Florida. September 19,

Transcription

1 Florida September 19,

2 Florida State Advisory Forum Welcome Annual Issues Symposium: Bill Donnell Video Excerpt Countrywide Workers Compensation System Florida s Workers Compensation System Countrywide and Florida Labor Markets Legislative Issues Emerging Issue: 2017 Medical Marijuana Update Q & A 2

3 AIS State of the Line Video Excerpt Bill Donnell NCCI President and CEO

4 Countrywide Workers Compensation System

5 Countrywide Workers Compensation (WC) System An Overview After five years of growth, premium is flat in the most recent year The combined ratio continues to show favorable results Lost-time claim frequency declined again Lost-time claim severity increased for both indemnity and medical 5

6 $ Billions WC Net Written Premium Private Carriers and State Funds State Funds ($B) Private Carriers ($B) p Calendar Year p Preliminary Source: NAIC s Annual Statement data; includes state insurance fund data for the following states: AZ, CA, CO, HI, ID, KY, LA, MD, MO, MT, NM, OK, OR, RI, TX, and UT Each calendar year total for state funds includes all funds operating as a state fund in that year 6

7 WC Direct Written Premium (DWP) Change by Component Private Carriers NCCI States Change in Direct Written Premium: 0.0% 2016 vs Payroll +4.0% Loss Cost and Mix -2.7% Carrier Discounting -1.4% State Fund Conversion to Private Carrier +1.0% Other Factors -0.8% Sources: DWP Change: NAIC s Annual Statement Statutory Page 14 for all states where NCCI provides ratemaking services Components: NCCI s Policy data 7

8 Increases in Payroll Continue to Drive Premium Growth Forecast Change Payroll Wage Rate +4.5% Employment +2.5% +1.9% 4% 4% 3% 3% 2% 2% 1% 1% 0% 0% -1% Prof. & Business Services Trade, Transport., & Utilities Education & Health Services Financial Activities Construction Manufacturing Construction Leisure & All Other Hospitality -1% Prof. & Business Services Trade, Transport., & Utilities Education & Health Services Financial Activities Manufacturing Leisure & All Other Hospitality Sources: Moody s Analytics and NCCI 8

9 Percent 5 WC Approved Changes in Bureau Premium Level By Effective Year for NCCI States p Calendar Year p Preliminary Source: NAIC s Annual Statement Statutory Page 14 Bureau premium level changes reflect approved changes in advisory rates, loss costs, assigned risk rates, and rating values, as of 5/12/2017, relative to those previously approved in NCCI states only IN and NC are filed in cooperation with state rating bureaus 9

10 Percent WC Impact of Discounting on Premium Private Carriers NCCI States p Policy Year p Preliminary Sources: NAIC s Annual Statement Statutory Page 14 and NCCI s Financial Call data NCCI benchmark level does not include a profit and contingency provision or expense constant Based on data for all states where NCCI provides ratemaking services, excluding TX 10

11 WC Impact of Discounting on Premium Private Carriers NCCI States Dividends Schedule Rating Rate/Loss Cost Departure p Policy Year p Preliminary Sources: NAIC s Annual Statement Statutory Page 14 and NCCI s Financial Call data Dividend ratios are based on calendar year statistics NCCI benchmark level does not include a profit and contingency provision or expense constant Based on data for all states where NCCI provides ratemaking services, excluding TX 11

12 Percent WC Combined Ratio Underwriting Gain Achieved Private Carriers 3% lower p Calendar Year p Preliminary Source: NAIC s Annual Statement data 12

13 WC Combined Ratio Components Private Carriers Percent Dividends 1 1 Underwriting Expense Ratio Loss Adjustment Expense (LAE) Ratio Loss Ratio p Calendar Year p Preliminary Source: NAIC s Annual Statement data 13

14 WC Net Combined Ratios Calendar Year vs. Accident Year As Reported Private Carriers Percent 120 Calendar Year Accident Year p p Preliminary Source: NAIC s Annual Statement data Accident Year information is reported as of 12/31/2016 Includes dividends to policyholders 14

15 Percent 5 WC Lost-Time Claim Frequency Change in Lost-Time Claims per $1M Pure Premium Private Carriers and State Funds NCCI States 0-5 Average Annual Change: 3.6% ( ) p Accident Year 2010 and 2011 adjusted primarily for significant changes in audit activity p Preliminary based on data valued as of 12/31/2016 Source: NCCI s Financial Call data, developed to ultimate, premium adjusted to current wage and voluntary pure premium level, excludes high-deductible policies; based on data through 12/31/2015 Values displayed reflect the methodology underlying the most recent rate/loss cost filing Includes all states where NCCI provides ratemaking services; WV is excluded through

16 WC Average Indemnity Claim Severity Private Carriers and State Funds NCCI States Severity ($ Thousands) % +3% $23.2 $ p Accident Year p Preliminary based on data valued as of 12/31/2016 Source: NCCI s Financial Call data, developed to ultimate, excludes high-deductible policies; based on data through 12/31/2015 Values displayed reflect the methodology underlying the most recent rate/loss cost filing Includes all states where NCCI provides ratemaking services; WV is excluded through

17 Relative Growth Rates Indemnity Severity vs. Wage Inflation Private Carriers and State Funds NCCI States +65% +33% Change in Indemnity Severity in Excess of Wage Inflation +34% +9% Change in Overall Indemnity Severity +32% Change in Wage Inflation +25% +7% +19% 1995 to to to 2016p -12% p Preliminary based on data valued as of 12/31/2016 Sources: Severity: NCCI s Financial Call data, developed to ultimate, excludes high-deductible policies; based on data through 12/31/2015 Values displayed reflect the methodology underlying the most recent rate/loss cost filing Includes all states where NCCI provides ratemaking services; WV is excluded through 2007 US Average Weekly Wage: and , Quarterly Census of Employment and Wages; , NCCI; 2016p, NCCI and Moody s Analytics 17

18 WC Average Medical Lost-Time Claim Severity Private Carriers and State Funds NCCI States Severity ($ Thousands) % +5% $27.7 $ p Accident Year p Preliminary based on data valued as of 12/31/2016 Source: NCCI s Financial Call data, developed to ultimate, excludes high-deductible policies; based on data through 12/31/2015 Values displayed reflect the methodology underlying the most recent rate/loss cost filing Includes all states where NCCI provides ratemaking services; WV is excluded through

19 Changes in Medical Lost-Time Claim Severity by Component Private Carriers and State Funds NCCI States +72% +56% Change in the Medical Utilization Component +47% +27% Change in Overall Medical Severity +16% Change in the Medical Price Component 1995 to to to 2016p +20% +14% +2% +12% p Preliminary based on data valued as of 12/31/2016 Sources: Severity: NCCI s Financial Call data, developed to ultimate, excludes high-deductible policies; based on data through 12/31/2015 Values displayed reflect the methodology underlying the most recent rate/loss cost filing Includes all states where NCCI provides ratemaking services; WV is excluded through 2007 Centers for Medicare & Medicaid Services: Personal Health Care Chain-Weighted Price Index 19

20 Florida s Workers Compensation System

21 Florida s Workers Compensation System An Overview Written premium volume increased for the fifth consecutive year Combined ratios have been stable in the recent past Lost-time claim frequency decreased again 21

22 Florida Workers Compensation Premium Volume Direct Written Premium in $ Billions p p Preliminary Source: NAIC s Annual Statement data Private Carriers Calendar Year Self-Insured 22

23 Florida Accident Year Combined Ratios 104% 97% 97% 96% 96% Sources: NCCI s financial data and NAIC s Annual Statement data 23

24 Florida Filing Activity Voluntary Rate Changes 14.5% -5.2% -4.7% -9.3% 1/1/2015 1/1/ /1/2016 1/1/2018* *Pending 24

25 25 Florida January 1, 2018 Rate Filing The most recent two full policy years of financial data is used as the filing s experience period Policy Year 2014 Policy Year 2015 Policy Year /1/14 1/1/15 1/1/16 12/31/16 1/1/18 1/1/19 12/31/19 Supreme Court Decisions effective April and June 2016 Financial data valued as of year-end

26 Current NCCI Voluntary Market Loss Cost/Rate Level Changes (%) Excludes Law-Only Filings NM NC OR NH MD CO TN AL CT IL NV WV OK LA FL IN UT IA AR AK VT MT TX KS AZ MS KY RI ME NE DC MO HI ID SD GA VA SC Approved Pending Reflects the most recent experience filing in each jurisdiction Due to the timing of the individual loss cost/rate filings, the figures shown may include changes from prior filing seasons 26

27 Florida January 1, 2018 Rate Filing Overall Rate Level Change: 9.3% Change in Experience: Change in Trend: Change in Benefits: Change in Other: 6.1% 1.7% 0.1% 1.6% 27

28 Florida January 1, 2018 Filing Average Changes by Industry Group Overall Change: 9.3% Manufacturing: 10.3% Contracting: 6.9% Office & Clerical: 11.3% Goods & Services: 10.4% Miscellaneous: 8.1% 28

29 Florida WC Lost-Time Claim Frequency Percentage Change in Lost-Time Claims 5.7% 1.8% -0.4% -4.0% -7.8% -6.8% -6.6% -9.1% -6.5% -3.5% -6.6% -5.2% -3.4% -5.2% Policy Year Based on data through 12/31/2016, developed to ultimate, premium adjusted to a common wage level 29

30 Florida Average Indemnity Claim Severity Lost-Time Claim Severity in $ Thousands -1.5% 1.7% -4.5% 0.6% -2.7% 12.9% 5.4% -5.2% 2.3% -1.6% -0.3% 2.8% 5.1% 5.4% $19.1 $18.1 $17.3 $16.8 $16.8 $17.1 $16.7 $17.6 $16.7 $14.8 $15.2 $15.2 $15.9 $15.6 $ Policy Year Based on data through 12/31/2016, on-leveled and developed to ultimate 30

31 Florida Average Medical Claim Severity Lost-Time Claim Severity in $ Thousands 11.3% 4.4% -1.4% 5.3% 2.1% 2.8% 4.6% 7.2% 3.8% 5.8% 7.3% -1.2% 4.8% -3.8% $41.6 $40.1 $37.4 $35.7 $34.8 $34.1 $32.3 $32.8 $31.4 $28.2 $29.3 $28.0 $28.3 $26.4 $ Policy Year Based on data through 12/31/2016, on-leveled and developed to ultimate 31

32 Current Average Voluntary Pure Loss Costs ($) Pure Loss Cost Using Florida s Payroll Distribution All Classes FL AL GA NC SC TN Region Country Based on the latest NCCI approved rates and loss costs in the various states 32

33 A Cautionary Tale: The Danger of Comparing Average Loss Costs Across States

34 Countrywide and Florida Labor Markets

35 National Economic Highlights and Their Impact on Workers Compensation National Economic Indicator Potential Impact on the Workers Compensation Market Private employment growth is expected to continue to slow The impact on payroll and premium will also slow Wage growth is poised to accelerate Medical inflation is forecast to slow and then reaccelerate Interest rates are still low but expected to increase Upward pressure on payroll and premium as well as indemnity severity Increases in medical costs per claim Investment income will likely remain muted this year but increase as interest rates rise 35

36 Change in Private Employment Private Employment Growth Is Above Average Percent 5 Florida United States Q Q Q1 Year-on-year percentage change; employment is for Total Private Industry Frequency of observation: quarterly; latest available data point: 2017 Q1 Sources: US Bureau of Labor Statistics, Moody s Analytics, and NCCI 36

37 Change in Average Weekly Wages Wage Growth Is Below the Rest of the Nation Percent 3 Florida United States Q Q Q1 Year-on-year percentage change; wages are for Total Private Industry Frequency of observation: quarterly; latest available data point: 2017 Q1 Sources: US Bureau of Labor Statistics, Bureau of Economic Analysis, Moody s Analytics, and NCCI 37

38 Private Industry Payroll Growth Decomposition Payroll Growth Is Outpacing the Nation Percent % +5.4% +3.9% Payroll % Florida +2.1% +1.7% United States AWW Employment 2017 Q1 year-on-year percentage change; AWW = Average Weekly Wage Sources: US Bureau of Labor Statistics, Bureau of Economic Analysis, Moody s Analytics, and NCCI 38

39 Headline Unemployment Rate The Unemployment Rate Is Slightly Below Average Percent US: 4.3% FL: 4.1% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Headline Unemployment Rate, seasonally adjusted Frequency of observation: monthly; latest available data point: July 2017 Source: US Bureau of Labor Statistics (BLS), 39

40 Florida s Labor Market Florida s unemployment rate is slightly below the US rate Overall payroll growth in Florida is above the nation Employment growth is above the US rate Professional and Business Services added the most jobs Education and Health Services and Trade, Transportation, and Utilities also added large numbers of jobs 40

41 Legislative Issues: Countrywide and Florida 41

42 2017 Overview Countrywide, legislative activity has increased over prior years both in volume and content. Regulation changes so far concern medical cost management, claim handling, and effectuating enacted legislation. Year to date, there has been about the same number of workers compensation-related cases at the state supreme court level as there were in The 2016 general election resulted in a net gain for Republicans in state government, where they now control both chambers of the legislature and the governor s office in 26 states. 42

43 2017 Workers Compensation Legislative Activity CA OR WA NV ID UT MT WY CO ND SD NE KS MN WI IA MO IL MI IN OH KY WV PA VA NY VT NH CT ME MA DC NJ DE MD RI AZ NM OK AR TN SC NC MS AL GA AK TX LA FL HI 0 10 Bills Introduced Bills Introduced Bills Introduced More Than 30 Bills Introduced As of 7/1/

44 Key Workers Compensation-Related Themes in Introduced Legislation First Responder Presumptions Indemnity Benefits Medical Cost Management Definitions 44

45 Federal Emerging Issues Regulation of Air Ambulance Services Sen. Jon Tester (MT) introduced legislation to provide state authority Federal Aviation Administration Reauthorization Social Security Disability Insurance(SSDI) Reform SSDI Solutions Initiative recommendations Trump Administration SSDI Reverse Offset Proposal Medicare Set-Aside Reform Legislation to be introduced to bring greater efficiency to MSA Process Congressional Budget Office scoring 45

46 Florida Legislative Session 46

47 Florida 2017 Legislative Session The Florida legislative session ended on May 5, 2017 with no workers compensation bill passed. Debate over Senate Bill 1582 and House Bill 7085 went on throughout the final day. An agreement on an hourly attorney fee cap could not be reached. The Senate version of the bill capped attorney fees at $250 an hour The House version of the bill contained a $150-an-hour cap Senators were also hesitant of the House proposal to cut reimbursements to hospitals that provide outpatient treatment to injured workers. The House Bill was estimated to save as much as 5% if adopted. The savings for the proposed Senate Bill were more modest, at 3% or less. During session, there were also discussions about transitioning from an administered rate system to a loss cost system. 47

48 Emerging Issue: The Legalization of Marijuana and Its Impact on Workers Compensation

49 Audience Question 1 How many states have legalized medical marijuana?

50 State Activity Medical Marijuana 29 Plus Washington, DC have legalized medical marijuana Recreational Marijuana 8 Plus Washington, DC have legalized recreational marijuana 50

51 51

52 Federal Activity US Drug Enforcement Administration Federal funds will not be used to prevent state implementation of medical marijuana laws Controlled Substances Act Unclear as to what will happen August 2016 May 2017 Currently 2017 and Beyond Will not reclassify marijuana House Resolution 244 Marijuana is an illegal Schedule I drug Current Administration 52

53 Audience Question 2 Scenario: In a state where both medical and recreational marijuana are legal, an employee has a valid prescription for medical marijuana and has used marijuana outside of work hours. The employer has a drug-free workplace policy. Can the employer terminate the employee for testing positive for marijuana? No, because marijuana is legal in the state No, the employee can be reprimanded, but not fired No, because the employee had a valid prescription Yes, the employer can lawfully terminate the employee 53

54 Colorado Supreme Court Coats v. Dish Network (2015) Employers can lawfully terminate workers for using marijuana outside of work hours even though the drug is LEGAL in the state. 54

55 Audience Question 3 Marijuana is illegal under federal law. Can a state require a WC insurer to reimburse for medical marijuana for a workplace injury? No, because marijuana is illegal under federal law No, because the Centers for Medicare & Medicaid Services (CMS) will not provide payment for products or services if a provider does not comply with federal law No, because the Schedule I status of marijuana prohibits the assigning of a National Drug Code (NDC) Yes, a state can require an insurer to reimburse certain claimants for medical marijuana if the drug is reasonable and necessary medical care for treatment of a work injury 55

56 An insurer MUST reimburse a qualified workers comp claimant for the cost of medical marijuana to treat low back pain Appealed to NM New Mexico Court of Appeals Vialpando v. Ben s Automotive Services and Redwood Fire & Casualty (2014) Supreme Court: Certiorari denied 56

57 New Mexico Court of Appeals Maez v. Riley Industrial (2015); Lewis v. American General Media (2015) An employer is required to reimburse a qualified claimant for medical marijuana if the drug is reasonable and necessary medical care for treatment of a work injury. 57

58 Connecticut Workers Compensation Commission Decision Petrini v. Marcus Dairy, Inc. and Gallagher Bassett Service (2016) Upheld the decision that the claimant s use of medical marijuana for pain management of his debilitating condition constitutes reasonable and necessary medical treatment. 58

59 Maine WC Board Decisions (2016) Maine WC Board: Noll v. Lepage Bakeries, Inc. and Cannon Cochran Management Services Bourgoin v. Twin Rivers Paper Co., LLC and Sedgwick CMS A self-insured employer is to reimburse costs for reasonable and proper use of medical marijuana under the state s WC and medical marijuana law. 59

60 Other Activity At least five states (Connecticut, Maine, Minnesota, New Jersey, and New Mexico) have allowed reimbursement for WC under certain circumstances Florida and North Dakota passed legislation in 2017 prohibiting payment of WC benefits for medical marijuana New Mexico Adopted a fee schedule to provide for reimbursement of medical marijuana to injured workers effective January 1, 2016 Introduced legislation (SB 371/HB 527) in 2017 requiring employers and carriers to pay for medical marijuana for injured workers; the legislation did not pass 60

61 Questions Raised by WC Stakeholders Is marijuana a safer alternative to opioids for pain management? Is it a less expensive alternative to other drugs? When a state legalizes marijuana, what is the potential impact on neighboring states? Should states consider fee schedules for marijuana (like New Mexico)? How are appropriate dosage levels determined? What is the impact on Medicare Set-Aside Allocations since marijuana is still illegal under federal law? 61

62 Legalization of Marijuana Summary States are increasingly legalizing marijuana in some form for medical use. Courts are increasingly dealing with contested cases of medical marijuana in the work environment. Marijuana is still illegal under federal law and remains a Schedule I drug. 62

63 63

64 Q & A

65 Supplemental Information

66 Medical Benefits Constitute the Majority of Total Benefit Costs in Florida 30.7% 69.3% 47.3% 52.7% 41.4% 58.6% Indemnity Medical Regional states are AL, GA, NC, SC, and TN Based on NCCI s financial data 66

67 Loss Ratio Florida Indemnity and Medical Loss Ratios Policy Year Indemnity Medical Based on NCCI s financial data at current benefit level and developed to ultimate 67

68 What Drives Indemnity and Medical Loss Ratios? Frequency (Claims/ Premium) Indemnity Severity (Loss/Claim) Indemnity Loss Ratio (Loss/Premium) Frequency (Claims/ Premium) Medical Severity (Loss/Claim) Medical Loss Ratio (Loss/Premium) 68

69 Frequency per Million of On-Leveled Premium Florida Claim Frequency Policy Year Based on NCCI s financial data Frequency of lost-time claims adjusted to a common wage level 69

70 Indemnity Average Claim Severity ($ '000s) Florida Average Indemnity Claim Severity Policy Year Adjusted to Common Wage Level Actual Based on NCCI s financial data for lost-time claims at current benefit level and developed to ultimate 70

71 Medical Average Claim Severity ($ '000s) Florida Average Medical Claim Severity Policy Year Adjusted to Common Wage Level Actual Based on NCCI s financial data for lost-time claims at current benefit level and developed to ultimate 71

72 Florida Average Claim Frequency Frequency per 100,000 Workers All Claims TN 821 2,801 Total 3,622 SC 820 2,031 Total 2,851 NC 660 2,021 Total 2,681 GA 698 2,151 Total 2,849 AL 661 2,523 Total 3,184 FL 854 2,490 Total 3, ,000 1,500 2,000 2,500 3,000 3,500 4,000 Lost-Time Medical Only Based on NCCI s Statistical Plan data 72

73 Average Indemnity Claim Severity in the Region Lost-Time Claim Severity in $ Thousands FL AL GA NC SC TN All states except Florida are based on limited data Based on NCCI s financial data for lost-time claims 73

74 Average Medical Claim Severity in the Region Lost-Time Claim Severity in $ Thousands FL AL GA NC SC TN All states except Florida are based on limited data Based on NCCI s financial data for lost-time claims 74

75 Florida Distribution of Claims by Injury Type 74% 17% 9% 0% 76% 14% 10% 0% 75% 15% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Medical Only Temporary Total Permanent Partial Fatal & Permanent Total Regional states are AL, GA, NC, SC, and TN Based on NCCI s Statistical Plan data for jurisdiction/claim type combinations for which three or more cases exist 75

76 Florida Indemnity Loss Distribution by Injury Type 43% 42% 13% 2% 40% 55% 3% 2% 33% 57% 4% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Temporary Total Permanent Partial Permanent Total Fatal Regional states are AL, GA, NC, SC, and TN Based on NCCI s Statistical Plan data for jurisdiction/claim type combinations for which three or more cases exist 76

77 Florida Medical Loss Distribution by Injury Type 34% 35% 18% 12% 1% 33% 47% 8% 11% 1% 30% 47% 9% 13% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Temporary Total Permanent Partial Permanent Total Medical Only Fatal Regional states are AL, GA, NC, SC, and TN Based on NCCI s Statistical Plan data for jurisdiction/claim type combinations for which three or more cases exist 77

78 Glossary

79 Glossary Assigned Risk Adjustment Program (ARAP) An assigned risk market program that surcharges residual market risks based on the magnitude of their experience rating modification. Calendar Year (CY) Experience of earned premium and loss transactions occurring within the calendar year beginning January 1, irrespective of the contractual dates of the policies to which the transactions relate and the dates of the accidents. Calendar-Accident Year (AY) The accumulation of loss data on all accidents with the date of occurrence falling within a given calendar year. The premium figure is the same as that used in calendar year experience. Claim Frequency The number of claims per unit of exposure; for example, the number of claims per million dollars of premium or per 100 workers. 79

80 Glossary Claim Severity The average cost of a claim. Severity is calculated by dividing total losses by the total number of claims. Combined Ratio The sum of the (1) loss ratio, (2) expense ratio, and (3) dividend ratio for a given time period. Detailed Claim Information (DCI) An NCCI Call that collects detailed information on an individual workers compensation losttime claim basis, such as type of injury, whether or not an attorney was involved, timing of the claim s report to the carrier, etc. Direct Written Premium (DWP) The gross premium income adjusted for additional or return premiums, but excluding any reinsurance premiums. 80

81 Glossary Indemnity Benefits Payments by an insurance company to cover an injured worker s time lost from work. These benefits are also referred to as wage replacement benefits. Loss Ratio The ratio of losses to premium for a given time period. Lost-Time (LT) Claims Claims resulting in indemnity benefits (and usually medical benefits) being paid to or on behalf of the injured worker for time lost from work. Medical-Only Claims Claims resulting in only medical benefits being paid on behalf of an injured worker. Net Written Premium (NWP) The gross premium income adjusted for additional or return premiums and including any additions for reinsurance assumed and any deductions for reinsurance ceded. 81

82 Glossary Permanent Partial (PP) A disability that is permanent but does not involve a total inability to work. The specific definition and associated workers compensation benefits are defined by statute and vary by jurisdiction. Policy Year (PY) The year of the effective date of the policy. Policy year financial results summarize experience for all policies with effective dates in a given calendar year period. Schedule Rating A debit and credit plan that recognizes variations in the hazard-causing features of an individual risk. Take-Out Credit Program An assigned risk program that encourages carriers to write current residual market risks in the competitive voluntary marketplace. Temporary Total (TT) A disability that totally disables a worker for a temporary period of time. 82

83 Appendix

84 NCCI s Workers Compensation Resources Financial Aggregate Calls Used for aggregate ratemaking Statistical Plan for Workers Compensation and Employers Liability Insurance (Statistical Plan) Used for class ratemaking Detailed Claim Information In-depth sample of lost-time claims Policy Data Policy declaration page information 84

85 Financial Aggregate Calls Collected Annually Policy and calendar-accident year basis Statewide and assigned risk data Premiums, Losses, and Claim Counts Evaluated as of December 31 Purpose Basis for overall aggregate rate indication Research 85

86 Policy Year Financial Aggregate Data Policy Expiration Date Policy Year 2014 Policy Year 2015 Policy Year /1/2014 1/1/ /31/2015 1/1/ /31/2018 Policy Effective Date 86

87 Calendar-Accident Year Financial Aggregate Data Policy Expiration Date Calendar- Accident Year 2015 Calendar- Accident Year 2016 Calendar- Accident Year /1/2015 1/1/ /31/2016 1/1/ /31/2019 Policy Effective Date 87

88 Statistical Plan for Workers Compensation and Employers Liability Insurance (Statistical Plan) Data Experience by Policy Detail Exposure, premium, and experience rating modifications Individual claims by injury type Purposes Classification relativities Experience Rating Plan Research 88

89 Valuation of Statistical Plan Data 1st Report Valuation 2nd Report Valuation 3rd Report Valuation 4th Report Valuation 5th Report Valuation Policy Effective 18 Months 30 Months 42 Months 54 Months 66 Months 89