National Council on Compensation Insurance, Inc. Excess Loss Factors

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1 National Council on Compensation Insurance, Inc. Excess Loss Factors This is the documentation of the calculation of Excess Loss Factors for a particular state. An Excess Loss Factor (ELF) is the ratio of the portion of losses greater than a particular occurrence limit to standard premium. In states where NCCI files loss costs rather than rates, an Excess Loss Pure Premium Factor (ELPPF) is filed. The ELPPF is the ratio of the portion of losses greater than a particular occurrence limit to NCCI loss cost premium. (The terms "loss costs" and "pure premium" are often used synonomously.) ELFs are used in the Retrospective Rating Plan when an insured selects a loss limitation. The election of a loss limitation places a limit on the amount of incurred loss arising out of any one accident that will be included in the retrospective premium formula. Excess Loss Premium is the charge for this option and is computed by multiplying the standard premium by the ELF and the Loss Conversion Factor. In addition to the Retrospective Rating Plan, ELFs are used in pricing deductibles and reinsurance. ELFs vary by hazard group and limit within a state. Classes are segmented into four hazard groups based on the severity potential in the class. Classes in Hazard Group I have the lowest potential for large claims and classes in Hazard Group IV have the highest potential. NCCI's Retrospective Rating Plan Manual for Workers Compensation and Employers Liability Insurance contains a listing of the hazard group of each class and Excess Loss Factors or Excess Loss Pure Premium Factors by state and hazard group. Further information on the procedure that NCCI uses to calculate ELFs can be found in the paper, "Retrospective Rating: Excess Loss Factors" by William R. Gillam published in the CAS Proceedings, May The Excess Loss Factors booklet is published after the state filing containing these ELFs is approved. The following exhibits are included in this file: Table I Table II Exhibit I Exhibit II Exhibit III Exhibit IV Exhibit V Exhibit VI Exhibit VII Exhibit VIII Exhibit IX Countrywide Average Cost/Case By Injury Type and Hazard Group Countrywide Type of Injury Loss Distribution Table State Premium By Hazard Group State Distribution of Losses By Injury Type within Hazard Group State Average Cost per Case Differential By Hazard Group Calculation of Severity Trends Used in Average Cost per Case Calculation State Average Cost per Case By Report Calculation of State Average Cost Per Case on a Statewide and Hazard Group Basis Determination of Injury Weights State Excess Loss Factors Calculation By Hazard Group State Excess Loss and Allocated Expense Factors By Hazard Group (where applicable) An Excess Loss and Allocated Expense Factor (ELAF) is the ratio of the portion of loss plus allocated loss adjustment expense greater than a particular occurrence limit to standard premium. In some states NCCI does not include allocated loss adjustment expenses in filed loss costs and does not calculate ELAFs. Countrywide" refers to the combination of all states where NCCI collects data.

2 Countrywide Data Table I Weighted Countrywide Average Cost/Case by Injury Type and Hazard Group Injury Hazard Group Weighted Type I II III IV Average Fatal $69,515 $88,694 $110,723 $131,911 $105,162 P.T. $197,844 $214,883 $293,551 $352,559 $264,007 Major $69,288 $73,525 $85,199 $98,235 $80,150 Minor $11,319 $11,437 $12,122 $12,873 $11,728 T.T. $3,213 $3,213 $3,759 $3,964 $3,435 Med. $233 $233 $258 $262 $243 Differential to Weighted Average Injury Hazard Group Type I II III IV Fatal P.T Major Minor T.T Med Countrywide Standard Earned Premium by Hazard Group Total Ratio to Hazard Standard Standard Smallest Group Premium Premium Premium I $324,495,944 $50,626,079, II $23,444,564, III $25,372,947, IV $1,484,071, Table II Countrywide Type of Injury Loss Distribution Table Hazard Group Fatal P.T. Major Minor T.T. Med. I II III IV

3 Adjustment of Countrywide to State Exhibit I Premium Distribution By Hazard Group* Total Hazard Standard Standard Group Premium Premium Ratio I 14,318,507 2,616,301, II 1,182,992, III 1,336,003, IV 82,987, *Based on Unit Statistical Data Excluding Stevedoring for first, second, and third report policy periods. Exhibit II Distribution of Losses by Injury Type Derived from Hazard Group Premium Distribution & Countrywide Loss Distribution Injury Hazard Group Type I II III IV Fatal P.T Major Minor T.T Medical For each hazard group, the following procedure is utilized to obtain the distribution of losses within each injury type: The percentage of countrywide losses by hazard group (see Table II) is multiplied by the corresponding statewide ratio of standard earned premium to total (Exhibit I). This is then divided by the sum of these calculations for all four hazard groups. This procedure is done for each injury type.

4 Adjustment of Countrywide to State Exhibit III Factors to Adjust Countrywide Differential to State Differential Hazard Group (A)Injury Type (B)Injury Type I II III IV Fatal Fatal P.T P.T Major Major Minor Minor T.T T.T Medical Medical Hazard Group (C) Injury Type I II III IV P.T./Major Minor/T.T (A) For each injury type, the countrywide hazard group weighted average cost per case differential (Table I) is multiplied times percent of premium (Exhibit I) in the hazard group for that state. These products are summed to form the factors in (A). (B) For each hazard group the factors from Table I are divided by the appropriate injury type factor in section (A) of this exhibit. (C) For P.T. and Major injury types, and for Minor and T.T. injury types, a combined (by hazard group) differential is derived by calculating a weighted average of the two differentials using the factors from Exhibit VII as weights.

5 Calculation of Excess Loss Factor Trend Exhibit IV Policy Period 1/1/94-12/31/94 1/1/93-12/31/93 1/1/92-12/31/92 First Report Second Report Third Report (1) Effective Date of Filing 03/01/98 (2a) Midpoint of Filing 02/21/99 (2b) Midpoint of Policy Period 11/30/94 11/30/93 11/30/92 (3) Benefit Level to Which Losses are Brought 07/01/97 (4a) Yrs. from (2b) to (3) (4b) Yrs. from (3) to (2a) (5) Indemnity Trend {1.000**(4a) x1.000**(4b)} (6) Medical Average Charge - 09/30/ (7) Medical Average Charge - 09/30/ (8) Change over 5 Yrs. (6)/(7) (9) Max{Change Per Year (8)**.2, 1.029} (10) Medical Trend {(9)**(4a) x1.000**(4b)}

6 Calculation of Average Cost Per Case Exhibit V Report: FIRST Policy Period: 1/1/94-12/31/94 (1) (2) (3) (4) (5) (6) (7) (8) Trend in Ind. Trend Med. Trended Type of Indemnity Amend. Ind. Cost on Level Medical Amend. Medical on Level Injury Losses Factor Per Case (1)x(2)x(3) Losses Factor Trend (5)x(6)x(7) A. Death 2,783, ,839, , ,047 B. P.T. 1,696, ,740,388 1,284, ,551,045 C. Major 30,217, ,489,408 27,651, ,379,526 D. Minor 22,873, ,125,470 28,846, ,821,801 E. T.T. 24,532, ,169,957 42,579, ,399,480 F. Med. Only 14,358, ,332,880 G.Overall 82,103,618 xx xx 83,364, ,079, xx 138,916,779 (9) (10) (11) (12) (13) (14) (15) (16) (17) Total Average Severity Developed Indemnity Medical Total Losses No. of Severity Dev. to Severity Case 1st-to-ult. 1st-to-ult. Developed (4)+(8) Claims (9)/(10) Ult. Rep (11)x(12) Dev. Devt. Devt. (4)x(15)+(8)x(16) A. Death 3,271, , , ,993,505 B. P.T. 3,291, ,188, , ,498 C. Major 63,868, ,307,028 D. Minor 57,947,271 2,987 19, ,266,463 8,318 E. T.T. 76,569,437 11,506 6, ,923,196 F. Medical 17,332,880 38, xx xx ,603,487

7 Calculation of Average Cost Per Case Exhibit V Report: SECOND Policy Period:1/1/93-12/31/93 (1) (2) (3) (4) (5) (6) (7) (8) Trend in Ind. Trend Med. Trended Type of Indemnity Amend. Ind. Cost on Level Medical Amend. Medical on Level Injury Losses Factor Per Case (1)x(2)x(3) Losses Factor Trend (5)x(6)x(7) A. Death 2,444, ,505, , ,590 B. P.T. 3,552, ,665,948 3,253, ,171,049 C. Major 52,572, ,150,401 42,049, ,902,854 D. Minor 22,420, ,734,040 30,542, ,152,194 E. T.T. 23,092, ,831,485 38,742, ,663,693 F. Med. Only 15,126, ,390,124 G.Overall 104,081,744 xx xx 105,887, ,295, xx 167,025,504 (9) (10) (11) (12) (13) (14) (15) (16) (17) Total Average Severity Developed Indemnity Medical Total Losses No. of Severity Dev. to Severity Case 1st-to-ult. 1st-to-ult. Developed (4)+(8) Claims (9)/(10) Ult. Rep (11)x(12) Dev. Devt. Devt. (4)x(15)+(8)x(16) A. Death 3,251, , , ,786,448 B. P.T. 7,836, ,060, , ,903 C. Major 107,053, ,206,937 D. Minor 61,886,234 2,907 21, ,528,943 9,001 E. T.T. 73,495,178 11,490 6, ,864,838 F. Medical 19,390,124 44, xx xx ,329,136

8 Calculation of Average Cost Per Case Exhibit V Report: THIRD Policy Period:1/1/92-12/31/92 (1) (2) (3) (4) (5) (6) (7) (8) Trend in Ind. Trend Med. Trended Type of Indemnity Amend. Ind. Cost on Level Medical Amend. Medical on Level Injury Losses Factor Per Case (1)x(2)x(3) Losses Factor Trend (5)x(6)x(7) A. Death 6,315, ,536, , ,681 B. P.T. 7,782, ,032,028 13,398, ,105,140 C. Major 68,606, ,086,809 57,672, ,626,751 D. Minor 27,088, ,359,339 37,082, ,340,263 E. T.T. 21,493, ,395,853 38,750, ,470,708 F. Med. Only 16,244, ,738,158 G.Overall 131,287,061 xx xx 133,411, ,443, xx 208,656,701 (9) (10) (11) (12) (13) (14) (15) (16) (17) Total Average Severity Developed Indemnity Medical Total Losses No. of Severity Dev. to Severity Case 1st-to-ult. 1st-to-ult. Developed (4)+(8) Claims (9)/(10) Ult. Rep (11)x(12) Dev. Loss Devt. Loss Devt. (4)x(15)+(8)x(16) A. Death 6,912, , , ,751,951 B. P.T. 25,137, ,765, , ,711 C. Major 142,713,560 1, ,524,248 D. Minor 74,699,602 3,317 22, ,009,457 8,886 E. T.T. 71,866,561 12,906 5, ,224,212 F. Medical 20,738,158 48, xx xx ,132,183

9 Calculation of Cost Per Case Exhibit VI Adjusted Average Cost Per Case by Injury Types For Each Hazard Group I. Average Cost *States overall developed average Injury Type* Per Case cost per case for each injury type, Fatal 131,915 based upon latest three available P.T. / Major 190,235 years of USP data. Minor/T.T. 8,740 Med 469 Maximum aggregate 263,496 Fatal avg cost per case 131,915 II. Hazard Group Injury Type** I II III IV ** Four sets of factors for each stated ALAE Factor type Exhibit III, sections B and C) Fatal 90, , , ,885 are multiplied by stated injury type Adj. for ALAE 104, , , ,699 average cost per case (Section I) P.T./Major 161, , , ,506 for each hazard group, producing Adj for ALAE 186, , , ,869 adjusted figures in Section II of Minor/T.T. 8,189 8,207 9,168 9,693 this exhibit. Med Exhibit VII Combined Injury Weights HAZARD GROUP I HAZARD GROUP II Total Inj. Wts. Total Inj. Wts. Type of Incurred Injury Adj. for Incurred Injury Adj. for Injury Losses Wts. ALAE Losses Wts. ALAE Death 17, ,435, P.T. 345, ,804, Major 2,200, ,515, P.T./Maj. 2,545, ,320, Minor 1,861, ,603, T.T. 1,596, ,038, Min./T.T. 3,457, ,642, Medical 372, ,432, Total 6,392,451 xx 542,830,836 xx HAZARD GROUP III HAZARD GROUP IV ALL HAZARD GROUPS Total Inj. Wts. Total Inj. Wts. Total Type of Incurred Injury Adj. for Incurred Injury Adj. for Incurred Injury Injury Losses Wts. ALAE Losses Wts. ALAE Losses Wts. Death 11,588, ,490, ,531, P.T. 70,389, ,476, ,015, Major 300,870, ,451, ,038, P.T./Maj. 371,260, ,927, ,053, Minor 84,996, ,342, ,804, T.T. 97,817, ,560, ,012, Min./T.T. 182,814, ,903, ,817, Medical 24,143, ,117, ,064, Total 589,806,272 xx 40,438,027 xx 1,179,467,586 xx For each hazard group the following procedure is utilized to obtain the distribution of losses: The percentage of losses by injury type (Exhibit II) is multiplied by the corresponding injury type total incurred losses to achieve combined injury weights.

10 Calculation of Excess Loss Factors Exhibit VIII HAZARD GROUP I (1) (2) (3) (4) (5) (6) DEATH P.T./MAJOR MINOR/T.T. AVG. ELF ADJ. AVG. FINAL FINAL FINAL EXCESS EXCESS EXCESS EXCESS FLAT EXCESS ELF ELF ELPPF LOSS RATIO INJ. EXCESS RATIO X RATIO INJ. EXCESSRATIO X RATIO INJ. EXCESSRATIO X RATIO FACTOR RATIO (Vol. Rate) (A/R Rate) (Adv. L/C) LIMIT TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. (1)+(2) (3)xPLR VR (3)xPLR AR (3)xPLR LC $10, n/a $15, n/a $20, n/a $25, n/a $30, n/a $35, n/a $40, n/a $50, n/a $75, n/a $100, n/a $125, n/a $150, n/a $175, n/a $200, n/a $225, n/a $250, n/a $275, n/a $300, n/a $325, n/a $350, n/a $375, n/a $400, n/a $425, n/a $450, n/a $475, n/a $500, n/a $600, n/a $700, n/a $800, n/a $900, n/a $1,000, n/a $2,000, n/a $3,000, n/a $4,000, n/a $5,000, n/a $6,000, n/a $7,000, n/a $8,000, n/a $9,000, n/a $10,000, n/a Assigned Loss Voluntary Risk Cost Death Average Cost Per Case $90,626 Target Cost Ratio n/a P.T./Major Average Cost Per Case $161,510 Loss Adjustment Expense n/a Minor/T.T. Average Cost Per Case $8,189 Assessment Factor n/a PLR n/a

11 Calculation of Excess Loss Factors Exhibit VIII HAZARD GROUP II (1) (2) (3) (4) (5) (6) DEATH P.T./MAJOR MINOR/T.T. AVG. ELF ADJ. AVG. FINAL FINAL FINAL EXCESS EXCESS EXCESS EXCESS FLAT EXCESS ELF ELF ELPPF LOSS RATIO INJ. EXCESS RATIO X RATIO INJ. EXCESSRATIO X RATIO INJ. EXCESSRATIO X RATIO FACTOR RATIO (Vol. Rate) (A/R Rate) (Adv. L/C) LIMIT TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. (1)+(2) (3)xPLR VR (3)xPLR AR (3)xPLR LC $10, n/a $15, n/a $20, n/a $25, n/a $30, n/a $35, n/a $40, n/a $50, n/a $75, n/a $100, n/a $125, n/a $150, n/a $175, n/a $200, n/a $225, n/a $250, n/a $275, n/a $300, n/a $325, n/a $350, n/a $375, n/a $400, n/a $425, n/a $450, n/a $475, n/a $500, n/a $600, n/a $700, n/a $800, n/a $900, n/a $1,000, n/a $2,000, n/a $3,000, n/a $4,000, n/a $5,000, n/a $6,000, n/a $7,000, n/a $8,000, n/a $9,000, n/a $10,000, n/a Assigned Loss Voluntary Risk Cost Death Average Cost Per Case $115,558 Target Cost Ratio n/a P.T./Major Average Cost Per Case $171,972 Loss Adjustment Expense n/a Minor/T.T. Average Cost Per Case $8,207 Assessment Factor n/a PLR n/a

12 Calculation of Excess Loss Factors Exhibit VIII HAZARD GROUP III (1) (2) (3) (4) (5) (6) DEATH P.T./MAJOR MINOR/T.T. AVG. ELF ADJ. AVG. FINAL FINAL FINAL EXCESS EXCESS EXCESS EXCESS FLAT EXCESS ELF ELF ELPPF LOSS RATIO INJ. EXCESS RATIO X RATIO INJ. EXCESSRATIO X RATIO INJ. EXCESSRATIO X RATIO FACTOR RATIO (Vol. Rate) (A/R Rate) (Adv. L/C) LIMIT TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. (1)+(2) (3)xPLR VR (3)xPLR AR (3)xPLR LC $10, n/a $15, n/a $20, n/a $25, n/a $30, n/a $35, n/a $40, n/a $50, n/a $75, n/a $100, n/a $125, n/a $150, n/a $175, n/a $200, n/a $225, n/a $250, n/a $275, n/a $300, n/a $325, n/a $350, n/a $375, n/a $400, n/a $425, n/a $450, n/a $475, n/a $500, n/a $600, n/a $700, n/a $800, n/a $900, n/a $1,000, n/a $2,000, n/a $3,000, n/a $4,000, n/a $5,000, n/a $6,000, n/a $7,000, n/a $8,000, n/a $9,000, n/a $10,000, n/a Assigned Loss Voluntary Risk Cost Death Average Cost Per Case $144,315 Target Cost Ratio n/a P.T./Major Average Cost Per Case $204,503 Loss Adjustment Expense n/a Minor/T.T. Average Cost Per Case $9,168 Assessment Factor n/a PLR n/a

13 Calculation of Excess Loss Factors Exhibit VIII HAZARD GROUP IV (1) (2) (3) (4) (5) (6) DEATH P.T./MAJOR MINOR/T.T. AVG. ELF ADJ. AVG. FINAL FINAL FINAL EXCESS EXCESS EXCESS EXCESS FLAT EXCESS ELF ELF ELPPF LOSS RATIO INJ. EXCESS RATIO X RATIO INJ. EXCESSRATIO X RATIO INJ. EXCESSRATIO X RATIO FACTOR RATIO (Vol. Rate) (A/R Rate) (Adv. L/C) LIMIT TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. (1)+(2) (3)xPLR VR (3)xPLR AR (3)xPLR LC $10, n/a $15, n/a $20, n/a $25, n/a $30, n/a $35, n/a $40, n/a $50, n/a $75, n/a $100, n/a $125, n/a $150, n/a $175, n/a $200, n/a $225, n/a $250, n/a $275, n/a $300, n/a $325, n/a $350, n/a $375, n/a $400, n/a $425, n/a $450, n/a $475, n/a $500, n/a $600, n/a $700, n/a $800, n/a $900, n/a $1,000, n/a $2,000, n/a $3,000, n/a $4,000, n/a $5,000, n/a $6,000, n/a $7,000, n/a $8,000, n/a $9,000, n/a $10,000, n/a Assigned Loss Voluntary Risk Cost Death Average Cost Per Case $171,885 Target Cost Ratio n/a P.T./Major Average Cost Per Case $239,506 Loss Adjustment Expense n/a Minor/T.T. Average Cost Per Case $9,693 Assessment Factor n/a PLR n/a

14 Calculation of Excess Loss and Allocated Expense Factors Exhibit IX HAZARD GROUP I (1) (2) (3) (4) (5) (6) DEATH P.T./MAJOR MINOR/T.T. AVG. ELF ADJ. AVG. FINAL FINAL FINAL EXCESS EXCESS EXCESS EXCESS FLAT EXCESS ELF ELF ELPPF LOSS RATIO INJ. EXCESS RATIO X RATIO INJ. EXCESSRATIO X RATIO INJ. EXCESSRATIO X RATIO FACTOR RATIO (Vol. Rate) (A/R Rate) (Adv. L/C) LIMIT TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. (1)+(2) (3)xPLR VR (3)xPLR AR (3)xPLR LC $10, n/a $15, n/a $20, n/a $25, n/a $30, n/a $35, n/a $40, n/a $50, n/a $75, n/a $100, n/a $125, n/a $150, n/a $175, n/a $200, n/a $225, n/a $250, n/a $275, n/a $300, n/a $325, n/a $350, n/a $375, n/a $400, n/a $425, n/a $450, n/a $475, n/a $500, n/a $600, n/a $700, n/a $800, n/a $900, n/a $1,000, n/a $2,000, n/a $3,000, n/a $4,000, n/a $5,000, n/a $6,000, n/a $7,000, n/a $8,000, n/a $9,000, n/a $10,000, n/a Assigned Loss Voluntary Risk Cost Death Average Cost Per Case $104,764 Target Cost Ratio n/a P.T./Major Average Cost Per Case $186,706 Loss Adj. Expense n/a Minor/T.T. Average Cost Per Case $8,189 Alloc. Loss Adj. Expense n/a Assessment Factor n/a PLR n/a

15 Calculation of Excess Loss and Allocated Expense Factors Exhibit IX HAZARD GROUP II (1) (2) (3) (4) (5) (6) DEATH P.T./MAJOR MINOR/T.T. AVG. ELF ADJ. AVG. FINAL FINAL FINAL EXCESS EXCESS EXCESS EXCESS FLAT EXCESS ELF ELF ELPPF LOSS RATIO INJ. EXCESS RATIO X RATIO INJ. EXCESSRATIO X RATIO INJ. EXCESSRATIO X RATIO FACTOR RATIO (Vol. Rate) (A/R Rate) (Adv. L/C) LIMIT TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. (1)+(2) (3)xPLR VR (3)xPLR AR (3)xPLR LC $10, n/a $15, n/a $20, n/a $25, n/a $30, n/a $35, n/a $40, n/a $50, n/a $75, n/a $100, n/a $125, n/a $150, n/a $175, n/a $200, n/a $225, n/a $250, n/a $275, n/a $300, n/a $325, n/a $350, n/a $375, n/a $400, n/a $425, n/a $450, n/a $475, n/a $500, n/a $600, n/a $700, n/a $800, n/a $900, n/a $1,000, n/a $2,000, n/a $3,000, n/a $4,000, n/a $5,000, n/a $6,000, n/a $7,000, n/a $8,000, n/a $9,000, n/a $10,000, n/a Assigned Loss Voluntary Risk Cost Death Average Cost Per Case $133,585 Target Cost Ratio n/a P.T./Major Average Cost Per Case $198,800 Loss Adj. Expense n/a Minor/T.T. Average Cost Per Case $8,207 Alloc. Loss Adj. Expense n/a Assessment Factor n/a PLR n/a

16 Calculation of Excess Loss and Allocated Expense Factors Exhibit IX HAZARD GROUP III (1) (2) (3) (4) (5) (6) DEATH P.T./MAJOR MINOR/T.T. AVG. ELF ADJ. AVG. FINAL FINAL FINAL EXCESS EXCESS EXCESS EXCESS FLAT EXCESS ELF ELF ELPPF LOSS RATIO INJ. EXCESS RATIO X RATIO INJ. EXCESSRATIO X RATIO INJ. EXCESSRATIO X RATIO FACTOR RATIO (Vol. Rate) (A/R Rate) (Adv. L/C) LIMIT TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. (1)+(2) (3)xPLR VR (3)xPLR AR (3)xPLR LC $10, n/a $15, n/a $20, n/a $25, n/a $30, n/a $35, n/a $40, n/a $50, n/a $75, n/a $100, n/a $125, n/a $150, n/a $175, n/a $200, n/a $225, n/a $250, n/a $275, n/a $300, n/a $325, n/a $350, n/a $375, n/a $400, n/a $425, n/a $450, n/a $475, n/a $500, n/a $600, n/a $700, n/a $800, n/a $900, n/a $1,000, n/a $2,000, n/a $3,000, n/a $4,000, n/a $5,000, n/a $6,000, n/a $7,000, n/a $8,000, n/a $9,000, n/a $10,000, n/a Assigned Loss Voluntary Risk Cost Death Average Cost Per Case $166,828 Target Cost Ratio n/a P.T./Major Average Cost Per Case $236,405 Loss Adj. Expense n/a Minor/T.T. Average Cost Per Case $9,168 Alloc. Loss Adj. Expense n/a Assessment Factor n/a PLR n/a

17 Calculation of Excess Loss and Allocated Expense Factors Exhibit IX HAZARD GROUP IV (1) (2) (3) (4) (5) (6) DEATH P.T./MAJOR MINOR/T.T. AVG. ELF ADJ. AVG. FINAL FINAL FINAL EXCESS EXCESS EXCESS EXCESS FLAT EXCESS ELF ELF ELPPF LOSS RATIO INJ. EXCESS RATIO X RATIO INJ. EXCESSRATIO X RATIO INJ. EXCESSRATIO X RATIO FACTOR RATIO (Vol. Rate) (A/R Rate) (Adv. L/C) LIMIT TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. TO AVE. WGT. RATIO INJ. WT. (1)+(2) (3)xPLR VR (3)xPLR AR (3)xPLR LC $10, n/a $15, n/a $20, n/a $25, n/a $30, n/a $35, n/a $40, n/a $50, n/a $75, n/a $100, n/a $125, n/a $150, n/a $175, n/a $200, n/a $225, n/a $250, n/a $275, n/a $300, n/a $325, n/a $350, n/a $375, n/a $400, n/a $425, n/a $450, n/a $475, n/a $500, n/a $600, n/a $700, n/a $800, n/a $900, n/a $1,000, n/a $2,000, n/a $3,000, n/a $4,000, n/a $5,000, n/a $6,000, n/a $7,000, n/a $8,000, n/a $9,000, n/a $10,000, n/a Assigned Loss Voluntary Risk Cost Death Average Cost Per Case $198,699 Target Cost Ratio n/a P.T./Major Average Cost Per Case $276,869 Loss Adj. Expense n/a Minor/T.T. Average Cost Per Case $9,693 Alloc. Loss Adj. Expense n/a Assessment Factor n/a PLR n/a

DELAWARE COMPENSATION RATING BUREAU, INC.

Exhibit 28 Amended DELAWARE COMPENSATION RATING BUREAU, INC. DECEMBER 1, 201 RESIDUAL MARKET RATE AND VOLUNTARY MARKET LOSS COST FILING INDEX TO CLASSIFICATION EXHIBITS 1 Composite Pure Premium Multipliers