=.E+BM=ExperienceModificationFactorAp=Act

4、ual(observed)PrimaryLossesEp=ExpectedPrimaryLossesAe=Actual(observed)ExcessLossesEe=ExpectedExcessLossesB=BallastValueW=ExcessLossesWeightingFactorWandBdependonEp+Ee=E=ExpectedLosses,andthestate.Theprimarylosseswouldbetheportionofeachlosttimeclaimlessthan$5000.17Alldollarsab

5、ovealimitofforexample$175,000areexcludedfromExperienceRating.Thislimitvariesbystate.18Onecanrewritetheexperiencemodificationas:M=1+Zp(Ap-Ep)/E+Ze(Ae-Ee)/E.Zp=E/(E+B)andZe=wZp.17Asdiscussedsubsequently,since1998,formedicalonlylosses,theprimaryandexcessportionsareeachreducedby

6、70%,sothatonly30%ofamedicalonlylossentersintotheExperienceRating.Also,inmoststates,lossesfromterrorismattacksareexcludedfromexperiencerating.TheD-RatiosandELRsareappropriatelyadjustedsothattheactualandexpectedlossesarecomparable.18See“WorkersʼCompensationExperienceRating:Wha

7、tEveryActuaryShouldKnow,”byGillam.2014-CAS8§2NCCIExperienceRatingPlanHCM5/13/14,Page34ExamplesofFactorsfromtheNCCIExperienceRatingPlan:19EZp=andZe=WZp.E+BHereareselectedWeightingandBallastvalues.20ExpectedWBZpZeLosses$10,0000.08$11,50046.5%3.7%$25,0000.10$13,80064.4%6.4%$10

8、0,0000.18$20,70082.9%14.9%$250,0000.30$36,80087.2%26.2%$1,000,0000.54$110,4