Data Collection Agency Workers Compensation Insurances Statewide Average Pure Premium Michigan (2016) Table of Contents 1. Circular Letter 2. Class Code Rating Values 3. Miscellaneous Values 4. Footnotes 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 8, 2015 CIRCULAR LETTER #281 TO ALL MEMBERS RE: DATA COLLECTION AGENCY WORKERS COMPENSATION INSURANCE STATEWIDE AVERAGE PURE PREMIUM MICHIGAN EFFECTIVE JANUARY 1, 2016 - 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 1/1/2016 pure premiums represent an average decrease of 6.9% from the pure premiums effective 1/1/2015. The components of this change are as follows: Experience and Benefits Loss Based Expense Overall 8.2% decrease 1.4% increase 6.9% decrease By industry group, the average pure premium level changes are: Manufacturing Contracting Office and Clerical Goods and Services Miscellaneous 8.3% decrease 8.9% decrease 7.9% decrease 6.5% decrease 3.0% decrease 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 #281 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 (2013 & 2012). 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 2014, 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, http://www.caom.com/forms/mods/ratingvaluesform.pdf. Presently, we are planning on delaying the January modification promulgation until October 19 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. Very truly yours, Jon Heikkinen
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 2.15 1.24 0.44 2797 1.83 1.05 0.44 3635 1.91 1.08 0.43 4923 1.74 0.98 0.43 0011 2.25 1.26 0.41 2802 3.12 1.74 0.40 3638 0.99 0.58 0.47 5020 5.61 3.01 0.37 0034 1.94 1.11 0.44 2812 2.22 1.26 0.44 3643 1.79 1.01 0.43 5022 5.75 2.86 0.33 0035 1.18 0.69 0.47 2841 2.31 1.36 0.47 3648 0.79 0.46 0.47 5038a a a a 0042 4.28 2.38 0.40 2881 1.90 1.14 0.50 3681 1.27 0.73 0.47 5040 7.56 3.68 0.29 0106 7.05 3.58 0.33 2915 1.78 0.98 0.40 3685 0.76 0.44 0.47 5057 2.77 1.34 0.29 0128 2.26 1.28 0.44 3004 1.13 0.60 0.36 3724 2.75 1.39 0.33 5059 20.14 9.88 0.29 0129 2.18 1.26 0.44 3018 2.61 1.43 0.37 3726 3.36 1.60 0.29 5102 2.98 1.51 0.33 0130 1.80 1.00 0.37 3022 2.46 1.43 0.47 3807 1.30 0.76 0.47 5146 4.07 2.15 0.37 0141 1.07 0.63 0.47 3027 2.01 1.08 0.37 3808 2.17 1.22 0.41 5160 1.63 0.81 0.33 0908P 119.00 66.88 0.43 3028 2.12 1.21 0.44 3821 6.79 3.83 0.41 5183 2.47 1.30 0.37 0909P 279.00 163.07 0.47 3030 3.29 1.76 0.37 3824 2.52 1.41 0.41 5188 3.17 1.66 0.36 0912P 251.00 148.11 0.47 3040 4.22 2.25 0.37 3827 0.97 0.53 0.40 5190 1.90 1.01 0.37 0913P 288.00 162.24 0.43 3064 2.92 1.67 0.44 4000 3.40 1.73 0.33 5191 0.75 0.43 0.44 1164 2.66 0.92 0.29 3066 2.68 1.69 0.44 4024 3.07 1.62 0.37 5192 2.13 1.21 0.44 1320 0.91 0.47 0.33 3076 1.94 1.14 0.47 4034 8.17 4.37 0.37 5213 6.46 3.22 0.33 1322 6.72 3.35 0.33 3081 3.14 1.69 0.37 4036 1.59 0.85 0.37 5215 5.87 3.22 0.40 1438 3.36 1.70 0.33 3082 4.30 2.34 0.37 4130 2.53 1.43 0.43 5221 4.61 2.41 0.36 1463 4.99 2.52 0.33 3085 3.42 1.83 0.37 4131 0.96 0.56 0.47 5222 8.32 4.14 0.33 1624 2.38 1.19 0.33 3095 1.41 0.81 0.44 4150 0.72 0.43 0.50 5223 4.40 2.33 0.37 1701 1.43 0.77 0.37 3096 1.89 1.08 0.44 4207 1.02 0.54 0.37 5348 4.47 2.34 0.37 1748 2.38 1.29 0.37 3110 4.93 2.79 0.44 4239 1.73 0.92 0.37 5403 5.70 2.89 0.33 1925 3.90 2.20 0.41 3111 2.43 1.39 0.44 4240 1.38 0.80 0.47 5437 4.09 2.17 0.37 2003 2.64 1.50 0.43 3113 1.44 0.83 0.44 4243 1.77 1.00 0.43 5445 3.75 1.88 0.33 2014 5.62 3.03 0.37 3114 3.16 1.80 0.44 4244 1.90 1.09 0.44 5462 3.81 2.02 0.37 2016 1.19 0.70 0.47 3116 2.31 1.32 0.44 4250 2.27 1.30 0.44 5476 4.80 2.43 0.33 2021 2.27 1.26 0.40 3131 1.32 0.75 0.44 4251 1.59 0.90 0.43 5479 4.53 2.49 0.40 2041 1.69 0.98 0.47 3132 1.29 0.74 0.44 4253 1.87 1.05 0.43 5480 3.34 1.67 0.33 2065 1.67 0.95 0.44 3145 1.63 0.94 0.44 4273 1.68 1.04 0.43 5506 4.86 2.35 0.29 2070 2.84 1.61 0.44 3146 1.67 0.96 0.44 4279 1.72 0.98 0.44 5507 2.36 1.19 0.33 2081 1.59 0.90 0.44 3169 1.64 0.95 0.44 4299 1.26 0.73 0.47 5509 3.98 2.01 0.30 2095 1.62 0.93 0.44 3179 0.91 0.53 0.47 4304 3.09 1.72 0.41 5538 3.41 1.81 0.37 2105 2.10 1.23 0.47 3188 1.43 0.83 0.46 4307 1.04 0.63 0.50 5550 2.95 1.57 0.37 2110 2.03 1.18 0.47 3241 2.83 1.62 0.44 4351 0.49 0.28 0.44 5551 14.47 7.08 0.29 2111 1.91 1.11 0.47 3257 2.22 1.28 0.44 4360 1.20 0.69 0.46 5552 13.66 6.32 0.29 2121 1.04 0.60 0.44 3303 1.77 1.03 0.47 4361 0.69 0.41 0.47 5606 0.83 0.43 0.33 2131 1.39 0.79 0.43 3306 3.76 2.09 0.43 4410 2.09 1.19 0.44 5610 3.07 1.74 0.43 2143 1.97 1.14 0.46 3307 2.88 1.64 0.44 4452 1.61 0.93 0.44 5645 8.33 4.23 0.33 2157 4.12 2.32 0.43 3315 2.11 1.22 0.46 4459 1.73 0.99 0.44 6204 8.35 4.27 0.33 2380 1.52 0.87 0.44 3341 0.71 0.38 0.37 4470 1.20 0.68 0.44 6216 4.27 2.04 0.29 2501 1.97 1.12 0.44 3365 3.13 1.67 0.37 4484 1.79 1.03 0.44 6217 4.39 2.22 0.33 2503 0.82 0.48 0.47 3372 2.76 1.52 0.40 4511 0.37 0.21 0.40 6229 4.05 2.07 0.33 2576 1.66 0.96 0.46 3383 0.73 0.43 0.46 4557 1.48 0.86 0.46 6235 10.91 5.39 0.29 2585 1.86 1.09 0.47 3400 2.33 1.31 0.41 4558 1.09 0.62 0.44 6306 3.83 1.95 0.33 2586 1.35 0.76 0.44 3507 1.71 0.97 0.43 4568 0.92 0.49 0.37 6319 2.68 1.33 0.33 2587 1.84 1.06 0.47 3548 0.71 0.40 0.43 4583 3.00 1.51 0.33 6325 3.26 1.63 0.33 2623 6.41 3.51 0.40 3559 1.60 0.91 0.44 4611 0.59 0.35 0.47 6400 7.04 3.88 0.40 2660 1.04 0.61 0.47 3574 0.64 0.38 0.46 4692 0.32 0.19 0.46 6504 1.83 1.07 0.47 2683 1.13 0.66 0.46 3581 1.09 0.64 0.47 4693 0.52 0.31 0.44 6702M 4.55 2.23 0.33 2688 2.11 1.23 0.46 3612 1.49 0.83 0.40 4712 1.21 0.67 0.43 6703M 6.38 3.13 0.33 2702 7.85 3.87 0.29 3620 2.00 1.07 0.37 4720 1.89 1.07 0.44 6704M 5.06 2.48 0.33 2709 10.11 5.34 0.37 3628 1.71 0.95 0.40 4825 0.62 0.34 0.37 6801F 2.78 1.45 0.36 2731 3.54 1.91 0.37 3629 1.68 0.98 0.47 4828 1.28 0.70 0.40 6824F 6.51 3.40 0.33 2759 3.37 1.98 0.47 3632 2.46 1.36 0.40 4829 0.42 0.21 0.33 6826F 4.83 2.58 0.37 2790 1.33 0.77 0.47 3634 1.17 0.68 0.47 4902 1.50 0.88 0.47 6834 1.32 0.74 0.40 9/2015 Note: D-ratios reflect a $16,000 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 1.97 1.06 0.37 7540 2.07 1.03 0.29 8709F 4.58 2.12 0.29 6843F 8.57 4.26 0.29 7580 1.13 0.60 0.37 8720 0.90 0.48 0.37 6845F 8.03 3.89 0.29 7600 3.29 1.76 0.37 8726F 3.25 1.58 0.37 6872F 7.56 3.75 0.29 7610 0.54 0.30 0.40 8734M 0.46 0.26 0.45 6874F 13.86 6.80 0.29 7704 3.66 1.90 0.33 8737M 0.42 0.24 0.46 7016M 2.08 0.94 0.29 7720* 1.36 0.73 0.37 8738M 0.58 0.33 0.46 7024M 2.31 1.04 0.29 7904 4.33 2.21 0.33 8742 0.21 0.11 0.38 7038M 2.29 1.15 0.29 7920 0.19 0.11 0.45 8745 2.11 1.18 0.41 7046M 5.50 2.60 0.29 7979 0.99 0.57 0.46 8748 0.42 0.23 0.40 7047M 2.91 1.31 0.29 7980 1.82 1.00 0.40 8755 0.26 0.14 0.37 7050M 3.22 1.60 0.29 8001 1.37 0.81 0.47 8800 0.89 0.54 0.50 7090M 2.55 1.27 0.29 8006 1.48 0.84 0.44 8803 0.03 0.02 0.34 7098M 6.11 2.89 0.29 8008 0.61 0.36 0.47 8805M 0.23 0.13 0.45 7099M 7.71 3.65 0.29 8010 0.89 0.51 0.47 8810 0.09 0.05 0.45 7151M 5.63 2.95 0.37 8013 0.20 0.12 0.44 8814M 0.20 0.12 0.46 7152M 7.89 4.13 0.37 8015 0.54 0.31 0.44 8815M 0.28 0.16 0.47 7153M 6.25 3.28 0.37 8017 0.81 0.48 0.47 8820 0.08 0.04 0.43 7202 4.41 2.32 0.37 8018 1.91 1.11 0.47 8829 1.94 1.11 0.44 7206 5.52 2.90 0.37 8021 1.95 1.11 0.44 8831 0.85 0.49 0.44 7208 7.58 3.97 0.37 8031 1.53 0.88 0.44 8832 0.19 0.11 0.43 7210 8.20 4.30 0.37 8032 1.52 0.89 0.47 8833 0.95 0.54 0.43 7212 2.65 1.51 0.44 8033 1.27 0.73 0.44 8835 1.77 1.01 0.44 7213 7.74 3.96 0.33 8039 1.02 0.59 0.47 8837 1.41 0.81 0.44 7214 7.12 3.76 0.37 8044 1.76 0.97 0.40 8868 0.28 0.16 0.48 7215 8.15 4.33 0.37 8045 0.36 0.21 0.47 8869 0.26 0.16 0.46 7216 6.68 3.46 0.33 8046 1.21 0.70 0.44 8901 0.10 0.05 0.41 7218 9.01 4.76 0.37 8047 0.64 0.37 0.46 9015 2.42 1.38 0.44 7219 4.04 2.02 0.33 8050 0.95 0.55 0.46 9040 1.96 1.15 0.47 7220 2.17 1.18 0.37 8058 1.65 0.95 0.44 9052 1.39 0.82 0.47 7230 3.43 1.89 0.40 8059 2.33 1.38 0.47 9053 1.90 1.11 0.47 7231 7.74 4.18 0.40 8102 1.26 0.73 0.46 9058 0.87 0.53 0.51 7309F 12.07 6.90 0.29 8106 2.81 1.51 0.37 9060 1.19 0.70 0.47 7313F 4.24 2.10 0.29 8107 1.77 0.94 0.37 9061 0.97 0.59 0.50 7317F 6.74 3.33 0.29 8111 1.21 0.69 0.44 9063 0.74 0.44 0.47 7333M 5.26 2.47 0.29 8116 1.67 0.95 0.43 9065 0.71 0.41 0.47 7335M 5.85 2.75 0.29 8209 2.33 1.34 0.44 9093 1.07 0.63 0.47 7337M 7.38 3.47 0.29 8215 2.18 1.18 0.37 9101 1.62 0.94 0.47 7350F 17.24 8.11 0.33 8227 3.04 1.50 0.29 9102 2.47 1.42 0.44 7360 3.99 2.15 0.37 8232 3.41 1.85 0.37 9154 0.73 0.42 0.44 7380 3.21 1.77 0.40 8235 2.87 1.63 0.44 9156 0.90 0.51 0.41 7382 1.81 1.04 0.44 8264 3.63 1.97 0.37 9220 3.34 1.84 0.40 7390 3.01 1.70 0.43 8265 5.39 2.78 0.33 9402 2.81 1.49 0.37 7394M 2.34 1.06 0.29 8279 3.48 1.82 0.33 9403 4.15 2.09 0.33 7395M 2.60 1.17 0.29 8291 2.07 1.16 0.41 9410 0.90 0.51 0.44 7398M 3.27 1.48 0.29 8292 2.86 1.64 0.44 9501 1.91 1.07 0.40 7403 3.20 1.74 0.37 8293 12.72 6.79 0.37 9519 3.98 2.12 0.37 7405 0.54 0.31 0.37 8304 2.84 1.52 0.37 9521 1.75 0.92 0.37 7421 0.54 0.28 0.33 8350 2.77 1.41 0.33 9522 1.74 1.00 0.44 7422 1.14 0.52 0.29 8381 0.86 0.48 0.40 9529a a a a 7423 1.95 1.01 0.36 8387 2.37 1.32 0.40 9530 2.38 1.12 0.29 7502 1.41 0.76 0.37 8392 1.41 0.80 0.44 9558 6.92 3.63 0.37 7515 0.91 0.45 0.29 8393 1.60 0.89 0.43 9559 2.48 1.27 0.33 7520 1.28 0.73 0.44 8395 2.00 1.11 0.40 9586 0.34 0.21 0.50 7538 3.92 1.92 0.29 8401 0.42 0.23 0.41 9620 0.59 0.33 0.41 7539 0.73 0.37 0.33 8601 0.31 0.17 0.41 * Refer to the Footnotes Page for additional information on this class code. Note: D-ratios reflect a $16,000 split point. 9/2015
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": $28,900.00 Remuneration for Executive Officers Active Members LLC's Minimum $455/wk Athletic Teams and Traveling Carnivals Maximum $1,800/wk Remuneration for Spouse of Sole Proprietors - fixed amount Remuneration for Partners - fixed amount $18,700/yr $18,700/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. 67% (Multiply a Non-'F' classification advisory loss cost by a factor of 1.67. 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 19.8% 15.6% 13.6% 10.1% 6.9% 5.0% 3.8% $750 20.7% 16.2% 14.1% 10.7% 7.4% 5.4% 4.0% $1,000 21.5% 16.9% 14.7% 11.2% 7.8% 5.7% 4.3% $1,500 23.0% 18.2% 15.9% 12.2% 8.7% 6.4% 4.8% $2,000 24.4% 19.4% 17.0% 13.1% 9.5% 7.1% 5.3% $2,500 25.8% 20.6% 18.0% 14.1% 10.4% 7.8% 5.8% NOTE: Basic Manual refers to the Basic Manual for Michigan Workers' Compensation.
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.
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 0-34,693 16,125 1,113,277-1,145,508 129,000 2,241,700-2,273,944 241,875 34,694-59,710 19,350 1,145,509-1,177,740 132,225 2,273,945-2,306,190 245,100 59,711-88,455 22,575 1,177,741-1,209,974 135,450 2,306,191-2,338,435 248,325 88,456-118,779 25,800 1,209,975-1,242,208 138,675 2,338,436-2,370,681 251,550 118,780-149,841 29,025 1,242,209-1,274,444 141,900 2,370,682-2,402,927 254,775 149,842-181,293 32,250 1,274,445-1,306,680 145,125 2,402,928-2,435,173 258,000 181,294-212,972 35,475 1,306,681-1,338,916 148,350 2,435,174-2,467,419 261,225 212,973-244,795 38,700 1,338,917-1,371,154 151,575 2,467,420-2,499,665 264,450 244,796-276,713 41,925 1,371,155-1,403,392 154,800 2,499,666-2,531,912 267,675 276,714-308,699 45,150 1,403,393-1,435,630 158,025 2,531,913-2,564,158 270,900 308,700-340,733 48,375 1,435,631-1,467,869 161,250 2,564,159-2,596,404 274,125 340,734-372,804 51,600 1,467,870-1,500,108 164,475 2,596,405-2,628,651 277,350 372,805-404,903 54,825 1,500,109-1,532,348 167,700 2,628,652-2,660,898 280,575 404,904-437,023 58,050 1,532,349-1,564,588 170,925 2,660,899-2,693,144 283,800 437,024-469,162 61,275 1,564,589-1,596,829 174,150 2,693,145-2,725,391 287,025 469,163-501,314 64,500 1,596,830-1,629,070 177,375 2,725,392-2,757,638 290,250 501,315-533,478 67,725 1,629,071-1,661,312 180,600 2,757,639-2,789,885 293,475 533,479-565,651 70,950 1,661,313-1,693,553 183,825 2,789,886-2,822,132 296,700 565,652-597,833 74,175 1,693,554-1,725,795 187,050 2,822,133-2,854,379 299,925 597,834-630,022 77,400 1,725,796-1,758,038 190,275 2,854,380-2,886,626 303,150 630,023-662,216 80,625 1,758,039-1,790,280 193,500 2,886,627-2,918,874 306,375 662,217-694,416 83,850 1,790,281-1,822,523 196,725 2,918,875-2,951,121 309,600 694,417-726,620 87,075 1,822,524-1,854,766 199,950 2,951,122-2,983,368 312,825 726,621-758,828 90,300 1,854,767-1,887,009 203,175 2,983,369-3,015,616 316,050 758,829-791,040 93,525 1,887,010-1,919,253 206,400 3,015,617-3,047,863 319,275 791,041-823,254 96,750 1,919,254-1,951,497 209,625 3,047,864-3,080,111 322,500 823,255-855,471 99,975 1,951,498-1,983,741 212,850 855,472-887,691 103,200 1,983,742-2,015,985 216,075 887,692-919,912 106,425 2,015,986-2,048,229 219,300 919,913-952,136 109,650 2,048,230-2,080,474 222,525 952,137-984,361 112,875 2,080,475-2,112,718 225,750 984,362-1,016,588 116,100 2,112,719-2,144,963 228,975 1,016,589-1,048,816 119,325 2,144,964-2,177,208 232,200 1,048,817-1,081,045 122,550 2,177,209-2,209,453 235,425 1,081,046-1,113,276 125,775 2,209,454-2,241,699 238,650 For Expected Losses greater than 3,080,111, 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 (6.45) / [Expected Losses + (700) x (6.45)] Cap on Modifications = 1.1 + (0.0004) x [(Expected Losses) / (6.45)]
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 0-1,350 0.04 761,674-803,687 0.44 1,351-5,460 0.05 803,688-848,133 0.45 5,461-9,657 0.06 848,134-895,230 0.46 9,658-13,945 0.07 895,231-945,222 0.47 13,946-18,327 0.08 945,223-998,385 0.48 18,328-30,654 0.09 998,386-1,055,032 0.49 30,655-45,630 0.10 1,055,033-1,115,516 0.50 45,631-58,952 0.11 1,115,517-1,180,242 0.51 58,953-71,922 0.12 1,180,243-1,249,674 0.52 71,923-84,894 0.13 1,249,675-1,324,342 0.53 84,895-98,026 0.14 1,324,343-1,404,865 0.54 98,027-111,406 0.15 1,404,866-1,491,959 0.55 111,407-125,096 0.16 1,491,960-1,586,463 0.56 125,097-139,140 0.17 1,586,464-1,689,365 0.57 139,141-153,577 0.18 1,689,366-1,801,837 0.58 153,578-168,440 0.19 1,801,838-1,925,280 0.59 168,441-183,762 0.20 1,925,281-2,061,381 0.60 183,763-199,575 0.21 2,061,382-2,212,194 0.61 199,576-215,909 0.22 2,212,195-2,380,240 0.62 215,910-232,798 0.23 2,380,241-2,568,654 0.63 232,799-250,275 0.24 2,568,655-2,781,377 0.64 250,276-268,375 0.25 2,781,378-3,023,438 0.65 268,376-287,138 0.26 3,023,439-3,301,358 0.66 287,139-306,601 0.27 3,301,359-3,623,743 0.67 306,602-326,809 0.28 3,623,744-4,002,193 0.68 326,810-347,806 0.29 4,002,194-4,452,726 0.69 347,807-369,642 0.30 4,452,727-4,998,105 0.70 369,643-392,370 0.31 4,998,106-5,671,805 0.71 392,371-416,047 0.32 5,671,806-6,525,156 0.72 416,048-440,735 0.33 6,525,157-7,641,073 0.73 440,736-466,501 0.34 7,641,074-9,162,774 0.74 466,502-493,420 0.35 9,162,775-11,360,783 0.75 493,421-521,571 0.36 11,360,784-14,814,790 0.76 521,572-551,041 0.37 14,814,791-21,031,996 0.77 551,042-581,927 0.38 21,031,997-35,538,797 0.78 581,928-614,333 0.39 35,538,798-108,072,769 0.79 614,334-648,376 0.40 108,072,770 AND OVER 0.80 648,377-684,184 0.41 684,185-721,897 0.42 721,898-761,673 0.43 (a) State Per Claim Accident Limitation.................................................... $161,500 (b) State Multiple Claim Accident Limitation................................................. $323,000 (c) USL&HW Per Claim Accident Limitation................................................. $469,500 (d) USL&HW Multiple Claim Accident Limitation............................................. $939,000 (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) / (6.45)]
RETROSPECTIVE RATING PLAN MANUAL Michigan STATE SPECIAL RATING VALUES RR 1 Original Printing 1. Hazard Group Differentials* A B C D E F G 1.88 1.49 1.38 1.16 1.00 0.84 0.73 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 0.548 0.593 0.613 0.634 0.655 0.687 0.709 $15,000 0.495 0.546 0.568 0.591 0.615 0.651 0.679 $20,000 0.455 0.509 0.532 0.557 0.583 0.622 0.654 $25,000 0.423 0.478 0.503 0.529 0.557 0.597 0.633 $30,000 0.396 0.453 0.478 0.505 0.534 0.576 0.614 $35,000 0.372 0.430 0.456 0.483 0.514 0.558 0.597 $40,000 0.351 0.410 0.436 0.464 0.496 0.541 0.582 $50,000 0.316 0.375 0.402 0.431 0.465 0.511 0.556 $75,000 0.251 0.309 0.337 0.367 0.403 0.453 0.502 $100,000 0.207 0.261 0.289 0.319 0.357 0.409 0.461 $125,000 0.176 0.226 0.252 0.282 0.320 0.373 0.426 $150,000 0.154 0.200 0.224 0.253 0.291 0.343 0.397 $175,000 0.136 0.178 0.201 0.229 0.266 0.318 0.371 $200,000 0.122 0.160 0.183 0.209 0.245 0.295 0.349 $225,000 0.110 0.146 0.167 0.192 0.227 0.276 0.328 $250,000 0.101 0.135 0.154 0.178 0.211 0.259 0.310 $275,000 0.093 0.124 0.143 0.165 0.197 0.243 0.294 $300,000 0.086 0.115 0.133 0.154 0.185 0.229 0.278 $325,000 0.080 0.107 0.124 0.144 0.174 0.217 0.264 $350,000 0.075 0.101 0.116 0.136 0.164 0.205 0.251 $375,000 0.070 0.095 0.110 0.128 0.155 0.195 0.240 $400,000 0.066 0.089 0.103 0.121 0.147 0.185 0.229 $425,000 0.062 0.084 0.098 0.114 0.139 0.176 0.219 $450,000 0.059 0.080 0.093 0.109 0.132 0.168 0.209 $475,000 0.056 0.076 0.088 0.104 0.126 0.161 0.201 $500,000 0.053 0.072 0.084 0.099 0.121 0.154 0.193 $600,000 0.045 0.061 0.071 0.083 0.102 0.131 0.166 $700,000 0.039 0.052 0.061 0.072 0.088 0.114 0.145 $800,000 0.035 0.047 0.054 0.064 0.078 0.101 0.129 $900,000 0.031 0.042 0.048 0.057 0.070 0.090 0.116 $1,000,000 0.029 0.038 0.044 0.051 0.063 0.082 0.105 $2,000,000 0.017 0.021 0.024 0.027 0.033 0.041 0.053 $3,000,000 0.013 0.017 0.018 0.021 0.024 0.029 0.036 $4,000,000 0.011 0.014 0.015 0.017 0.020 0.024 0.029 $5,000,000 0.010 0.012 0.013 0.015 0.017 0.020 0.024 $6,000,000 0.008 0.010 0.011 0.012 0.014 0.017 0.020 $7,000,000 0.007 0.009 0.010 0.011 0.013 0.015 0.018 $8,000,000 0.006 0.008 0.008 0.010 0.011 0.014 0.016 $9,000,000 0.005 0.007 0.008 0.009 0.010 0.013 0.015 $10,000,000 0.005 0.006 0.007 0.008 0.009 0.012 0.014 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 0.641 0.690 0.712 0.735 0.756 0.789 0.813 $15,000 0.586 0.642 0.666 0.691 0.716 0.754 0.784 $20,000 0.545 0.603 0.629 0.656 0.684 0.725 0.759 $25,000 0.511 0.572 0.599 0.627 0.658 0.700 0.738 $30,000 0.483 0.546 0.573 0.602 0.635 0.679 0.719 $35,000 0.458 0.522 0.551 0.581 0.614 0.660 0.702 $40,000 0.436 0.501 0.531 0.561 0.596 0.643 0.687 $50,000 0.398 0.465 0.495 0.527 0.564 0.614 0.661 $75,000 0.329 0.395 0.427 0.460 0.501 0.555 0.607 $100,000 0.280 0.344 0.375 0.410 0.453 0.509 0.565 $125,000 0.243 0.304 0.335 0.370 0.414 0.472 0.530 $150,000 0.216 0.273 0.303 0.338 0.382 0.441 0.501 $175,000 0.193 0.247 0.276 0.310 0.354 0.413 0.473 $200,000 0.175 0.225 0.253 0.286 0.330 0.388 0.449 $225,000 0.159 0.207 0.234 0.265 0.308 0.366 0.426 $250,000 0.147 0.192 0.217 0.248 0.289 0.347 0.407 $275,000 0.136 0.178 0.202 0.232 0.272 0.329 0.387 $300,000 0.126 0.166 0.189 0.217 0.256 0.312 0.370 $325,000 0.117 0.155 0.177 0.204 0.242 0.296 0.353 $350,000 0.110 0.146 0.167 0.193 0.229 0.282 0.338 $375,000 0.103 0.137 0.158 0.182 0.218 0.269 0.324 $400,000 0.097 0.130 0.149 0.173 0.207 0.257 0.311 $425,000 0.092 0.123 0.141 0.164 0.197 0.246 0.298 $450,000 0.087 0.117 0.134 0.156 0.188 0.235 0.287 $475,000 0.083 0.111 0.128 0.149 0.180 0.226 0.276 $500,000 0.079 0.106 0.122 0.142 0.172 0.217 0.266 $600,000 0.066 0.089 0.103 0.121 0.147 0.186 0.231 $700,000 0.057 0.077 0.089 0.104 0.127 0.163 0.203 $800,000 0.051 0.068 0.079 0.092 0.113 0.145 0.182 $900,000 0.045 0.061 0.070 0.082 0.101 0.130 0.163 $1,000,000 0.041 0.055 0.064 0.074 0.091 0.117 0.148 $2,000,000 0.023 0.030 0.034 0.038 0.046 0.059 0.075 $3,000,000 0.018 0.022 0.025 0.028 0.033 0.041 0.051 $4,000,000 0.015 0.019 0.021 0.023 0.027 0.032 0.040 $5,000,000 0.013 0.016 0.018 0.020 0.023 0.028 0.033 $6,000,000 0.011 0.014 0.015 0.017 0.019 0.023 0.028 $7,000,000 0.009 0.012 0.013 0.015 0.017 0.021 0.025 $8,000,000 0.008 0.011 0.012 0.014 0.016 0.019 0.022 $9,000,000 0.008 0.010 0.011 0.012 0.014 0.017 0.020 $10,000,000 0.007 0.009 0.010 0.011 0.013 0.016 0.019 This loss limit is not applicable for retrospective rating in this state