DELAWARE COMPENSATION RATING BUREAU, INC.

Transcription

1 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 2 Per Claim and Catastrophe Limitations 3 Credibility - 100% Expected Loss Standard 4 Expected Loss Credibility Table 5 Payroll Conversion Factors 6 Payroll Credibility Table 7 Table V - Total 8 Proposed Loss Cost Selections 9 Aircraft Procedure 10 Supplemental Class Book Pages - Combined Classifications Note: As described in Exhibit 15, for low credibility classifications, an alternative approach may be employed to derive classification rating values. In those instances the final indicated rating value will generally be different than that shown in the Class Book.

2 December 1, 2018 Residual Market Rate and Voluntary Market Loss Cost Filing Calculation of Composite Pure Premium Multipliers Manufacturing Contracting and and Other Item Utilities Quarrying Industries (1) Pure Premium Test Correction Factor (2) Off-Balance Factor (Collectible Prem Ratio) (3) Expense Provision ( = 1 / ) (4) Effect of 7/1/19 Benefit Change (5) Rate Test Correction Factor (6) Composite Pure Premium Multiplier (1)*(2)*(3)*(4)*(5) 1

3 CALCULATION OF PER CLAIM AND CATASTROPHE LIMITATIONS All Death, Permanent Total and Major Disability claims in the Delaware experience for Manual Years 2011 through 2015 were translated using composite multipliers, yielding an average claim value of $ 1,098,905. Using twice this value as unity and using the indicated Hazard Group Relativities produced the following results: Hazard Hazard Group Per Claim Limit Per Accident Limit Group Relativities * (2) * $1,098,905 (3) * 2 (1) (2) (3) (4) A ,135 1,736,270 B ,058 1,890,116 C ,032,971 2,065,942 D ,120,883 2,241,766 E ,219,785 2,439,570 F ,329,675 2,659,350 G ,450,555 From Delaware 12/1/18 excess loss analysis materials 2

4 CREDIBILITY The classification relativity criteria for 100 percent credibility for the various categories of loss are as follows: Serious: 175 * Average Cost of Serious Case (including Medical) Non-Serious: 500 * Average Cost of Non-Serious Case (including Medical) Medical: 10 Percent of the Non-Serious The following calculations are based on the figures in Table V, Section B. AVERAGE No. INDEMNITY MEDICAL TOTAL COST Cases AMOUNT AMOUNT AMOUNT (4) / (1) (1) (2) (3) (4) (5) Death 29 17,968,300 5,873,200 23,841, ,121 Permanent Total 15 26,123,500 63,399,900 89,523,400 5,968,227 Major 1, ,751, ,565, ,316, ,469 Total Serious 1, ,843, ,838, ,681, ,099 Minor 3, ,385, ,040, ,426, ,444 Temporary 6,519 73,060, ,587, ,648,100 39,216 Total Non-Serious 10, ,446, ,628, ,074,200 63,271 Accordingly, the criteria for 100 percent credibility will be: Indicated Selected Criteria Average Average for 100% Cost Cost Credibility Serious 809,099 1,098, ,308,375 * Non-Serious 63,271 66,528 33,264,000 ** Medical N/A N/A 3,326,400 *** * Serious Credibility = 175 x Selected Serious average cost ** Non-Serious = 500 x Selected Non-Serious average cost *** Medical = 10% of Non-Serious credibility criteria 3

5 EXPECTED LOSS CREDIBILITY TABLE Serious, Non-Serious and Medical Credibility Serious Non-Serious Medical (1) (2) (3) (4) ,867,939 33,014,845 3,301, ,997,917 32,518,411 3,251, ,142,425 32,024,490 3,202, ,301,537 31,533,096 3,153, ,475,328 31,044,240 3,104, ,663,876 30,557,937 3,055, ,867,258 30,074,200 3,007, ,085,553 29,593,042 2,959, ,318,842 29,114,478 2,911, ,567,206 28,638,522 2,863, ,830,728 28,165,187 2,816, ,109,494 27,694,490 2,769, ,403,588 27,226,443 2,722, ,713,099 26,761,063 2,676, ,038,114 26,298,365 2,629, ,378,725 25,838,365 2,583, ,735,024 25,381,078 2,538, ,107,103 24,926,521 2,492, ,495,059 24,474,710 2,447, ,898,989 24,025,662 2,402, ,318,992 23,579,394 2,357, ,755,167 23,135,924 2,313, ,207,619 22,695,269 2,269, ,676,452 22,257,448 2,225, ,161,772 21,822,478 2,182, ,663,689 21,390,379 2,139, ,182,313 20,961,170 2,096, ,717,757 20,534,870 2,053, ,270,138 20,111,500 2,011, ,839,574 19,691,080 1,969, ,426,184 19,273,631 1,927, ,030,092 18,859,174 1,885, ,651,425 18,447,730 1,844, ,290,309 18,039,323 1,803, ,946,878 17,633,975 1,763, ,621,266 17,231,708 1,723, ,313,609 16,832,548 1,683, ,024,050 16,436,518 1,643, ,752,731 16,043,643 1,604, ,499,802 15,653,949 1,565, ,265,413 15,267,462 1,526, ,049,720 14,884,209 1,488, ,852,882 14,504,217 1,450, ,675,061 14,127,514 1,412, ,516,426 13,754,130 1,375, ,377,149 13,384,095 1,338, ,257,406 13,017,438 1,301, ,157,380 12,654,192 1,265, ,077,257 12,294,389 1,229, ,017,229 11,938,061 1,193, ,977,495 11,585,244 1,158, ,958,259 11,235,972 1,123, ,959,731 10,890,283 1,089, ,982,127 10,548,212 1,054, ,025,673 10,209,800 1,020, ,090,598 9,875, ,

6 EXPECTED LOSS CREDIBILITY TABLE Serious, Non-Serious and Medical Credibility Serious Non-Serious Medical (1) (2) (3) (4) ,177,142 9,544, , ,285,552 9,216, , ,416,084 8,893, , ,569,002 8,574, , ,744,582 8,258, , ,943,110 7,946, , ,164,880 7,639, , ,410,201 7,335, , ,679,393 7,036, , ,972,791 6,741, , ,290,743 6,450, , ,633,612 6,163, , ,001,781 5,881, , ,395,646 5,603, , ,815,626 5,330, , ,262,160 5,061, , ,735,710 4,797, , ,236,764 4,538, , ,765,836 4,283, , ,323,469 4,034, , ,910,242 3,789, , ,526,768 3,550, , ,173,702 3,316, , ,851,743 3,087, , ,561,641 2,864, , ,304,205 2,647, , ,080,305 2,435, , ,890,887 2,229, , ,736,983 2,030, , ,619,721 1,836, , ,540,345 1,650, , ,500,236 1,470, , ,500,936 1,297, , ,544,185 1,131, , ,631, ,175 97, ,766, ,486 82, ,950, ,362 68, ,187, ,358 55, ,481, ,154 42, ,836, ,611 31, ,259, ,865 21, , ,524 13, ,405 61,130 6, ,019 11,766 1,

7 Classification Credibility Table Payroll Conversion Factors Convert the Expected Loss Credibility Table to a Payroll Basis A) Five Year Payroll (00's) 745,868,250 B) Five Year Expected Losses * Serious Non-Serious Medical Only 578,248, ,623,847 49,185,297 C) =A/B Ratio Payroll to Expected Loss Serious Non-Serious Medical Only * Expected losses associated with payroll based classifications only 5

8 PAYROLL CREDIBILITY TABLE (IN 00'S) Serious, Non-Serious and Medical Credibility Serious Non-Serious Medical (1) (2) (3) (4) ,200,555 52,434,177 50,065, ,498,513 51,645,740 49,312, ,815,214 50,861,295 48,563, ,150,753 50,080,863 47,818, ,505,226 49,304,462 47,077, ,878,734 48,532,116 46,339, ,271,376 47,763,844 45,606, ,683,255 46,999,669 44,876, ,114,474 46,239,614 44,150, ,565,139 45,483,701 43,428, ,035,356 44,731,950 42,711, ,525,236 43,984,389 41,997, ,034,888 43,241,037 41,287, ,564,426 42,501,920 40,581, ,113,963 41,767,063 39,880, ,683,617 41,036,491 39,182, ,273,507 40,310,228 38,489, ,883,752 39,588,301 37,799, ,514,477 38,870,734 37,114, ,165,806 38,157,556 36,433, ,837,868 37,448,794 35,756, ,530,790 36,744,474 35,084, ,244,708 36,044,626 34,416, ,979,755 35,349,279 33,752, ,736,070 34,658,460 33,092, ,513,792 33,972,200 32,437, ,313,066 33,290,530 31,786, ,134,035 32,613,481 31,140, ,976,851 31,941,084 30,498, ,841,667 31,273,373 29,860, ,728,635 30,610,381 29,227, ,637,916 29,952,140 28,598, ,569,673 29,298,685 27,975, ,524,070 28,650,053 27,355, ,501,278 28,006,279 26,741, ,501,471 27,367,399 26,131, ,524,824 26,733,453 25,525, ,571,522 26,104,478 24,925, ,641,748 25,480,514 24,329, ,735,695 24,861,602 23,738, ,853,556 24,247,783 23,152, ,995,534 23,639,101 22,571, ,161,832 23,035,597 21,994, ,352,661 22,437,318 21,423, ,568,238 21,844,309 20,857, ,808,784 21,256,620 20,296, ,074,528 20,674,295 19,740, ,365,704 20,097,388 19,189, ,682,554 19,525,949 18,643, ,025,324 18,960,028 18,103, ,394,271 18,399,685 17,568, ,789,658 17,844,971 17,038, ,211,757 17,295,947 16,514, ,660,846 16,752,670 15,995, ,137,216 16,215,204 15,482, ,641,162 15,683,612 14,975,

9 PAYROLL CREDIBILITY TABLE (IN 00'S) Serious, Non-Serious and Medical Credibility Serious Non-Serious Medical (1) (2) (3) (4) ,172,995 15,157,957 14,473, ,733,034 14,638,311 13,976, ,321,607 14,124,741 13,486, ,939,056 13,617,321 13,002, ,585,736 13,116,126 12,523, ,262,018 12,621,236 12,051, ,968,279 12,132,730 11,584, ,704,918 11,650,695 11,124, ,472,349 11,175,217 10,670, ,271,003 10,706,388 10,222, ,101,329 10,244,306 9,781, ,963,796 9,789,068 9,346, ,858,897 9,340,781 8,918, ,787,144 8,899,552 8,497, ,749,076 8,465,498 8,083, ,745,260 8,038,738 7,675, ,776,292 7,619,401 7,275, ,842,802 7,207,618 6,881, ,945,452 6,803,533 6,496, ,084,943 6,407,294 6,117, ,262,021 6,019,060 5,747, ,477,478 5,638,999 5,384, ,732,158 5,267,292 5,029, ,026,963 4,904,131 4,682, ,362,861 4,549,723 4,344, ,740,894 4,204,286 4,014, ,162,185 3,868,064 3,693, ,627,955 3,541,313 3,381, ,139,534 3,224,319 3,078, ,698,378 2,917,392 2,785, ,306,091 2,620,871 2,502, ,964,454 2,335,138 2,229, ,675,457 2,060,616 1,967, ,441,344 1,797,782 1,716, ,264,678 1,547,185 1,477, ,148,412 1,309,449 1,250, ,096,013 1,085,316 1,036, ,111, , , ,200, , , ,368, , , ,624, , , , , , ,857 97,087 92, ,738 18,687 17,

10 7-1

11 7-2

12 7-3

13 7-4

14 7-5

15 7-6

16 7-7

17 7-8

18 Code Selection Basis for Rate Selection DELAWARE COMPENSATION RATING BUREAU, INC. DECEMBER 1, 2018 LOSS COST REVISION RATE SELECTIONS Before DCCPAP Surcharges Temporary Staffing Classifications Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Use rate for associated non-temporary class Aircraft Procedure Aircraft Procedure Aircraft Procedure Aircraft Procedure Aircraft Classifications Other Classifications Supplemental load, 20% of Supplemental load, 10% of No comparable Pa. code, use industry group change No comparable Pa. code, use industry group change No comparable Pa. code, use industry group change Asbestos encap., 150% of 647, Expected loss rates = 100% of 647 * Use combined experience of 670, 681 * Use combined experience of 670, Based on percentage change of combined experience for 544, 682, 929, 937 & Use combined experience of 809, Use combined experience of 811, Based on percentage change of combined experience for 544, 682, 929, 937 & Based on percentage change of combined experience for 544, 682, 929, 937 & 947 * Use combined experience of 970, 991 * Use combined experience of 970, Use combined experience of 809, Use combined experience of 811, Catastrophe load, 1/3 of "A" "A" Rated * These classifications, along with their respective companion classifications, are combined for ratemaking purposes. However, even on a combined basis the volume of experience remains small and is therefore subject to the "non-reviewed" classification ratemaking procedure. 8

19 Delaware Compensation Rating Bureau. Inc. Aircraft Operations Classifications * 5 Year 6/1/18 12/1/18 12/1/18 Payroll Manual Indicated Adjusted (000) INDEX 7413, 7421, 7424, Code Rate Index * Index * * Index 26, * Index 24, * Index * Total 51,959 Average weighted by payroll * See Page 8 for the loss cost selections for these classes. 9

20 CLASS: INDUSTRY GROUP: CODE: Temp Classes Manual Payroll Total Rept Total Trans Pure Prem Claim Claim Number of Cases Year in Thous. Losses Losses Reported Severity Frequency Death P.T. Major Minor Temp All ,563 1,454,965 2,985, , ,112 2,086,824 4,547, , ,279 1,646,520 3,718, , ,672 1,499,210 3,940, , , ,914 3,395, , TOTAL 295,388 7,683,433 18,588, , O.D REPORTED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , ,543 54, , , ,704 70, , ,620 98, , , ,430 72, , , , , , , , , , ,515 38, , , , , , , , ,553 TOTAL 0 0 1,033,761 1,592, , ,427,088 1,417, , ,822 O.D TRANSLATED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , , , , , ,452 73, , , , , ,742 2,062, , ,924 77, , , , , , ,320 1,080, , , ,546 25, , , ,675 14,928 9, , , , , ,430 20, , , ,333 9,616 13, , , , ,702 TOTAL 21,976 79,533 3,238,960 2,455, ,387 24, ,123 5,341,801 3,773,558 1,976, ,705 O.D SERIOUS NON-SER MED ONLY TOTAL TOTAL TRANSLATED LOSSES 8,859,937 9,090, ,705 IBNR + FREQ. ADJUSTMENT (7,195,737) (3,035,962) 4,012 TOTAL LOSSES 1,664,200 6,054, ,717 EXPECTED LOSSES 15,956,860 10,820, ,518 CREDIBILITY PURE PREMIUMS INDICATED (PRE-TEST) INDICATED (POST-TEST) PRES. ON RATE LEVEL DERIVED BY FORMULA UNDERLYING PRES. RATE PROPOSED Combined 6/1/18 rating value YEAR IND. RATE = IND. RATE Indicated percentage change MAN. RATE ADJ. RATE = %

21 CLASS: INDUSTRY GROUP: CODE: House Furnishings & Canvas Goods Erection Manual Payroll Total Rept Total Trans Pure Prem Claim Claim Number of Cases Year in Thous. Losses Losses Reported Severity Frequency Death P.T. Major Minor Temp All ,501 1,254,213 1,868, , ,797 71, , , , ,624 1,476, , , , , , , , , , TOTAL 31,806 2,325,381 4,805, , O.D REPORTED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , , , ,041 2, ,593 13,276 6, ,826 43,486 77, ,214 70,424 38,055 7, , , , ,756 49, ,537 79,157 0 TOTAL , , , , , ,488 21,383 O.D TRANSLATED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only ,055, , , ,353 70,061 3, ,547 5,367 31,692 7, , ,439 81, , , , ,432 92,088 7, ,772 2,201 69,518 92,582 4,906 4,763 1, , ,316 18,119 1, ,327 4, ,741 78,231 47,885 2,217 3, , , ,850 0 TOTAL 4,099 17,525 1,666, , ,694 6,980 30,741 1,719, , ,749 22,155 O.D SERIOUS NON-SER MED ONLY TOTAL TOTAL TRANSLATED LOSSES 3,445,975 1,336,875 22,155 IBNR + FREQ. ADJUSTMENT (501,035) (253,005) 164 TOTAL LOSSES 2,944,940 1,083,870 22,319 EXPECTED LOSSES 1,078, ,253 51,526 CREDIBILITY PURE PREMIUMS INDICATED (PRE-TEST) INDICATED (POST-TEST) PRES. ON RATE LEVEL DERIVED BY FORMULA UNDERLYING PRES. RATE PROPOSED YEAR IND. RATE = IND. RATE 8.41 MAN. RATE ADJ. RATE = 8.41

22 CLASS: INDUSTRY GROUP: CODE: Sanitary Company Fuel Distribution Manual Payroll Total Rept Total Trans Pure Prem Claim Claim Number of Cases Year in Thous. Losses Losses Reported Severity Frequency Death P.T. Major Minor Temp All , , , , , , , , ,689 1,372,239 3,093, , , ,561 2,031, , , , , , TOTAL 84,327 2,875,368 7,031, , O.D REPORTED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , ,993 26, ,865 31,807 33,896 72,593 38, , , , ,597 21, ,400 16,448 17, ,713 65,465 57,259 73, ,254 69,206 31,500 48,930 19,169 TOTAL , , , , , , ,177 O.D TRANSLATED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , ,284 27, ,798 13,929 51, ,212 87, ,771 40, , , , , , , ,005 1,034,053 21, , ,838 48,866 35,688 2,435 15, , , ,798 81, , ,101 69,025 66, , ,086 70,232 67,153 23,501 TOTAL 1,639 35,587 1,089, , ,691 3,294 21,852 1,313,472 1,025,309 2,006, ,983 O.D SERIOUS NON-SER MED ONLY TOTAL TOTAL TRANSLATED LOSSES 2,465,595 4,370, ,983 IBNR + FREQ. ADJUSTMENT (1,176,051) (480,855) 690 TOTAL LOSSES 1,289,544 3,889, ,673 EXPECTED LOSSES 2,593,055 1,719, ,714 CREDIBILITY PURE PREMIUMS INDICATED (PRE-TEST) INDICATED (POST-TEST) PRES. ON RATE LEVEL DERIVED BY FORMULA UNDERLYING PRES. RATE PROPOSED YEAR IND. RATE = IND. RATE 6.30 MAN. RATE ADJ. RATE = 6.30

23 CLASS: INDUSTRY GROUP: CODE: Combined Classes Manual Payroll Total Rept Total Trans Pure Prem Claim Claim Number of Cases Year in Thous. Losses Losses Reported Severity Frequency Death P.T. Major Minor Temp All ,841 2,445,701 5,565, , ,420 3,177,246 6,138, , ,233 2,461,166 5,145, , ,241 4,191,530 10,971, , ,970 3,411,625 11,020, , TOTAL 277,705 15,687,268 38,841, , O.D REPORTED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , , , , , , ,027 29, , , ,114 1,209, ,980 47,873 32, , , , ,946 1, , , ,712 29, ,780, , ,261 1,187, , ,791 74, ,657 83, , ,472 33,324 1,072,772 74,258 TOTAL 1,041, ,880,606 1,429,947 1,542,906 1, ,557,681 1,339,230 1,653, ,573 O.D TRANSLATED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only ,219, ,533, , , , , ,163 30, ,518 1,488, , , ,949 2,501,763 1,047, ,529 34, ,112,524 34,620 1,224, , ,778 8,382 33, , , ,625 29, , ,365 3,889, , ,267 12,560 72,661 4,183, , ,832 82, ,555 87,824 2,953, , ,135 19,302 59,128 3,065,872 1,499,030 1,438,588 91,040 TOTAL 2,363, ,327 11,089,533 3,076,871 1,890,441 40, ,903 11,566,368 4,923,561 2,998, ,736 O.D SERIOUS NON-SER MED ONLY TOTAL TOTAL TRANSLATED LOSSES 25,682,831 12,889, ,736 IBNR + FREQ. ADJUSTMENT (8,139,345) (2,218,129) 1,170 TOTAL LOSSES 17,543,486 10,671, ,906 EXPECTED LOSSES 17,925,858 7,936, ,144 CREDIBILITY PURE PREMIUMS INDICATED (PRE-TEST) INDICATED (POST-TEST) PRES. ON RATE LEVEL DERIVED BY FORMULA UNDERLYING PRES. RATE PROPOSED YEAR IND. RATE = IND. RATE MAN. RATE ADJ. RATE = 11.14

24 CLASS: INDUSTRY GROUP: CODE: Contact + Non-contact sports Manual Payroll Total Rept Total Trans Pure Prem Claim Claim Number of Cases Year in Thous. Losses Losses Reported Severity Frequency Death P.T. Major Minor Temp All ,757 89, , , , , TOTAL 3, , , , O.D REPORTED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , ,334 23, , , , TOTAL , , , ,479 23,463 O.D TRANSLATED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only ,376 2,097 13, ,451 5,608 36,977 23, , ,952 16,701 11, , ,780 47,060 19, TOTAL 168 7, ,328 18,798 25, , ,231 52,668 56,912 23,503 O.D SERIOUS NON-SER MED ONLY TOTAL TOTAL TRANSLATED LOSSES 719, ,784 23,503 IBNR + FREQ. ADJUSTMENT (59,181) (28,324) 170 TOTAL LOSSES 660, ,460 23,673 EXPECTED LOSSES 128,828 97,104 46,460 CREDIBILITY PURE PREMIUMS INDICATED (PRE-TEST) INDICATED (POST-TEST) PRES. ON RATE LEVEL DERIVED BY FORMULA UNDERLYING PRES. RATE PROPOSED YEAR IND. RATE = IND. RATE 8.83 MAN. RATE ADJ. RATE = 8.83

25 CLASS: INDUSTRY GROUP: CODE: Aircraft Manual Payroll Total Rept Total Trans Pure Prem Claim Claim Number of Cases Year in Thous. Losses Losses Reported Severity Frequency Death P.T. Major Minor Temp All ,274 3,106 3, ,054 15,310 16, , ,398 1,205,135 1,494, , , TOTAL 51,932 1,223,959 1,514, , O.D REPORTED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , , ,205, TOTAL 1,205, ,824 O.D TRANSLATED LOSSES Manual Indemnity Medical Year Death P.T. Major Minor Temp Death P.T. Major Minor Temp Med. Only , , ,494, TOTAL 1,494, ,972 O.D SERIOUS NON-SER MED ONLY TOTAL TOTAL TRANSLATED LOSSES 1,494, ,972 IBNR + FREQ. ADJUSTMENT (426,588) (45,475) 127 TOTAL LOSSES 1,068, ,099 EXPECTED LOSSES 920, ,509 32,198 CREDIBILITY PURE PREMIUMS INDICATED (PRE-TEST) INDICATED (POST-TEST) PRES. ON RATE LEVEL DERIVED BY FORMULA UNDERLYING PRES. RATE PROPOSED YEAR IND. RATE = IND. RATE 2.44 MAN. RATE ADJ. RATE = 2.44