Changes to Calendar Year 2017 Expense Call (Updated 1/30/2018)

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Changes to Calendar Year 2017 Expense Call (Updated 1/30/2018) At the September 5, 2017 WCIRB s Actuarial Committee meeting, the Committee adopted changes to the Expense Call for implementation beginning with the 2017 Expense Call (CA-EX-2017). The changes include the addition of a new data element on page 4 of the Expense Call as Question 17h which requests for the countrywide number of open indemnity claims for accident years 1989 and forward as of December 31st of the prior calendar year. For example, in the CA-EX-2017 Expense Call, Question 17h requests the countrywide number of open indemnity claims for accident years 1989 and forward as of December 31, 2016. This new data element will assist the WCIRB to better allocate countrywide ULAE to California for pure premium ratemaking purposes. The revised Expense Call and the instructions for submitting the required data elements are provided in the following pages with the changes shown in red font for your information. If you have any questions about the changes, please submit them to escad@wcirb.com. Workers Compensation Insurance Rating Bureau of California. All rights reserved.

Data Call for Direct California Workers Compensation Experience Expense Information for Calendar Year 2017 (CA-EX-2017) R WCIRBCalifornia Due Date: April 26, 2018 I. Expense Exhibit Calendar Year 2017 Amount % of EP 3 Actual Calif. (C) or Apportionment (A) 4 1. Earned Premium 1 2. Incurred Losses 2 3. Incurred Allocated Loss Adjustment Expenses 4. Unallocated Loss Adjustment Expenses a. Incurred b. Paid 5. Commission and Brokerage Incurred 6. Taxes, Licenses and Fees Incurred 7. Other Acquisition Expenses a. Allowances to managers and agents b. Advertising c. Boards, bureaus and associations d. Surveys and underwriting reports e. Audit of assureds' records f. Salary and related items g. Employee relations and welfare h. Insurance i. Directors' fees j. Travel and travel items k. Rent and rent items l. Equipment m. Cost or depreciation of EDP equipment and software n. Printing and stationery o. Postage, telephone and telegraph, exchange and express p. Legal and auditing q. Miscellaneous Total Other Acquisition Expenses (sum of a. to q.) 1. Must agree with Part b, Column (1) Total of Section III, Calendar Year Exhibit of CA-QT-4Q2017. Please go to page 8 for the explanation. 2. Must agree with Column (6), Line (e) "YTD Change" in Section II, Accident Year Exhibit of CA-QT-4Q17. Please go to page 8 for the explanation. 3. % of Earned Premium 4. Actual California (C) or Apportionment (A) Name Title Email Date Filed Telephone No. Mailing Address: Fax No. Group Code Group Name C Workers' Compensation Insurance Rating Bureau of California. All rights reserved. Page 1 of 7

Data Call for Direct California Workers Compensation Experience Expense Information for Calendar Year 2017 (CA-EX-2017) R WCIRBCalifornia Due Date: April 26, 2018 I. Expense Exhibit (continued) Calendar Year 2017 Amount % of EP 3 Actual Calif. (C) or Apportionment (A) 4 8. General Expenses a. Allowances to managers and agents b. Advertising c. Boards, bureaus and associations d. Surveys and underwriting reports e. Audit of assureds' records f. Salary and related items g. Employee relations and welfare h. Insurance i. Directors' fees j. Travel and travel items k. Rent and rent items l. Equipment m. Cost or depreciation of EDP equipment and software n. Printing and stationery o. Postage, telephone and telegraph, exchange and express p. Legal and auditing q. Miscellaneous Total General Expenses (sum of a. to q.) 9. Total All Expenses (sum of 3., 4a., and 5 to 8.) 10. Please report the amount of civil or criminal fines, penalties or punitive damages pertaining to or arising from California workers' compensation. (These amounts are also to be included in items 2 to 8 as appropriate.) 11. Please report the amount of additional fines and penalties pertaining to California workers' compensation. (These amounts are also to be included in items 2 to 8 as appropriate.) 12. Please report the amount of applicant attorney expenses paid pertaining to or arising from California workers' compensation claims. 13. Please report the amount of defense attorney expenses paid pertaining to or arising from California workers' compensation claims. C Workers' Compensation Insurance Rating Bureau of California. All rights reserved. Page 2 of 7

Data Call for Direct California Workers Compensation Experience Expense Information for Calendar Year 2017 (CA-EX-2017) I. Expense Exhibit (continued) 14. Does your company write workers' compensation large deductible policies in any state? If yes, please explain how the premium and losses for these policies were adjusted to a full coverage basis in making apportionments of national workers' compensation expense data to California. Show reconciliation, if appropriate. If this cannot be done using the explanation field below, after submitting this Expense Call please email an attachment with the full reconciliation details and include your reporting group name and code, data call code, and version / revision # to: escad@wcirb.com. R WCIRBCalifornia Due Date: April 26, 2018 15. Does your company act as an assigned risk servicing carrier for workers' compensation in other states? If yes, please explain how reimbursements for assigned risk servicing carrier expenses are accounted for; and if the expense reimbursements are netted against actual expense incurred, explain how national workers' compensation expenses were adjusted to a basis gross of reimbursements. Show reconciliation, if appropriate. If this cannot be done using the explanation field below, after submitting this Expense Call please email an attachment with the full reconciliation details and include your reporting group name and code, data call code, and version / revision # to: escad@wcirb.com. 16. Please provide explanations for any negative amounts reported on this call for 2017 expenses. C Workers' Compensation Insurance Rating Bureau of California. All rights reserved. Page 3 of 7

Data Call for Direct California Workers Compensation Experience Expense Information for Calendar Year 2017 (CA-EX-2017) I. Expense Exhibit (continued) 17. Countrywide Amounts on an IEE Basis R WCIRBCalifornia Due Date: April 26, 2018 For Questions 17a-g, please provide the countrywide (direct business) information from Part III, line 16 of the Insurance Expense Exhibit (IEE) or on a basis that is comparable to IEE information for the calendar year for the insurers that are represented in this Expense Call. (Please use whole dollars.) For Question 17h, please provide on a basis consistent with other open indemnity claim count information provided to the WCIRB (see instructions). a. IEE Incurred ULAE (Adjusting & Other Expenses Incurred or AOE on IEE) $ b. IEE ULAE Reserves (Unpaid AOE on IEE) $ c. Paid ULAE (see instructions) $ d. IEE Incurred Losses $ e. IEE Loss Reserves (Unpaid Losses on IEE) $ f. Paid Losses (see instructions) $ g. Countrywide Paid Loss Below Deductibles (i.e., paid losses up to a loss deductible amount which are not included in reported IEE paid loss amounts) $ h. Countrywide Open Indemnity Claim Counts as of December 31, 2016 for Accident Years 1989 and forward (i.e., end of the prior calendar year) 18. Claims-handling and Other Service Fee Adjustments in ULAE a. Does your company record any negative ULAE amounts in the IEE for reimbursement of claims-handling provided to policyholders (such as for claims below a deductible amount) or other service fees which reduce the amount of ULAE reported on Part III, line 16 of the IEE? b. If Yes, please provide the total amount for which Paid ULAE is reduced on the IEE for all adjustments as described above: 19. Handling of Third-Party Administrator (TPA) Expenses in ULAE (Deductible Policies) a. For business written on a deductible basis, does your company (or the policyholder) make use of TPAs to handle claims below the deductible, for which the associated claims-handling costs or fees of the TPA are not included in ULAE reported on Part III, line 16 of the IEE? $ b. If Yes, please provide the countrywide amount of total calendar year paid losses OR the approximate percentage of business from policies that are handled by TPA on this basis Percentage (%) % 20. Handling of Third-Party Administrator (TPA) Expenses in ULAE (Non-Deductible Policies) a. Does your company make use of TPAs to handle claims on non-deductible policies, for which the associated claims-handling costs or fees of the TPA are not included in ULAE reported on Part III, line 16 of the IEE? b. If Yes, please provide the countrywide amount of total calendar year paid losses OR the approximate percentage of business from policies that are handled by TPA on this basis Percentage (%) C Workers' Compensation Insurance Rating Bureau of California. All rights reserved. Page 4 of 7 %

Data Call for Direct California Workers Compensation Experience Expense Information for Calendar Year 2017 (CA-EX-2017) R WCIRBCalifornia Due Date: April 26, 2018 II. Reconciliation Report Exhibit Direct Earned Premium Direct Incurred Losses 1. Amount from Section I, Expense Exhibit 1 2. Deductible credit or loss deductible amounts excluded from 1 3. Net of Deductible Amount {1. minus 2.} 4. Excess Insurance 5. USL&H Insurance 6. Private Residence Employees Insurance 7. National Defense Projects Insurance 8. Charge For Terrorism Coverage 9. Retrospective Rating Plan Adjustments 10. Voluntary Reserves 11. TOTAL (sum of 3. to 10.) 12. California Annual Statement Exhibit of Premiums and Losses 2 13. Difference (11. minus 12.) 14. Grand Total Annual Statement Exhibit of Premiums and Losses 2 1. Line 1 for premium and line 2 for losses. 2. Statutory Page 14, line 16, column 2 for earned premiums and column 6 for incurred losses. C Workers' Compensation Insurance Rating Bureau of California. All rights reserved. Page 5 of 7

Data Call for Direct California Workers Compensation Experience Expense Information for Calendar Year 2017 (CA-EX-2017) R WCIRBCalifornia Due Date: April 26, 2018 II. Reconciliation Report Exhibit (continued) In the table below, please list each company included in the group separately with the individual insurer Exhibit of Premiums and Losses (Statutory Page 14) California data from the 2017 Annual Statement: 2017 Annual Statement Exhibit of Premiums and Losses (Statutory Page 14) - California Individual Insurers in Group 1 2 3 4 5 Direct Direct Direct Written Premium Earned Premium Dividends Paid Incurred Losses NAIC Code 1. Total: C Workers' Compensation Insurance Rating Bureau of California. All rights reserved. Page 6 of 7

Data Call for Direct California Workers Compensation Experience R WCIRBCalifornia Calendar Year 2017 (CA-EX-2017) Due Date: April 26, 2018 Companies included in the report Code Name Status C Workers' Compensation Insurance Rating Bureau of California. All rights reserved. Page 7 of 7

Instructions Call for Direct California Workers' Compensation Annual Call for Direct California Workers Compensation Expense Information for Calendar Year 20xx (CA-EX-20xx) The information reported must be in accordance with the following: Section I: Expense Exhibit (Pages 1-4): (a) Include experience (premium, losses, claim counts and expenses) from: Deductible policies on a gross (first dollar) basis, except for figures in Questions 17a to 17f which are on a net-of-deductible basis Standard workers compensation policies Employers liability increased limits Minimum premiums Salvage and subrogation (b) Exclude experience (premium, losses, claim counts and expenses) from: Ceded reinsurance Reinsurance assumed Excess insurance USL&H insurance Private residence employee insurance National Defense Project insurance (c) Exclude the impact of the following items from all reported premiums: Application of any deductible credits Application of any retrospective rating plan adjustments California Insurance Guarantee Association (CIGA) assessments California Workers Compensation Revolving Fund assessments California Workers Compensation fraud surcharges Uninsured Employers Trust Fund Assessment Subsequent Injuries Benefits Trust Fund Assessment Occupational Safety & Health Fund assessments Labor Enforcement & Compliance Fund assessments Any charge for terrorism coverage pursuant to the Terrorism Risk Insurance Act of 2002 as amended by the Terrorism Risk Insurance Extension Act of 2005, or the Terrorism Risk Insurance Program Reauthorization Act of 2007 and 2015. (d) Earned Premium (line 1 on Page 1, Section I Expense Exhibit of this Call) must be identical to the earned premium reported on Part b, Column (1) Total of Section III, Calendar Year Exhibit of the Call for Direct California Workers Compensation Experience, Fourth Quarter of Calendar Year 20xx (CA-QT-4Qxx). (Please refer to the definition of Final Premium in Part 4, Section II of the California Workers Compensation Uniform Statistical Reporting Plan 1995 (USRP), available on the WCIRB website at http://www.wcirb.com/document/123, for a more detailed definition of premium to be reported to the WCIRB.) (e) Earned but not billed or booked (EBUB) premium must be included in Earned Premium. (f) Incurred Losses (line 2 on Page 1, Section I Expense Exhibit of this Call) must be identical to the incurred losses reported on Column (6), Line (e), YTD Change, in Section II, Accident Year Exhibit of CA-QT-4Qxx. The costs of medical cost containment programs (MCCP) 1 Workers Compensation Insurance Rating Bureau of California. All rights reserved.

Instructions Call for Direct California Workers' Compensation Annual Call for Direct California Workers Compensation Expense Information for Calendar Year 20xx (CA-EX-20xx) incurred during calendar year 20xx on claims covered by policies incepting prior to July 1, 2010 only is to be included, except for those related to independent bill review (IBR) and independent medical review (IMR), i.e., IBR and IMR costs are not to be included on this line. (g) Premium and losses from large deductible rating programs should first be adjusted to a full coverage basis prior to making premium or loss apportionments of national workers compensation expense data to California. (h) In making apportionments of various countrywide workers compensation expenses to California, countrywide expense amounts should be gross of any reimbursements of assigned risk servicing insurer fees. (i) Allocated loss adjustment expenses incurred must be reported in accordance with the definition of Allocated Loss Adjustment Expenses in Part 4, Section II of the USRP, available on the WCIRB website at http://www.wcirb.com/document/123. For claims arising from policies incepting on or after July 1, 2010, the costs of all MCCP (including IBR and IMR) paid is included in incurred allocated loss adjustment expenses. For claims arising from policies incepting prior to July 1, 2010, only IBR and IMR costs (and no other MCCP) paid is included in incurred allocated loss adjustment expenses. (j) For companies writing workers compensation only in California, unallocated loss adjustment expense incurred or paid (lines 4a and 4b on Page 1, Section I Expense Exhibit of this Call) must be reported in accordance with the definition of Unallocated Loss Adjustment Expenses in Part 4, Section II of the USRP, available on the WCIRB website at http://www.wcirb.com/document/123. For companies writing workers compensation in other states as well as in California, the countrywide workers compensation unallocated loss adjustment expense determined as specified in the above paragraph may be apportioned to California based upon the ratio of California workers compensation Paid Losses to the countrywide workers compensation Paid Losses determined in a manner consistent with those reported for California an appropriate apportionment methodology. (k) Commission and brokerage expenses must be reported on a basis consistent with line 16, column 11, of the 20xx Annual Statement California Exhibit of Premiums and Losses (Statutory Page 14 Data), subject to the exceptions outlined in paragraphs (a) and (b) above. (l) Taxes, licenses and fee expenses must be reported on a basis consistent with line 16, column 12, of the 20xx Annual Statement California Exhibit of Premiums and Losses (Statutory Page 14 Data), subject to the exceptions outlined in paragraphs (a) and (b) above. (m) The individual expense components of other acquisition expenses and general expenses (operating expense classifications 3 to 18 and 24 in Part I of the 20xx Insurance Expense Exhibit, or IEE) must be reported on a basis consistent with the amounts reported in the IEE, subject to the exceptions outlined in paragraphs (a) and (b) above. If an individual expense component of other acquisition expense or general expense is directly available for California workers compensation, it must be reported. Otherwise, the 2 Workers Compensation Insurance Rating Bureau of California. All rights reserved.

Instructions Call for Direct California Workers' Compensation Annual Call for Direct California Workers Compensation Expense Information for Calendar Year 20xx (CA-EX-20xx) following procedure to apportion countrywide expenses to California workers compensation must be followed: i. The countrywide workers compensation other acquisition expenses incurred and general expenses incurred shown in line 16, column 27, and line 16, column 29, of Part III of the 20xx IEE, subject to the exceptions outlined in paragraphs (a) and (b) above, may be apportioned to California workers compensation based on the ratio of California workers compensation Earned Premium (line 1 on page 1 of this Call) to countrywide earned workers compensation premium computed on the same basis (i.e., subject to the exceptions outlined in paragraphs (a) and (b) above). ii. The amount to be reported for a particular other acquisition expense component may be determined as the product of the total other acquisition expenses apportioned to California in the paragraph above and the ratio of the amount reported for the particular expense component in column 2 of Part I of the 20xx IEE to the sum of line 19, column 2, and line 24, column 2, of Part I of the 20xx IEE. [For example, if $1 million of countrywide workers compensation other acquisition expenses were apportioned to California in accordance with the instruction in (i) above and the amount of countrywide advertising expenses assigned to other acquisition expenses (IEE Part I, line 4, column 2) was 10% of the total of all other acquisition expense components (sum of IEE, Part I, column 2, lines 19 and 24), $100,000 would be reported in the Call for the advertising component of other acquisition expenses in this Call (line 7b on page 1 of this Call).] iii. The amount to be reported for a particular expense component of general expense may be determined as the product of the total general expenses apportioned to California as specified above and the ratio of the particular expense item in column 3 of Part I of the 20xx IEE to the sum of line 19, column 3, and line 24, column 3, of Part I of the 20xx IEE. For each expense component, indicate whether the amount is an actual California expense or derived based on the apportionment method described above by marking the appropriate letter in the column labeled Actual California (C) or Apportionment (A). (n) Civil or criminal fines, penalties or punitive damages incurred must include all penalties, fines or punitive damages imposed by any court of law in civil or criminal actions pertaining to or arising from California workers compensation business. (These amounts are also to be included in other Call items as appropriate.) (o) Additional penalties or fines incurred (other than civil or criminal fines, penalties or punitive damages) must include those imposed by the WCIRB, the Department of Insurance, the Department of Industrial Relations, or any state agency pertaining to or arising from California workers compensation business. (These amounts are also to be included in other Call items as appropriate.) Automatic increases to late indemnity payments made pursuant to Labor Code Section 4650 must be included in this category. 3 Workers Compensation Insurance Rating Bureau of California. All rights reserved.

Instructions Call for Direct California Workers' Compensation Annual Call for Direct California Workers Compensation Expense Information for Calendar Year 20xx (CA-EX-20xx) (p) Attorney expenses: i. Applicant attorney expenses - includes all amounts for applicant attorney and other legal fees specified in an award, including any applicant attorney fees resulting from vocational rehabilitation maintenance allowance or penalty awards and fees for depositions on behalf of the claimant. ii. Defense attorney expenses - amounts paid in connection with the defense of a controverted claim, including: 1. Amounts paid for legal representation, whether in-house or outside counsel. 2. Amounts paid for in-house or outside non-attorney hearing representatives. 3. The cost of in-house legal department support staff and other legal department expenses related to the defense of controverted claims. (These expenses contemplate in-house legal department salary-related and overhead expenses that are similar to those contemplated in legal fees paid to outside defense attorneys and applicant attorneys.) Expenses associated with claims which are later determined to be non-compensable must be included with the expenses of other compensable claims. The cost of outside copying services, investigation, special insurance units and normal claims department functions must be excluded. The expense associated with employers liability claims must also be excluded. (q) For countrywide amounts in Question 17a, 17b and 17c, IEE Incurred ULAE must be reported on a basis consistent with line 16, column 11, of Part III of the 20xx IEE. IEE ULAE Reserves must be reported on a basis consistent with line 16, column 17, of Part III of the 20xx IEE. The amount for Paid ULAE may be determined as the 20xx IEE Incurred ULAE amount minus the change in IEE ULAE Reserves from the prior year; column 11 of Part III of the 20xx IEE minus (column 17 of Part III of the 20xx IEE minus column 17 of Part III of the 20xx-1 IEE). (r) For countrywide amounts in Question 17d, 17e and 17f, IEE Incurred Losses must be reported on a basis consistent with line 16, column 7, of Part III of the 20xx IEE. IEE Loss Reserves must be reported on a basis consistent with line 16, column 13, of Part III of the 20xx IEE. The amount for Paid Losses may be determined as the 20xx IEE Incurred Loss amount minus the change in IEE Loss Reserves from the prior year; column 7 of Part III of the 20xx IEE minus (column 13 of Part III of the 20xx IEE minus column 13 of Part III of the 20xx-1 IEE). (s) For countrywide paid loss below deductibles in Question 17g, it is the difference between the countrywide first-dollar (gross-of-deductible) paid loss amount and the countrywide net-ofdeductible paid loss amount that is reported in Question 17f. 4 Workers Compensation Insurance Rating Bureau of California. All rights reserved.

Instructions Call for Direct California Workers' Compensation Annual Call for Direct California Workers Compensation Expense Information for Calendar Year 20xx (CA-EX-20xx) (t) For countrywide open indemnity claim counts in Question 17h, the open indemnity claim counts must be reported on a basis consistent with the Open Indemnity Claim Counts reported in the Fourth Quarter Calendar Year Call (Column (11), Line (a), As of 12/31/20xx, in Section II, Accident Year Exhibit of CA-QT-4Qxx), which pertains only to accident years 1989 and forward. The open indemnity claim counts reported on Question 17h should be for countrywide workers compensation and as of December 31 of the calendar year prior to the year requested for other data in this Call. For example, Countrywide Open Indemnity Claim Counts in Question 17h of the Calendar Year 2017 Expense Call (CA-EX-2017) should be the countrywide version of the total line of column 11 of the Accident Year Exhibit of CA-QT- 4Q16, which is as of December 31, 2016. For guidance on the terms open claims and indemnity claims, please refer to the Quarterly Call instructions and/or the Claim Count Guidelines. (t)(u) For the countrywide amount of total calendar year paid losses in Question 19b, provide either the countrywide paid loss dollars net of deductibles of the TPA-handled claims from deductible policies for which the associated claims-handling costs or fees of the TPA are not included in the ULAE reported on Part III, line 16 of the IEE or an estimate of this loss as a percentage of total countrywide paid losses net of deductibles of all workers compensation policies. (u)(v) For the countrywide amount of total calendar year paid losses in Question 20b, provide either the loss dollars of the claims from non-deductible policies that are handled by TPAs for which the associated claims-handling costs or fees of the TPA are not included in the ULAE reported on Part III, line 16 of the IEE or an estimate of this loss amount as a percentage of total countrywide paid losses net of deductibles of all workers compensation policies. The following example illustrates the calculations for Questions 19 and 20 Suppose the following values or estimates of them are available: (1) Total IEE paid losses (net of deductible) (1) = (2a) + (3a) $1,000,000 (2a) Countrywide paid losses from all deductible policies $800,000 (2b) Countrywide net paid losses of the TPA-handled claims from deductible policies for which the associated claims-handling costs or fees of the TPA are not included in the ULAE reported on Part III, line 16 of the IEE $100,000 (3a) Countrywide paid losses from all non-deductible policies $200,000 (3b) Countrywide net paid losses of the TPA-handled claims from non-deductible policies for which the associated claims-handling costs or fees of the TPA are not included in the ULAE reported on Part III, line 16 of the IEE $28,000 The value for Question 19b: (4a) if reported as a dollar amount (4a) = (2b) (4b) if reported as a percentage (4b) = (2b) / (1) The value for Question 20b: (5a) if reported as a dollar amount (5a) = (3b) (5b) if reported as a percentage (5b) = (3b) / (1) 5 Workers Compensation Insurance Rating Bureau of California. All rights reserved. $100,000 10% $28,000 3%

Instructions Call for Direct California Workers' Compensation Annual Call for Direct California Workers Compensation Expense Information for Calendar Year 20xx (CA-EX-20xx) Section II: Reconciliation Report Exhibit (Pages 5-6): (v)(w) The purpose of the Reconciliation Report Exhibit is to reconcile the data reported on Section I, Expense Exhibit, of this Call with that reported on the insurers Annual Statement Exhibit of Premiums and Losses (Statutory Page 14 Data). (w)(x) Direct Earned Premium and Direct Incurred Losses reported on page 5, line 1 of this Call must be equal to the Earned Premium and Incurred Losses reported on lines 1 and 2 of page 1, Section I, Expense Call Exhibit, of this Call. (x)(y) The amounts of deductible credits and loss deductible amounts must be reported on page 5, line 2 of this Call. The deductible credit and loss deductible amounts on line 2 are then subtracted from the amounts in line 1 to arrive at net (after the application) of deductible credit and loss deductible amounts to be entered on page 5, line 3. (y)(z) When the sum of items that are specifically excluded from the premium and loss data reported on page 1, lines 1 and 2 of this Call but included in the Annual Statement Exhibit of Premiums and Losses (Statutory Page 14 Data) as shown on page 5, line 11 of this Call are added to the reported premium and loss amounts as shown on page 5, line 1 of this Call, the result is compared to the corresponding figures on the Exhibit of Premiums and Losses (Statutory Page 14 Data) of the Annual Statement as shown on page 5, line 12. Differences are shown on page 5, line 13 of this Call. Differences that are larger than $1,000, if any, need to be explained in the Reconcilable Items area provided on the bottom of page 5 of this Call. (z)(aa) The experience reported on page 5 of this Call must be for the same company or companies as the company or companies whose experience is reported in Section I Expense Call Exhibit of this Call. On page 6 of Section II Reconciliation Report Exhibit, each company whose data is included on page 5 must be listed individually with its California Direct Written Premium, California Direct Earned Premium, California Dividends Paid, and California Direct Incurred Losses from the Exhibit of Premiums and Losses (Statutory Page 14 Data) of the individual company s Annual Statement. Please note that the sum of the California Direct Earned Premiums and the sum of the California Direct Incurred Losses reported on page 6 must equal the corresponding amounts reported on page 5 of this Call. Applicable to both Section I & Section II: (aa)(bb) All data reported on this call must be on a calendar year basis, which means that premiums, losses and expenses from all transactions that occurred during year 20xx must be included, regardless of the effective year of policies or year of accident of claims involved (with the exception of Section I, Question 17h, which should be based only on accident years 1989 and forward). (bb)(cc) Insurers who are members of an affiliated group are encouraged to file on a combined group ( consolidated ) basis. However, all members of the group must be individually listed. All data calls for the same evaluation period submitted to the WCIRB must be made under the same grouping structure. Any changes to the reporting group must be communicated to and approved by WCIRB prior to reporting data under the new grouping. 6 Workers Compensation Insurance Rating Bureau of California. All rights reserved.

Instructions Call for Direct California Workers' Compensation Annual Call for Direct California Workers Compensation Expense Information for Calendar Year 20xx (CA-EX-20xx) (cc)(dd) Use of the escad web-based application to submit data is highly encouraged. Insurers with access to the escad application should submit this data call online via escad. NoneSCAD submissions using only WCIRB forms and/or templates are permitted for insurers who do not yet have access to escad, subject to a $250 processing fee for each submission of this data call. For all non-escad submissions: (i) reported amounts must be rounded to whole dollars; (ii) Negative amounts must be displayed enclosed within parentheses; (iii) the vertical totals must equal their corresponding sum of rounded details shown on the forms, not the rounded sum of actual details. (dd)(ee) All negative amounts must be explained. (ee)(ff) The aforementioned data call is subject to the SCAD program (program for Submission of California Aggregate Data). Refer to the SCAD Program effective July 1, 2010 for details. A comprehensive listing of the edits used to check the accuracy of submitted call data is available by clicking on the Help link in escad. 7 Workers Compensation Insurance Rating Bureau of California. All rights reserved.