Assigned Risk Rates and Rating Values for the Michigan Workers' Compensation Placement Facility (2018)

Assigned Risk Rates and Rating Values for the Michigan Workers' Compensation Placement Facility (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

MICHIGAN WORKERS COMPENSATION PLACEMENT FACILITY 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 October 9, 2017 CIRCULAR LETTER # 275 TO ALL PARTICIPANTS IN THE MICHIGAN WORKERS COMPENSATION PLACEMENT FACILITY Regarding Assigned Risk Rates and Rating Values for the Michigan Workers Compensation Placement Facility - Effective 1/1/2018 Applicable to New and Renewal Policies Only Dear Member: Included in this circular letter are rating values which will be applicable to new and renewal Assigned Risk policies having effective dates on or after January 1, 2018. There is no application to outstanding policies. Please share this rate information with agents representing your firm. All information is available on our website at: https://caom.com/circulars-rating-values-annual- Reports/category/rating-values. The 1/1/2018 rating values represent an average decrease of 7.5% from those effective 1/1/2017. The rate changes are determined by using weighted averages of 80% statewide experience and 20% Facility experience. The components of this change are as follows: Experience, Trend and Benefits -7.8% Servicing Carrier & Administrative Expense +0.6% Loss Based Expense -0.3% Overall -7.5% By industry group, the average pure premium level changes are: Manufacturing -9.4% Contracting -8.3% Office & Clerical -7.4% Goods & Services -7.5% Miscellaneous -4.2% Within each industry group, the changes will vary from the average classification depending upon the volume and character of the particular classification experience.

MWCPF CIRCULAR LETTER #275 Page 2 Swing limits (+/- 25%) have been applied which operate to hold individual class rates to the following maximum movement from the January 1, 2018 rates. Manufacturing Contracting Office & Clerical Goods & Services Miscellaneous from 15.6% above to 34.4% below from 16.7% above to 33.3% below from 17.6% above to 32.4% below from 17.5% above to 32.5% below from 20.8% above to 29.2% below The classifications which have been limited are: List of Classifications Limited by Upper Swing 3241 4923 Miscellaneous Values List of Classifications Limited by Lower Swing 0141 1320 4240 1. United States Longshoremen s and Harbor Workers Compensation Coverage Percentage Due to the benefit provisions of federal and state laws, the United States Longshoremen s and Harbor Workers Compensation coverage percentage applicable only in connection with Rule XI - D-3 United States Longshoremen s and Harbor Workers Act of the Basic Manual for Michigan Workers Compensation Placement Facility is 68%, applicable to new and renewal business. As a multiplier, the percentage increase is 1.68 (rate multiplied by 1.68). 2. Retrospective Rating Plan Tax Multiplier Due to the change in the Miscellaneous Tax and in the Secondary Injury Fund, the Silicosis and Dust Disease Fund, and the Occupational Safety Fund Assessment, the tax multipliers used in connection with retrospective ratings are: A. Industrial Classes 1.024 B. Federal (F) Classes or Non-F classes where rate is increased by the USL&HW Act percentage 1.064 These factors are applicable to new and renewal policies.

MWCPF CIRCULAR LETTER #275 Page 3 3. Basis of Premium Basis of Premium applicable in accordance with the footnote instructions for Code 7220 Taxicab Company - Drivers is $30,700. 4. Remuneration for Executive Officers The weekly payroll amount for corporate officers and active members of limited liability companies is $483 for the minimum weekly payroll assumption and $1,900 is the maximum. 5. Minimum Premiums The Maximum Minimum Premium is $750. The Minimum Premium multiplier is 125. Example: Manual Rate = $4.40 x 125 = $550 + $200 = $750 (Manual Rate) x (Multiplier) + (Expense Constant) = Minimum Premium The revision of rates and rating values was approved for use in the Facility and is applicable to all Facility policies with new or renewal dates of January 1, 2018 or later. Respectfully, Facility Team

MICHIGAN WORKERS COMPENSATION AND EMPLOYERS LIABILITY Effective January 1, 2018 APPLICABLE TO ASSIGNED RISK POLICIES ONLY Page S1 CLASS MIN D CLASS MIN D CLASS MIN D CODE RATE PREM ELR RATIO CODE RATE PREM ELR RATIO CODE RATE PREM ELR RATIO 0005 3.98 698 1.35 0.45 2797 2.58 523 0.83 0.46 3635 2.38 498 0.76 0.45 0011 3.40 625 1.12 0.42 2802 4.14 718 1.31 0.42 3638 1.31 364 0.44 0.49 0034 2.49 511 0.84 0.46 2812 3.39 624 1.09 0.45 3643 2.54 518 0.82 0.45 0035 2.10 463 0.72 0.49 2841 3.71 664 1.22 0.48 3648 1.43 379 0.48 0.49 0042 5.50 750 1.81 0.42 2881 2.30 488 0.78 0.53 3681 1.62 403 0.53 0.48 0106 8.82 750 2.70 0.33 2915 3.34 618 1.05 0.42 3685 1.20 350 0.40 0.48 0128 2.93 566 0.99 0.45 3004 1.16 345 0.35 0.37 3724 4.00 700 1.18 0.33 0129 2.94 568 0.99 0.46 3018 4.45 750 1.37 0.37 3726 4.54 750 1.24 0.29 0130 2.66 533 0.86 0.37 3022 3.38 623 1.11 0.48 3807 2.16 470 0.71 0.48 0141 2.06 458 0.73 0.49 3027 3.26 608 1.00 0.37 3808 2.62 528 0.83 0.42 0908P 151.00 351 51.10 0.45 3028 3.11 589 1.00 0.45 3821 9.88 750 3.26 0.42 0909P 313.00 513 107.95 0.48 3030 5.14 750 1.58 0.37 3824 3.26 608 1.03 0.42 0912P 394.00 594 135.21 0.49 3040 5.67 750 1.74 0.37 3827 1.31 364 0.42 0.41 0913P 440.00 640 148.64 0.45 3064 4.12 715 1.33 0.45 4000 5.09 750 1.54 0.33 1164 2.47 509 0.69 0.29 3066 5.53 750 1.78 0.46 4024 4.54 750 1.39 0.37 1320 1.57 396 0.48 0.33 3076 2.88 560 0.95 0.49 4034 11.85 750 3.64 0.37 1322 9.25 750 2.72 0.33 3081 3.52 640 1.08 0.37 4036 2.68 535 0.82 0.37 1438 4.42 750 1.29 0.33 3082 5.10 750 1.57 0.37 4130 3.15 594 1.01 0.45 1463 6.93 750 2.01 0.33 3085 3.31 614 1.01 0.37 4131 1.56 395 0.52 0.49 1624 3.37 621 1.01 0.33 3095 2.07 459 0.67 0.45 4150 0.83 304 0.28 0.53 1701 1.87 434 0.57 0.37 3096 2.58 523 0.83 0.46 4207 1.44 380 0.45 0.36 1748 3.26 608 1.00 0.37 3110 5.78 750 1.88 0.45 4239 2.15 469 0.66 0.37 1925 5.93 750 1.88 0.42 3111 3.52 640 1.14 0.46 4240 2.79 549 1.03 0.48 2003 3.23 604 1.04 0.45 3113 2.50 513 0.81 0.45 4243 2.18 473 0.71 0.45 2014 7.22 750 2.21 0.37 3114 3.59 649 1.16 0.45 4244 2.80 550 0.91 0.46 2016 1.98 448 0.65 0.48 3116 3.38 623 1.09 0.46 4250 3.06 583 0.99 0.45 2021 2.39 499 0.75 0.42 3131 1.72 415 0.56 0.46 4251 2.23 479 0.72 0.45 2041 2.58 523 0.85 0.48 3132 1.86 433 0.60 0.45 4253 2.34 493 0.76 0.45 2065 1.82 428 0.59 0.45 3145 2.15 469 0.69 0.46 4273 2.59 524 0.84 0.45 2070 3.26 608 1.05 0.45 3146 2.72 540 0.88 0.45 4279 3.16 595 1.02 0.46 2081 3.06 583 1.03 0.46 3169 2.60 525 0.84 0.46 4299 1.91 439 0.63 0.48 2095 2.78 548 0.90 0.45 3179 1.23 354 0.41 0.48 4304 5.53 750 1.75 0.42 2105 3.62 653 1.25 0.49 3188 2.40 500 0.79 0.48 4307 1.55 394 0.53 0.53 2110 2.40 500 0.79 0.48 3241 2.95 569 0.95 0.45 4351 0.76 295 0.24 0.46 2111 2.60 525 0.85 0.48 3257 3.00 575 0.97 0.46 4360 1.66 408 0.55 0.48 2121 1.75 419 0.57 0.46 3303 2.00 450 0.66 0.48 4361 1.18 348 0.38 0.48 2131 1.64 405 0.53 0.45 3306 5.98 750 1.94 0.45 4410 3.36 620 1.09 0.46 2143 2.39 499 0.78 0.48 3307 4.02 703 1.30 0.45 4452 2.36 495 0.77 0.46 2157 5.43 750 1.76 0.45 3315 2.62 528 0.86 0.48 4459 2.46 508 0.79 0.46 2380 2.31 489 0.75 0.46 3341 0.79 299 0.24 0.37 4470 1.40 375 0.45 0.45 2501 3.03 579 0.98 0.46 3365 3.94 693 1.23 0.37 4484 2.36 495 0.76 0.46 2503 1.24 355 0.42 0.48 3372 3.75 669 1.18 0.42 4511 0.56 270 0.18 0.42 2576 2.08 460 0.69 0.48 3383 1.31 364 0.43 0.48 4557 1.99 449 0.66 0.48 2585 2.48 510 0.85 0.48 3400 3.22 603 1.01 0.42 4558 1.42 378 0.46 0.46 2586 2.11 464 0.71 0.45 3507 2.26 483 0.73 0.46 4568 1.36 370 0.42 0.37 2587 2.02 453 0.70 0.48 3548 0.91 314 0.29 0.45 4583 3.79 674 1.11 0.33 2623 5.93 750 1.87 0.41 3559 1.75 419 0.57 0.46 4611 0.85 306 0.28 0.48 2660 1.63 404 0.54 0.49 3574 0.83 304 0.27 0.48 4692 0.60 275 0.20 0.48 2683 1.84 430 0.61 0.48 3581 1.21 351 0.40 0.48 4693 0.84 305 0.27 0.45 2688 2.80 550 0.92 0.48 3612 1.91 439 0.60 0.42 4712 1.39 374 0.46 0.45 2702 8.69 750 2.44 0.29 3620 3.08 585 0.95 0.37 4720 2.75 544 0.89 0.45 2709 8.81 750 2.77 0.37 3628 2.60 525 0.82 0.42 4825 0.91 314 0.27 0.37 2731 5.97 750 1.84 0.37 3629 2.22 478 0.73 0.48 4828 1.43 379 0.45 0.42 2759 6.18 750 2.03 0.49 3632 3.48 635 1.10 0.42 4829 0.57 271 0.17 0.33 2790 1.56 395 0.51 0.48 3634 1.51 389 0.50 0.49 4902 2.24 480 0.74 0.49 * Refer to the Footnotes Page for additional information on this class code. 09/2017 Note: D-Ratios reflect a $16,500 split point.

MICHIGAN WORKERS COMPENSATION AND EMPLOYERS LIABILITY Effective January 1, 2018 APPLICABLE TO ASSIGNED RISK POLICIES ONLY Page S2 CLASS MIN D CLASS MIN D CLASS MIN D CODE RATE PREM ELR RATIO CODE RATE PREM ELR RATIO CODE RATE PREM ELR RATIO 4923 1.32 365 0.41 0.45 6836 3.13 591 0.99 0.37 7540 3.64 655 1.03 0.29 5020 7.14 750 2.21 0.36 6843F 9.87 750 3.80 0.29 7580 1.36 370 0.43 0.37 5022 7.85 750 2.31 0.33 6845F 9.28 750 3.55 0.29 7600 5.44 750 1.71 0.37 5038a a a a a 6872F 13.70 750 6.08 0.29 7610 0.72 290 0.22 0.41 5040 13.34 750 3.65 0.29 6874F 18.94 750 7.26 0.29 7704 6.32 750 1.92 0.34 5057 3.54 643 0.97 0.29 7016M 2.14 468 0.59 0.29 7720* 1.94 443 0.61 0.37 5059 27.25 750 7.50 0.29 7024M 2.37 496 0.66 0.29 7904 5.37 750 1.62 0.33 5102 5.80 750 1.71 0.33 7038M 3.56 645 1.02 0.29 7920 0.29 236 0.10 0.47 5146 5.67 750 1.75 0.36 7046M 8.39 750 2.32 0.29 7979 1.51 389 0.51 0.47 5160 2.01 451 0.58 0.33 7047M 3.00 575 0.83 0.29 7980 2.91 564 0.94 0.42 5183 3.55 644 1.10 0.37 7050M 5.00 750 1.43 0.29 8001 1.84 430 0.63 0.49 5188 3.22 603 1.00 0.37 7090M 3.96 695 1.13 0.29 8006 1.85 431 0.63 0.45 5190 2.63 529 0.82 0.37 7098M 9.32 750 2.58 0.29 8008 0.86 308 0.29 0.49 5191 1.05 331 0.35 0.45 7099M 11.77 750 3.26 0.29 8010 1.23 354 0.42 0.48 5192 3.63 654 1.23 0.45 7151M 8.67 750 2.72 0.36 8013 0.29 236 0.10 0.44 5213 6.20 750 1.82 0.33 7152M 12.15 750 3.81 0.36 8015 1.01 326 0.34 0.45 5215 8.67 750 2.76 0.41 7153M 9.63 750 3.02 0.36 8017 1.23 354 0.42 0.48 5221 5.30 750 1.64 0.37 7202 7.95 750 2.50 0.37 8018 2.63 529 0.91 0.48 5222 9.84 750 2.89 0.33 7206 8.55 750 2.69 0.37 8021 2.74 543 0.92 0.46 5223 6.12 750 1.89 0.37 7208 10.89 750 3.42 0.36 8031 2.14 468 0.72 0.45 5348 6.12 750 1.89 0.37 7210 11.59 750 3.65 0.37 8032 2.21 476 0.76 0.49 5403 8.95 750 2.65 0.33 7212 4.38 748 1.46 0.45 8033 1.97 446 0.66 0.46 5437 6.49 750 2.01 0.37 7213 9.85 750 2.95 0.33 8039 1.42 378 0.49 0.48 5445 5.81 750 1.70 0.33 7214 7.86 750 2.47 0.37 8044 2.97 571 0.97 0.42 5462 4.93 750 1.53 0.37 7215 9.89 750 3.12 0.37 8045 0.68 285 0.23 0.47 5476 7.05 750 2.08 0.33 7216 9.82 750 2.97 0.33 8046 1.88 435 0.64 0.46 5479 6.59 750 2.10 0.41 7218 17.87 750 5.64 0.37 8047 0.88 310 0.30 0.48 5480 6.05 750 1.77 0.33 7219 6.05 750 1.81 0.33 8050 1.07 334 0.37 0.47 5506 5.66 750 1.55 0.29 7220 3.42 628 1.08 0.37 8058 2.42 503 0.81 0.46 5507 3.93 691 1.16 0.33 7230 6.17 750 2.01 0.42 8059 3.00 575 1.04 0.48 5509 5.85 750 1.62 0.29 7231 8.18 750 2.65 0.41 8102 2.25 481 0.77 0.48 5538 4.78 750 1.48 0.37 7309F 14.86 750 5.73 0.29 8106 4.68 750 1.51 0.37 5550 4.07 709 1.27 0.37 7313F 3.36 620 1.29 0.29 8107 2.25 481 0.72 0.37 5551 20.25 750 5.60 0.29 7317F 10.81 750 4.17 0.29 8111 1.83 429 0.62 0.45 5552 15.14 750 4.13 0.29 7333M 7.97 750 2.20 0.29 8116 2.44 505 0.82 0.45 5606 1.48 385 0.44 0.33 7335M 8.86 750 2.45 0.29 8209 2.90 563 0.98 0.46 5610 4.74 750 1.56 0.45 7337M 11.18 750 3.09 0.29 8215 2.75 544 0.88 0.37 5645 12.82 750 3.81 0.33 7350F 30.29 750 10.89 0.33 8227 5.18 750 1.43 0.29 6204 9.13 750 2.71 0.33 7360 4.33 741 1.37 0.37 8232 4.97 750 1.60 0.37 6216 6.43 750 1.76 0.29 7380 5.15 750 1.67 0.42 8235 4.13 716 1.40 0.45 6217 5.76 750 1.69 0.33 7382 2.85 556 0.95 0.46 8264 5.13 750 1.65 0.37 6229 4.89 750 1.45 0.33 7390 4.14 718 1.40 0.45 8265 7.08 750 2.17 0.33 6235 10.55 750 2.90 0.29 7394M 2.36 495 0.65 0.29 8279 5.68 750 1.75 0.34 6306 6.16 750 1.82 0.33 7395M 2.63 529 0.72 0.29 8291 2.88 560 0.95 0.42 6319 2.89 561 0.85 0.33 7398M 3.31 614 0.92 0.29 8292 4.55 750 1.54 0.46 6325 5.99 750 1.77 0.33 7403 4.86 750 1.54 0.37 8293 17.98 750 5.76 0.37 6400 7.92 750 2.53 0.42 7405 1.23 354 0.39 0.37 8304 4.62 750 1.48 0.37 6504 2.42 503 0.79 0.48 7421 0.67 284 0.21 0.34 8350 4.35 744 1.33 0.33 6702M 5.37 750 1.59 0.33 7422 1.38 373 0.38 0.29 8381 1.30 363 0.43 0.42 6703M 7.54 750 2.24 0.33 7423 2.85 556 0.89 0.36 8387 3.09 586 1.02 0.42 6704M 5.97 750 1.78 0.33 7502 1.72 415 0.54 0.37 8392 2.08 460 0.70 0.45 6801F 3.98 698 1.72 0.37 7515 1.55 394 0.43 0.29 8393 2.29 486 0.77 0.45 6824F 11.85 750 8.41 0.34 7520 2.05 456 0.69 0.45 8395 2.74 543 0.90 0.42 6826F 5.27 750 2.28 0.37 7538 4.85 750 1.34 0.29 8401 0.70 288 0.23 0.41 6834 2.22 478 0.72 0.41 7539 1.00 325 0.30 0.33 8601 0.47 259 0.15 0.41 * Refer to the Footnotes Page for additional information on this class code. 09/2017 Note: D-Ratios reflect a $16,500 split point.

MICHIGAN WORKERS COMPENSATION AND EMPLOYERS LIABILITY Effective January 1, 2018 APPLICABLE TO ASSIGNED RISK POLICIES ONLY Page S3 CLASS MIN D CLASS MIN D CLASS MIN D CODE RATE PREM ELR RATIO CODE RATE PREM ELR RATIO CODE RATE PREM ELR RATIO 8709F 8.30 750 4.69 0.29 8720 1.39 374 0.45 0.37 8726F 4.66 750 1.90 0.36 8734M 0.68 285 0.24 0.47 8737M 0.60 275 0.20 0.47 8738M 0.86 308 0.30 0.48 8742 0.26 233 0.08 0.36 8745 3.73 666 1.23 0.42 8748 0.60 275 0.18 0.42 8755 0.30 238 0.09 0.36 8800 1.49 386 0.49 0.53 8803 0.05 206 0.02 0.34 8805M 0.35 244 0.12 0.47 8810 0.14 218 0.04 0.47 8814M 0.31 239 0.11 0.47 8815M 0.44 255 0.15 0.47 8820 0.13 216 0.04 0.45 8829 2.54 518 0.86 0.45 8831 1.27 359 0.43 0.46 8832 0.32 240 0.09 0.44 8833 1.42 378 0.45 0.46 8835 2.47 509 0.83 0.45 8837 1.70 413 0.58 0.46 8868 0.43 254 0.14 0.50 8869 0.50 263 0.16 0.49 8901 0.13 216 0.04 0.45 9015 3.46 633 1.17 0.46 9040 2.67 534 0.91 0.49 9052 1.69 411 0.58 0.49 9053 2.75 544 0.95 0.48 9058 1.19 349 0.42 0.53 9060 1.84 430 0.63 0.49 9061 1.60 400 0.56 0.53 9063 0.95 319 0.33 0.48 9065 0.93 316 0.32 0.48 9093 1.21 351 0.42 0.49 9101 2.63 529 0.91 0.48 9102 3.67 659 1.22 0.45 9154 1.13 341 0.38 0.45 9156 1.66 408 0.51 0.42 9220 4.05 706 1.34 0.41 9402 5.04 750 1.59 0.37 9403 7.32 750 2.20 0.33 9410 1.30 363 0.45 0.46 9501 2.34 493 0.74 0.42 9519 5.68 750 1.81 0.37 9521 3.13 591 1.00 0.37 9522 2.35 494 0.76 0.45 9529a a a a a 9530 2.94 568 0.80 0.29 9558 6.56 750 2.03 0.36 9559 2.78 548 0.81 0.33 9586 0.38 248 0.13 0.53 9620 0.96 320 0.32 0.42 * Refer to the Footnotes Page for additional information on this class code. 09/2017 Note: D-Ratios reflect a $16,500 split point.

MICHIGAN WORKERS COMPENSATION AND EMPLOYERS LIABILITY Effective January 1, 2018 Page 4 APPLICABLE TO ASSIGNED RISK POLICIES ONLY FOOTNOTES a F M See instructions for rating in classification section under code description. The rate provides for coverage under the United States Longshore and Harbor Workers Compensation Act and its extensions. The rate also contains a provision for the USL & HW assessment. The rate 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 P Classification is computed on a per capita basis. * Class codes with special footnotes: 5038 Refer to "Painting: Metal Structures or Bridges" on Part Two-Classifications 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. 9529 Refer to "Scaffolds or Sidewalk Bridges-Installation" on Part Two-Classifications

MICHIGAN WORKERS COMPENSATION AND EMPLOYERS LIABILITY Effective January 1, 2018 Page 5 APPLICABLE TO ASSIGNED RISK POLICIES ONLY MISCELLANEOUS VALUES Basis of premium applicable in accordance with the footnote instructions for Code 7220 -- "Taxicab Co. - Drivers": $30,700.00 Expected Loss Ratio - for use in return of rating plan deposits 0.684 Expense Constant applicable in accordance with Basic Manual Rule VI-D-2 $200.00 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 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. The rates on Exhibit III do not include a provision for this exposure. Effective January 1, 2015 an endorsement entitled Terrorism Risk Insurance Program Reauthorization Act Disclosure Endorsement (WC 21 04 02 B) must be attached to all Michigan residual market policies; and, as of this date a surcharge of 1 cent per 100 dollars of payroll will be assessed on all new and renewal policies in the Michigan pool. (See Michigan WC Placement Facility Circular Number 261 found on the CAOM/Facility web site www.caom.com.) 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). NOTE: Basic Manual refers to the Basic Manual for Michigan Workers' Compensation Placement Facility

MICHIGAN EXPERIENCE RATING PLAN MANUAL PART FIVE Page 7 Effective January 1, 2018 TABLE OF WEIGHTING VALUES 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)]

MICHIGAN EXPERIENCE RATING PLAN MANUAL EXHIBIT III PART FIVE Effective January 1, 2018 TABLE OF BALLAST VALUES APPLICABLE TO ALL POLICIES Expected Ballast Expected Ballast Expected Ballast Losses Values Losses Values Losses Values Page 8 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)]

MICHIGAN WORKERS COMPENSATION AND EMPLOYERS LIABILITY Effective January 1, 2018 Page 6 APPLICABLE TO ASSIGNED RISK POLICIES ONLY 1. Table of Rating Values Applicable Table One Year XXIII B-Michigan 2. Tax Multipliers a. State (non-f Classes) 1.024 b. Federal Classes, or non-f classes 1.064 where rate is increased by the USL&HW Act Percentage