Data Collection Agency Workers Compensation Insurances Statewide Average Pure Premium Michigan (2018) Table of Contents 1. Circular Letter 2. Class Code Rating Values 3. Footnotes 4. Miscellaneous Values 5. Weighting & Ballast Values 6. Retrospective Rating Plans
COMPENSATION ADVISORY ORGANIZATION OF MICHIGAN P.O. Box 3337 Livonia, MI 48151-3337 (734) 462-9600 Fax (734) 462-9721 Internet WEB Site: www.caom.com E-Mail: caom@caom.com September 21, 2017 CIRCULAR LETTER #296 TO ALL MEMBERS RE: DATA COLLECTION AGENCY WORKERS COMPENSATION INSURANCE STATEWIDE AVERAGE PURE PREMIUM MICHIGAN EFFECTIVE JANUARY 1, 2018 - NEW AND RENEWAL BUSINESS ONLY Dear Member: This is to inform you that the enclosed statewide average pure premiums have been prepared in compliance with the Michigan Insurance Code. The indicated 1/1/2018 pure premiums represent an average decrease of 9.3% from the pure premiums effective 1/1/2017. The components of this change are as follows: Experience and Benefits -9.0% Loss Based Expense -0.3% Overall -9.3% By industry group, the average pure premium level changes are: Manufacturing -11.1% Contracting -10.1% Office & Clerical -9.2% Goods & Services -9.3% Miscellaneous -6.0% Within each industry group, the changes will vary from the average classification depending upon the volume and character of the particular classification experience. Changes in certain miscellaneous rating values were made in proportion to the changes in the Michigan State Average Weekly Wage. IMPORTANT: These pure premiums are advisory. They are neither manual nor gross rates, but instead represent loss and loss adjustment costs per $100 of payroll. In accordance with the Michigan Insurance Code, the pure premiums exclude the following elements: a) Trend factors b) Profits c) Expenses, except loss adjustment expenses
CIRCULAR LETTER #296 Page 2 While provisions for general expenses; acquisition and field supervision expenses, taxes, licenses and fees, and profits and contingencies have been excluded, provisions for loss based expenses have been included. This year s pure premium analysis is based on data from the two most recent complete Policy Years (2015 & 2014). No material changes to the methodology were recognized in this year s analysis. The 5-year average for paid+case loss development factors continues to be utilized, after changing from the 3-year index effective 1/1/2015. Section C of Part III of this publication contains the indications based on several alternative methodologies, including methods using Accident Year 2016, as well as various loss development methodologies. Under Michigan s filing requirements, carriers may utilize the Data Collection Agency (DCA) pure premiums along with their own expense loadings, and they may introduce factors to consider different workers compensation experience. Carriers may introduce trend factors if they choose, and are also permitted to make their own rates completely independent of the DCA pure premiums. EXPERIENCE RATING NOTE: If your company plans to file any changes to its current Experience Rating Plan, including new ELR s and associated rating values, please notify us accordingly and submit a Rating Values form located here, https://caom.com/forms/rating-values-form Presently, we are planning on delaying the January modification promulgation until October 16 th in order to allow for the new values to be implemented. There are no additions to or deletions from the standard class codes included in this year s publication relative to last year. Volume I + II data, including Appendices B-II (Michigan A Sheets) and C-VI (Michigan Schedule Z Data) are available on our website in the member's only area. These sections contain the individual class experience. If you are your company s designated actuarial contact authorized to receive this background DCA data and have trouble accessing this area on our website, please contact our office. Respectfully yours, CAOM Team
Exhibit III MICHIGAN WORKERS COMPENSATION AND EMPLOYERS LIABILITY Page S1 CLASS LOSS D CLASS LOSS D CLASS LOSS D CLASS LOSS D CODE COST ELR RATIO CODE COST ELR RATIO CODE COST ELR RATIO CODE COST ELR RATIO 0005 2.35 1.35 0.45 2797 1.45 0.83 0.46 3635 1.33 0.76 0.45 4923 0.74 0.41 0.45 0011 1.99 1.12 0.42 2802 2.32 1.31 0.42 3638 0.73 0.44 0.49 5020 4.10 2.21 0.36 0034 1.46 0.84 0.46 2812 1.91 1.09 0.45 3643 1.43 0.82 0.45 5022 4.50 2.31 0.33 0035 1.22 0.72 0.49 2841 2.08 1.22 0.48 3648 0.80 0.48 0.49 5038a a a a 0042 3.23 1.81 0.42 2881 1.30 0.78 0.53 3681 0.91 0.53 0.48 5040 7.66 3.65 0.29 0106 5.20 2.70 0.33 2915 1.88 1.05 0.42 3685 0.68 0.40 0.48 5057 2.03 0.97 0.29 0128 1.73 0.99 0.45 3004 0.66 0.35 0.37 3724 2.29 1.18 0.33 5059 15.60 7.50 0.29 0129 1.71 0.99 0.46 3018 2.49 1.37 0.37 3726 2.61 1.24 0.29 5102 3.32 1.71 0.33 0130 1.54 0.86 0.37 3022 1.89 1.11 0.48 3807 1.21 0.71 0.48 5146 3.26 1.75 0.36 0141 1.21 0.73 0.49 3027 1.82 1.00 0.37 3808 1.47 0.83 0.42 5160 1.16 0.58 0.33 0908P 89.00 51.10 0.45 3028 1.75 1.00 0.45 3821 5.78 3.26 0.42 5183 2.04 1.10 0.37 0909P 185.00 107.95 0.48 3030 2.89 1.58 0.37 3824 1.82 1.03 0.42 5188 1.85 1.00 0.37 0912P 230.00 135.21 0.49 3040 3.20 1.74 0.37 3827 0.73 0.42 0.41 5190 1.51 0.82 0.37 0913P 261.00 148.64 0.45 3064 2.34 1.33 0.45 4000 2.95 1.54 0.33 5191 0.62 0.35 0.45 1164 1.44 0.69 0.29 3066 3.10 1.78 0.46 4024 2.56 1.39 0.37 5192 2.14 1.23 0.45 1320 0.91 0.48 0.33 3076 1.61 0.95 0.49 4034 6.66 3.64 0.37 5213 3.55 1.82 0.33 1322 5.31 2.72 0.33 3081 1.98 1.08 0.37 4036 1.51 0.82 0.37 5215 4.96 2.76 0.41 1438 2.49 1.29 0.33 3082 2.86 1.57 0.37 4130 1.78 1.01 0.45 5221 3.04 1.64 0.37 1463 3.91 2.01 0.33 3085 1.86 1.01 0.37 4131 0.88 0.52 0.49 5222 5.65 2.89 0.33 1624 1.97 1.01 0.33 3095 1.16 0.67 0.45 4150 0.47 0.28 0.53 5223 3.51 1.89 0.37 1701 1.06 0.57 0.37 3096 1.45 0.83 0.46 4207 0.82 0.45 0.36 5348 3.52 1.89 0.37 1748 1.82 1.00 0.37 3110 3.27 1.88 0.45 4239 1.22 0.66 0.37 5403 5.10 2.65 0.33 1925 3.31 1.88 0.42 3111 1.97 1.14 0.46 4240 1.58 1.03 0.48 5437 3.72 2.01 0.37 2003 1.82 1.04 0.45 3113 1.40 0.81 0.45 4243 1.23 0.71 0.45 5445 3.34 1.70 0.33 2014 4.07 2.21 0.37 3114 2.01 1.16 0.45 4244 1.58 0.91 0.46 5462 2.82 1.53 0.37 2016 1.11 0.65 0.48 3116 1.90 1.09 0.46 4250 1.72 0.99 0.45 5476 4.04 2.08 0.33 2021 1.35 0.75 0.42 3131 0.97 0.56 0.46 4251 1.26 0.72 0.45 5479 3.77 2.10 0.41 2041 1.46 0.85 0.48 3132 1.05 0.60 0.45 4253 1.32 0.76 0.45 5480 3.48 1.77 0.33 2065 1.02 0.59 0.45 3145 1.20 0.69 0.46 4273 1.47 0.84 0.45 5506 3.25 1.55 0.29 2070 1.83 1.05 0.45 3146 1.52 0.88 0.45 4279 1.78 1.02 0.46 5507 2.25 1.16 0.33 2081 1.79 1.03 0.46 3169 1.46 0.84 0.46 4299 1.07 0.63 0.48 5509 3.33 1.62 0.29 2095 1.57 0.90 0.45 3179 0.69 0.41 0.48 4304 3.10 1.75 0.42 5538 2.73 1.48 0.37 2105 2.11 1.25 0.49 3188 1.36 0.79 0.48 4307 0.87 0.53 0.53 5550 2.32 1.27 0.37 2110 1.36 0.79 0.48 3241 1.65 0.95 0.45 4351 0.42 0.24 0.46 5551 11.56 5.60 0.29 2111 1.47 0.85 0.48 3257 1.68 0.97 0.46 4360 0.93 0.55 0.48 5552 8.71 4.13 0.29 2121 0.98 0.57 0.46 3303 1.12 0.66 0.48 4361 0.65 0.38 0.48 5606 0.85 0.44 0.33 2131 0.93 0.53 0.45 3306 3.41 1.94 0.45 4410 1.89 1.09 0.46 5610 2.72 1.56 0.45 2143 1.35 0.78 0.48 3307 2.26 1.30 0.45 4452 1.33 0.77 0.46 5645 7.30 3.81 0.33 2157 3.08 1.76 0.45 3315 1.48 0.86 0.48 4459 1.38 0.79 0.46 6204 5.20 2.71 0.33 2380 1.29 0.75 0.46 3341 0.44 0.24 0.37 4470 0.79 0.45 0.45 6216 3.68 1.76 0.29 2501 1.70 0.98 0.46 3365 2.25 1.23 0.37 4484 1.32 0.76 0.46 6217 3.30 1.69 0.33 2503 0.70 0.42 0.48 3372 2.10 1.18 0.42 4511 0.33 0.18 0.42 6229 2.79 1.45 0.33 2576 1.18 0.69 0.48 3383 0.73 0.43 0.48 4557 1.12 0.66 0.48 6235 6.04 2.90 0.29 2585 1.46 0.85 0.48 3400 1.80 1.01 0.42 4558 0.80 0.46 0.46 6306 3.52 1.82 0.33 2586 1.25 0.71 0.45 3507 1.27 0.73 0.46 4568 0.77 0.42 0.37 6319 1.66 0.85 0.33 2587 1.19 0.70 0.48 3548 0.51 0.29 0.45 4583 2.14 1.11 0.33 6325 3.44 1.77 0.33 2623 3.35 1.87 0.41 3559 0.99 0.57 0.46 4611 0.48 0.28 0.48 6400 4.53 2.53 0.42 2660 0.91 0.54 0.49 3574 0.47 0.27 0.48 4692 0.33 0.20 0.48 6504 1.36 0.79 0.48 2683 1.03 0.61 0.48 3581 0.68 0.40 0.48 4693 0.47 0.27 0.45 6702M 3.15 1.59 0.33 2688 1.58 0.92 0.48 3612 1.08 0.60 0.42 4712 0.79 0.46 0.45 6703M 4.42 2.24 0.33 2702 5.05 2.44 0.29 3620 1.73 0.95 0.37 4720 1.56 0.89 0.45 6704M 3.50 1.78 0.33 2709 5.13 2.77 0.37 3628 1.47 0.82 0.42 4825 0.51 0.27 0.37 6801F 3.20 1.72 0.37 2731 3.34 1.84 0.37 3629 1.25 0.73 0.48 4828 0.80 0.45 0.42 6824F 9.24 8.41 0.34 2759 3.46 2.03 0.49 3632 1.97 1.10 0.42 4829 0.32 0.17 0.33 6826F 4.23 2.28 0.37 2790 0.88 0.51 0.48 3634 0.85 0.50 0.49 4902 1.26 0.74 0.49 6834 1.28 0.72 0.41 9/2017 Note: D-ratios reflect a $16,500 split point.
Exhibit III MICHIGAN WORKERS COMPENSATION AND EMPLOYERS LIABILITY Page S2 CLASS LOSS D CLASS LOSS D CLASS LOSS D CLASS LOSS D CODE COST ELR RATIO CODE COST ELR RATIO CODE COST ELR RATIO CODE COST ELR RATIO 6836 1.80 0.99 0.37 7540 2.10 1.03 0.29 8709F 6.50 4.69 0.29 6843F 7.87 3.80 0.29 7580 0.79 0.43 0.37 8720 0.82 0.45 0.37 6845F 7.44 3.55 0.29 7600 3.16 1.71 0.37 8726F 3.76 1.90 0.36 6872F 10.74 6.08 0.29 7610 0.41 0.22 0.41 8734M 0.40 0.24 0.47 6874F 15.18 7.26 0.29 7704 3.65 1.92 0.34 8737M 0.36 0.20 0.47 7016M 1.25 0.59 0.29 7720* 1.12 0.61 0.37 8738M 0.50 0.30 0.48 7024M 1.39 0.66 0.29 7904 3.12 1.62 0.33 8742 0.14 0.08 0.36 7038M 2.05 1.02 0.29 7920 0.17 0.10 0.47 8745 2.18 1.23 0.42 7046M 4.91 2.32 0.29 7979 0.89 0.51 0.47 8748 0.33 0.18 0.42 7047M 1.76 0.83 0.29 7980 1.69 0.94 0.42 8755 0.16 0.09 0.36 7050M 2.87 1.43 0.29 8001 1.08 0.63 0.49 8800 0.81 0.49 0.53 7090M 2.27 1.13 0.29 8006 1.10 0.63 0.45 8803 0.03 0.02 0.34 7098M 5.47 2.58 0.29 8008 0.50 0.29 0.49 8805M 0.20 0.12 0.47 7099M 6.90 3.26 0.29 8010 0.71 0.42 0.48 8810 0.08 0.04 0.47 7151M 5.08 2.72 0.36 8013 0.18 0.10 0.44 8814M 0.18 0.11 0.47 7152M 7.12 3.81 0.36 8015 0.60 0.34 0.45 8815M 0.26 0.15 0.47 7153M 5.65 3.02 0.36 8017 0.72 0.42 0.48 8820 0.08 0.04 0.45 7202 4.64 2.50 0.37 8018 1.55 0.91 0.48 8829 1.49 0.86 0.45 7206 5.00 2.69 0.37 8021 1.61 0.92 0.46 8831 0.73 0.43 0.46 7208 6.35 3.42 0.36 8031 1.26 0.72 0.45 8832 0.16 0.09 0.44 7210 6.76 3.65 0.37 8032 1.30 0.76 0.49 8833 0.78 0.45 0.46 7212 2.54 1.46 0.45 8033 1.15 0.66 0.46 8835 1.45 0.83 0.45 7213 5.74 2.95 0.33 8039 0.83 0.49 0.48 8837 1.00 0.58 0.46 7214 4.58 2.47 0.37 8044 1.75 0.97 0.42 8868 0.24 0.14 0.50 7215 5.77 3.12 0.37 8045 0.39 0.23 0.47 8869 0.27 0.16 0.49 7216 5.69 2.97 0.33 8046 1.10 0.64 0.46 8901 0.08 0.04 0.45 7218 10.39 5.64 0.37 8047 0.52 0.30 0.48 9015 2.03 1.17 0.46 7219 3.54 1.81 0.33 8050 0.64 0.37 0.47 9040 1.57 0.91 0.49 7220 1.98 1.08 0.37 8058 1.41 0.81 0.46 9052 0.99 0.58 0.49 7230 3.58 2.01 0.42 8059 1.77 1.04 0.48 9053 1.62 0.95 0.48 7231 4.77 2.65 0.41 8102 1.32 0.77 0.48 9058 0.70 0.42 0.53 7309F 11.85 5.73 0.29 8106 2.75 1.51 0.37 9060 1.08 0.63 0.49 7313F 2.68 1.29 0.29 8107 1.32 0.72 0.37 9061 0.94 0.56 0.53 7317F 8.65 4.17 0.29 8111 1.08 0.62 0.45 9063 0.55 0.33 0.48 7333M 4.68 2.20 0.29 8116 1.44 0.82 0.45 9065 0.54 0.32 0.48 7335M 5.20 2.45 0.29 8209 1.70 0.98 0.46 9093 0.71 0.42 0.49 7337M 6.56 3.09 0.29 8215 1.62 0.88 0.37 9101 1.55 0.91 0.48 7350F 24.35 10.89 0.33 8227 2.97 1.43 0.29 9102 2.11 1.22 0.45 7360 2.51 1.37 0.37 8232 2.92 1.60 0.37 9154 0.65 0.38 0.45 7380 3.00 1.67 0.42 8235 2.44 1.40 0.45 9156 0.90 0.51 0.42 7382 1.64 0.95 0.46 8264 2.99 1.65 0.37 9220 2.39 1.34 0.41 7390 2.44 1.40 0.45 8265 4.16 2.17 0.33 9402 2.93 1.59 0.37 7394M 1.39 0.65 0.29 8279 3.32 1.75 0.34 9403 4.26 2.20 0.33 7395M 1.54 0.72 0.29 8291 1.69 0.95 0.42 9410 0.77 0.45 0.46 7398M 1.94 0.92 0.29 8292 2.67 1.54 0.46 9501 1.31 0.74 0.42 7403 2.81 1.54 0.37 8293 10.60 5.76 0.37 9519 3.35 1.81 0.37 7405 0.72 0.39 0.37 8304 2.71 1.48 0.37 9521 1.84 1.00 0.37 7421 0.38 0.21 0.34 8350 2.57 1.33 0.33 9522 1.32 0.76 0.45 7422 0.81 0.38 0.29 8381 0.77 0.43 0.42 9529a a a a 7423 1.67 0.89 0.36 8387 1.82 1.02 0.42 9530 1.70 0.80 0.29 7502 0.99 0.54 0.37 8392 1.22 0.70 0.45 9558 3.77 2.03 0.36 7515 0.91 0.43 0.29 8393 1.35 0.77 0.45 9559 1.56 0.81 0.33 7520 1.20 0.69 0.45 8395 1.61 0.90 0.42 9586 0.22 0.13 0.53 7538 2.76 1.34 0.29 8401 0.42 0.23 0.41 9620 0.56 0.32 0.42 7539 0.58 0.30 0.33 8601 0.26 0.15 0.41 * Refer to the Footnotes Page for additional information on this class code. Note: D-ratios reflect a $16,500 split point. 9/2017
WORKERS COMPENSATION AND EMPLOYERS LIABILITY MICHIGAN Exhibit III Page 3 FOOTNOTES a F M See instructions for rating in classification section under code description. Pure premium provides for coverage under the United States Longshore and Harbor Workers Compensation Act and its extensions. The pure premium contains a provision for the USL & HW assessment. Pure premium provides for coverage under Admiralty Law and Federal Employers' Liability Act (FELA). A provision for the USL & HW assessment is included for those classifications under Program II USL Act. The following classes are grouped by category for ratemaking purposes: Category Program I Program II State Program II USL&HW Railroad Construction 6702 6704 6703 Vessels - NOC 7016 7024 7047 Boats- Livery - Under 15 ton 7038 7090 7050 Vessels - Not Self-Propelled 7046 7098 7099 Railroad Operations 7151 7153 7152 Dredging - All Types 7333 7335 7337 Diving, Salvage, Wrecking - Marine 7394 7395 7398 Railroad: Sales, Collectors or Messenger 8737 8734 8738 Railroad: Clerical Office - NOC 8814 8805 8815 Pure Premiums are derived based on Program II State and then adjusted to Program I by a factor of.900 and Program II USL & HW by a factor of 1.262. P Classification is computed on a per capita basis. * Class codes with special footnotes: 7720 When part-time or volunteer police officers are employed, the actual remuneration of all such persons shall be included with the payroll of regular police officers in computing the premium. In no case, however, shall the remuneration of any such police officers be taken at less than $400 per person per annum.
WORKERS COMPENSATION AND EMPLOYERS LIABILITY MICHIGAN Exhibit III Page 4 MISCELLANEOUS VALUES Basis of premium applicable in accordance with the footnote instructions for Code 7220 -- "Taxicab Co. - Drivers": $30,700.00 Remuneration for Executive Officers Active Members LLC's Minimum $483/wk Athletic Teams and Traveling Carnivals Maximum $1,900/wk Remuneration for Spouse of Sole Proprietors - fixed amount Remuneration for Partners - fixed amount $19,800/yr $19,800/yr The loss costs on Exhibit III do not include pure premiums for foreign or domestic terrorism. The Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2015 provides for partial reimbursement by the United States for insured workers compensation losses due to terrorism. Additional insurer loss liability exists under TRIPRA because TRIPRA provides partial reimbursement. In addition, TRIPRA is scheduled to expire at year-end 2020. United States Longshore and Harbor Workers' Compensation Coverage percentage applicable only in connection with Rule XI-D-3 "U.S. Longshore and Harbor Workers' Compensation Act" of the Basic Manual. 68% (Multiply a Non-'F' classification advisory loss cost by a factor of 1.68. This factor adjusts for the differences in state and federal benefits and assessments. The factor to adjust for differences in benefits only is 1.61).
WORKERS COMPENSATION AND EMPLOYERS LIABILITY MICHIGAN Exhibit III Page 5 MISCELLANEOUS VALUES (continued) Loss Elimination Ratios for employers electing a $ deductible: The following percentages are applicable on a per claim basis by hazard group. These represent the percentage of loss eliminated by a selected deductible Hazard Group A B C D E F G $500 25.2% 20.1% 17.6% 13.2% 8.5% 5.9% 4.2% $750 26.0% 20.8% 18.2% 13.7% 8.9% 6.3% 4.4% $1,000 26.9% 21.5% 18.8% 14.2% 9.4% 6.6% 4.7% $1,500 28.5% 22.7% 20.0% 15.2% 10.3% 7.4% 5.1% $2,000 30.1% 24.0% 21.1% 16.3% 11.2% 8.1% 5.6% $2,500 31.5% 25.2% 22.2% 17.2% 12.0% 8.8% 6.0% NOTE: Basic Manual refers to the Basic Manual for Michigan Workers' Compensation.
EXHIBIT III MICHIGAN EXPERIENCE RATING PLAN MANUAL PART FIVE TABLE OF WEIGHTING VALUES Page 6 APPLICABLE TO ALL POLICIES Expected Weighting Expected Weighting Losses Values Losses Values 0-1,382 0.04 779,388-822,378 0.44 1,383-5,587 0.05 822,379-867,857 0.45 5,588-9,882 0.06 867,858-916,049 0.46 9,883-14,270 0.07 916,050-967,204 0.47 14,271-18,754 0.08 967,205-1,021,603 0.48 18,755-31,367 0.09 1,021,604-1,079,567 0.49 31,368-46,692 0.10 1,079,568-1,141,458 0.50 46,693-60,323 0.11 1,141,459-1,207,690 0.51 60,324-73,594 0.12 1,207,691-1,278,736 0.52 73,595-86,868 0.13 1,278,737-1,355,141 0.53 86,869-100,305 0.14 1,355,142-1,437,537 0.54 100,306-113,997 0.15 1,437,538-1,526,656 0.55 113,998-128,005 0.16 1,526,657-1,623,358 0.56 128,006-142,376 0.17 1,623,359-1,728,653 0.57 142,377-157,148 0.18 1,728,654-1,843,740 0.58 157,149-172,357 0.19 1,843,741-1,970,054 0.59 172,358-188,036 0.20 1,970,055-2,109,320 0.60 188,037-204,216 0.21 2,109,321-2,263,640 0.61 204,217-220,930 0.22 2,263,641-2,435,595 0.62 220,931-238,211 0.23 2,435,596-2,628,390 0.63 238,212-256,095 0.24 2,628,391-2,846,060 0.64 256,096-274,617 0.25 2,846,061-3,093,751 0.65 274,618-293,815 0.26 3,093,752-3,378,134 0.66 293,816-313,732 0.27 3,378,135-3,708,017 0.67 313,733-334,409 0.28 3,708,018-4,095,267 0.68 334,410-355,895 0.29 4,095,268-4,556,278 0.69 355,896-378,238 0.30 4,556,279-5,114,340 0.70 378,239-401,495 0.31 5,114,341-5,803,708 0.71 401,496-425,722 0.32 5,803,709-6,676,904 0.72 425,723-450,984 0.33 6,676,905-7,818,773 0.73 450,985-477,350 0.34 7,818,774-9,375,862 0.74 477,351-504,895 0.35 9,375,863-11,624,987 0.75 504,896-533,700 0.36 11,624,988-15,159,320 0.76 533,701-563,856 0.37 15,159,321-21,521,112 0.77 563,857-595,460 0.38 21,521,113-36,365,281 0.78 595,461-628,620 0.39 36,365,282-110,586,089 0.79 628,621-663,455 0.40 110,586,090 AND OVER 0.80 663,456-700,095 0.41 700,096-738,685 0.42 738,686-779,387 0.43 (a) State Per Claim Accident Limitation................................................... $165,000 (b) State Multiple Claim Accident Limitation................................................ $330,000 (c) USL&HW Per Claim Accident Limitation................................................ $831,500 (d) USL&HW Multiple Claim Accident Limitation............................................. $1,663,000 (e) Employers Liability Accident Limitation................................................. $60,000 (f) USL&HW Act -- Expected Loss Factor -- Non-F Classes................................... 61% Cap on Modifications = 1.1 + (0.0004) x [(Expected Losses) / (6.60)]
EXHIBIT III MICHIGAN EXPERIENCE RATING PLAN MANUAL PART FIVE TABLE OF BALLAST VALUES Page 7 APPLICABLE TO ALL POLICIES Expected Ballast Expected Ballast Expected Ballast Losses Values Losses Values Losses Values 0-35,500 16,500 1,139,167-1,172,147 132,000 2,293,832-2,326,826 247,500 35,501-61,099 19,800 1,172,148-1,205,130 135,300 2,326,827-2,359,822 250,800 61,100-90,513 23,100 1,205,131-1,238,113 138,600 2,359,823-2,392,817 254,100 90,514-121,542 26,400 1,238,114-1,271,097 141,900 2,392,818-2,425,813 257,400 121,543-153,326 29,700 1,271,098-1,304,082 145,200 2,425,814-2,458,809 260,700 153,327-185,509 33,000 1,304,083-1,337,068 148,500 2,458,810-2,491,805 264,000 185,510-217,925 36,300 1,337,069-1,370,054 151,800 2,491,806-2,524,801 267,300 217,926-250,488 39,600 1,370,055-1,403,041 155,100 2,524,802-2,557,797 270,600 250,489-283,149 42,900 1,403,042-1,436,029 158,400 2,557,798-2,590,793 273,900 283,150-315,878 46,200 1,436,030-1,469,017 161,700 2,590,794-2,623,790 277,200 315,879-348,657 49,500 1,469,018-1,502,005 165,000 2,623,791-2,656,786 280,500 348,658-381,474 52,800 1,502,006-1,534,995 168,300 2,656,787-2,689,782 283,800 381,475-414,319 56,100 1,534,996-1,567,984 171,600 2,689,783-2,722,779 287,100 414,320-447,187 59,400 1,567,985-1,600,974 174,900 2,722,780-2,755,776 290,400 447,188-480,072 62,700 1,600,975-1,633,965 178,200 2,755,777-2,788,772 293,700 480,073-512,972 66,000 1,633,966-1,666,956 181,500 2,788,773-2,821,769 297,000 512,973-545,884 69,300 1,666,957-1,699,947 184,800 2,821,770-2,854,766 300,300 545,885-578,806 72,600 1,699,948-1,732,938 188,100 2,854,767-2,887,763 303,600 578,807-611,736 75,900 1,732,939-1,765,930 191,400 2,887,764-2,920,760 306,900 611,737-644,674 79,200 1,765,931-1,798,922 194,700 2,920,761-2,953,757 310,200 644,675-677,617 82,500 1,798,923-1,831,915 198,000 2,953,758-2,986,754 313,500 677,618-710,565 85,800 1,831,916-1,864,907 201,300 2,986,755-3,019,752 316,800 710,566-743,518 89,100 1,864,908-1,897,900 204,600 3,019,753-3,052,749 320,100 743,519-776,475 92,400 1,897,901-1,930,893 207,900 3,052,750-3,085,746 323,400 776,476-809,436 95,700 1,930,894-1,963,887 211,200 3,085,747-3,118,744 326,700 809,437-842,399 99,000 1,963,888-1,996,880 214,500 3,118,745-3,151,741 330,000 842,400-875,366 102,300 1,996,881-2,029,874 217,800 875,367-908,334 105,600 2,029,875-2,062,868 221,100 908,335-941,305 108,900 2,062,869-2,095,862 224,400 941,306-974,278 112,200 2,095,863-2,128,857 227,700 974,279-1,007,253 115,500 2,128,858-2,161,851 231,000 1,007,254-1,040,229 118,800 2,161,852-2,194,846 234,300 1,040,230-1,073,207 122,100 2,194,847-2,227,841 237,600 1,073,208-1,106,186 125,400 2,227,842-2,260,836 240,900 1,106,187-1,139,166 128,700 2,260,837-2,293,831 244,200 For Expected Losses greater than 3,151,741, the Ballast Value can be calculated using the following formula (rounded to the nearest 1): Ballast = (0.10) x (Expected Losses) + 2500 x (Expected Losses) x (6.60) / [Expected Losses + (700) x (6.60)] Cap on Modifications = 1.1 + (0.0004) x [(Expected Losses) / (6.60)]
RETROSPECTIVE RATING PLAN MANUAL Michigan STATE SPECIAL RATING VALUES RR 1 Original Printing 1. Hazard Group Differentials* A B C D E F G 1.96 1.59 1.47 1.24 1.06 0.88 0.77 2. 2013 Table of Expected Loss Ranges* Effective January 1, 2013 3. Excess Loss Pure Premium Factors (Applicable to New and Renewal Policies) Per Accident Hazard Groups Limitation A B C D E F G $10,000 0.523 0.565 0.581 0.617 0.652 0.681 0.695 $15,000 0.469 0.514 0.530 0.570 0.608 0.641 0.658 $20,000 0.426 0.473 0.490 0.531 0.571 0.607 0.626 $25,000 0.392 0.439 0.457 0.498 0.539 0.577 0.598 $30,000 0.364 0.410 0.428 0.470 0.512 0.551 0.573 $35,000 0.340 0.386 0.403 0.445 0.487 0.527 0.551 $40,000 0.319 0.365 0.382 0.424 0.465 0.506 0.531 $50,000 0.285 0.329 0.346 0.387 0.428 0.469 0.496 $75,000 0.228 0.268 0.284 0.321 0.360 0.401 0.429 $100,000 0.192 0.228 0.242 0.277 0.314 0.353 0.381 $125,000 0.166 0.199 0.213 0.245 0.280 0.317 0.345 $150,000 0.147 0.178 0.191 0.221 0.253 0.289 0.316 $175,000 0.132 0.161 0.173 0.201 0.232 0.266 0.293 $200,000 0.120 0.147 0.158 0.185 0.214 0.247 0.273 $225,000 0.110 0.135 0.146 0.171 0.199 0.230 0.257 $250,000 0.102 0.126 0.136 0.160 0.187 0.216 0.242 $275,000 0.094 0.117 0.127 0.150 0.176 0.204 0.229 $300,000 0.088 0.110 0.119 0.141 0.166 0.194 0.218 $325,000 0.083 0.104 0.113 0.134 0.157 0.184 0.208 $350,000 0.078 0.098 0.107 0.127 0.150 0.175 0.199 $375,000 0.073 0.093 0.101 0.120 0.143 0.168 0.191 $400,000 0.070 0.088 0.096 0.115 0.136 0.161 0.183 $425,000 0.066 0.084 0.092 0.110 0.131 0.154 0.176 $450,000 0.063 0.080 0.088 0.105 0.125 0.148 0.170 $475,000 0.060 0.077 0.084 0.101 0.121 0.143 0.164 $500,000 0.057 0.074 0.081 0.097 0.116 0.138 0.159 $600,000 0.049 0.063 0.070 0.084 0.101 0.121 0.140 $700,000 0.042 0.055 0.061 0.074 0.090 0.108 0.126 $800,000 0.037 0.049 0.054 0.066 0.081 0.097 0.114 $900,000 0.033 0.044 0.049 0.060 0.073 0.089 0.105 $1,000,000 0.030 0.040 0.044 0.055 0.067 0.081 0.097 $2,000,000 0.014 0.020 0.022 0.028 0.036 0.044 0.055 $3,000,000 0.009 0.013 0.014 0.018 0.024 0.030 0.038 $4,000,000 0.006 0.009 0.010 0.013 0.017 0.022 0.029 $5,000,000 0.005 0.007 0.008 0.010 0.013 0.017 0.023 $6,000,000 0.004 0.005 0.006 0.008 0.011 0.014 0.019 $7,000,000 0.003 0.004 0.005 0.007 0.009 0.012 0.015 $8,000,000 0.002 0.004 0.004 0.006 0.007 0.010 0.013 $9,000,000 0.002 0.003 0.004 0.005 0.006 0.008 0.011 $10,000,000 0.002 0.003 0.003 0.004 0.006 0.007 0.010 This loss limit is not applicable for retrospective rating in this state * Source: NCCI
RETROSPECTIVE RATING PLAN MANUAL Michigan STATE SPECIAL RATING VALUES RR 2 Original Printing Excess Loss and Allocated Expense Pure Premium Factors (Applicable to New and Renewal Policies) Per Accident Hazard Groups Limitation A B C D E F G $10,000 0.609 0.656 0.672 0.712 0.750 0.781 0.795 $15,000 0.550 0.600 0.618 0.662 0.703 0.739 0.756 $20,000 0.504 0.555 0.574 0.620 0.663 0.702 0.723 $25,000 0.465 0.518 0.537 0.584 0.629 0.670 0.693 $30,000 0.434 0.486 0.506 0.553 0.599 0.642 0.666 $35,000 0.407 0.459 0.478 0.525 0.572 0.616 0.641 $40,000 0.384 0.435 0.455 0.501 0.548 0.593 0.619 $50,000 0.346 0.396 0.414 0.460 0.507 0.552 0.581 $75,000 0.281 0.326 0.344 0.386 0.431 0.476 0.506 $100,000 0.239 0.281 0.297 0.337 0.378 0.422 0.453 $125,000 0.209 0.248 0.263 0.300 0.339 0.381 0.412 $150,000 0.187 0.223 0.237 0.272 0.309 0.349 0.380 $175,000 0.169 0.203 0.217 0.249 0.285 0.323 0.353 $200,000 0.155 0.187 0.200 0.230 0.264 0.301 0.331 $225,000 0.142 0.173 0.185 0.215 0.247 0.283 0.312 $250,000 0.132 0.161 0.173 0.201 0.232 0.267 0.295 $275,000 0.123 0.151 0.163 0.189 0.219 0.253 0.280 $300,000 0.116 0.142 0.153 0.179 0.208 0.240 0.267 $325,000 0.109 0.134 0.145 0.170 0.198 0.229 0.256 $350,000 0.103 0.127 0.138 0.162 0.189 0.219 0.245 $375,000 0.098 0.121 0.131 0.154 0.181 0.210 0.236 $400,000 0.093 0.115 0.125 0.148 0.173 0.202 0.227 $425,000 0.088 0.110 0.120 0.141 0.166 0.194 0.219 $450,000 0.084 0.106 0.115 0.136 0.160 0.187 0.211 $475,000 0.081 0.101 0.110 0.131 0.154 0.180 0.204 $500,000 0.077 0.097 0.106 0.126 0.149 0.174 0.198 $600,000 0.066 0.084 0.092 0.110 0.130 0.154 0.176 $700,000 0.058 0.074 0.081 0.097 0.116 0.138 0.159 $800,000 0.051 0.066 0.072 0.087 0.105 0.125 0.145 $900,000 0.046 0.059 0.065 0.079 0.096 0.114 0.133 $1,000,000 0.041 0.054 0.059 0.072 0.088 0.105 0.123 $2,000,000 0.020 0.027 0.031 0.038 0.047 0.058 0.071 $3,000,000 0.012 0.017 0.020 0.025 0.032 0.040 0.049 $4,000,000 0.009 0.012 0.014 0.018 0.023 0.029 0.037 $5,000,000 0.007 0.009 0.011 0.014 0.018 0.023 0.029 $6,000,000 0.005 0.007 0.008 0.011 0.014 0.019 0.024 $7,000,000 0.004 0.006 0.007 0.009 0.012 0.015 0.020 $8,000,000 0.003 0.005 0.006 0.007 0.010 0.013 0.017 $9,000,000 0.003 0.004 0.005 0.006 0.008 0.011 0.015 $10,000,000 0.002 0.004 0.004 0.006 0.007 0.010 0.013 This loss limit is not applicable for retrospective rating in this state