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You are here: Home . bulletins . 1998 . b0073-8d

Workers' Compensation Revised Relativities

Notice of Carrier Intent - Instructions Page 4

INSTRUCTIONS FOR COMPLETING THE NOTICE OF CARRIER INTENT

OPTION 1:

  • Company Name and NAIC Number: Enter the company name and NAIC code of each company in your group for which you are filing.
  • Column (1) - Current Deviation: Enter each company´s current average deviation from the 1/1/97 Relativities.
  • Column (2) - Rate Change: Enter a factor of 1.000.
  • Column (3) - Off-Balance Factor: Enter a factor of 0.700.
  • Column (4) - Deviation From 1/1/99 Relativities: Calculate the deviation from the 1/1/99 relativities as follows: Column (1) / Column (3). If the resulting deviation for a company is greater than 1.000, then that company must provide actuarial support for its deviation.
OPTION 2:
  • Company Name and NAIC Number: Enter the company name and NAIC code of each company in your group for which you are filing.
  • Column (1) - Current Deviation: Enter each company´s current average deviation from the 1/1/97 Relativities.
  • Column (2) - Rate Change: Enter a factor of 1.000.
  • Column (3) - Off-Balance Factor: Enter the company, or group off-balance factor. Actuarial support for the off-balance factor must be provided. Actuarial support consists of an exhibit showing the following: (i) the payroll for each classification for which it writes business; (ii) the corresponding 1/1/97 relativity; (iii) the product of (i) and (ii); (iv) the corresponding 1/1/99 relativity; and (v) the product of (i) and (iv). The company´s off-balance factor is the sum over all class codes of (v) divided by the sum over all class codes of (iii).
  • Column (4) - Deviation From 1/1/99 Relativities: Calculate the deviation from the 1/1/99 relativities as follows: Column (1) / Column (3). If the resulting deviation for a company is greater than 1.000, then that company must provide actuarial support for its deviation.
OPTION 3:
  • Company Name and NAIC Number: Enter the company name and NAIC code of each company in your group for which you are filing.
  • Column (1) - Current Deviation: Enter each company´s current average deviation from the 1/1/97 Relativities.
  • Column (2) - Rate Change: Enter the same number shown on Column (3) (see column (3), below). This number should be consistent with the overall rate change found on TDI´s Filings Made Easy Exhibit C, column (E), line (3). For example, if Column (2) is 0.800, thenExhibit C, col. (E), line 3 should be -20%.
  • Column (3) - Off-Balance Factor: Enter either 0.700 or, the company determined off-balanced factor. If column (3) is a number other than 0.700, actuarial support for the off-balance factor must be provided. See the instructions for column (3) under option 2 for required support.
  • Column (4) - Deviation From 1/1/99 Relativities: Enter the deviation shown in column (1). If the resulting deviation for a company is greater than 1.000, then that company must provide actuarial support for its deviation.
OPTION 4:
  • Company Name and NAIC Number: Enter the company name and NAIC code of each company in your group for which you are filing.
  • Column (1) - Current Deviation: Enter each company´s current average deviation from the 1/1/97 Relativities.
  • Column (2) - Rate Change: Enter the rate change as a factor (a -10% rate change should be expressed as 0.900). This number should be consistent with the overall rate change found on TDI Filings Made Easy Exhibit C, column (E), line (3). For example, if Column (2) is 0.900, then Exhibit C, col. (E), line 3 should be -10%.
  • Column (3) - Off-Balance Factor: Enter either 0.700 or, the company determined off-balanced factor. If column (3) is a number other than 0.700 actuarial support for the off-balance factor must be provided. See the instructions for column (3) under option 2 for required support.
  • Column (4) - Deviation From 1/1/99 Relativities: Calculate the deviation from the 1/1/99 relativities as follows: [Column (1)*Column (2)]/ Column (3). If the resulting deviation for a company is greater than 1.000, then that company must provide actuarial support for its deviation.
OPTION 5:
  • Company Name and NAIC Number: Enter the company name and NAIC code of each company in your group for which you are filing.
  • Column (1) - Current Deviation: Enter each company´s current average deviation from the 1/1/97 Relativities. This should be based on the company´s most current distribution of business by class code. Actuarial support for this figure must be provided. See the instructions for column (3) under option 2 for required support.
  • Column (2) - Rate Change: Enter the rate change as a factor (a -10% rate change should be expressed as 0.900). This number should be consistent with the overall rate change found on TDI Filings Made Easy Exhibit C, column (E), line (3). For example, if Column (2) is 0.900, then Exhibit C, col. (E), line 3 should be -10%.
  • Column (3) - Off-Balance Factor: Enter a factor of 1.000, or any applicable off-balance factor. Actuarial support for this figure must be provided. See the instructions for column (3) under option 2 for required support.
  • Column (4) - Deviation From 1/1/99 Relativities: Enter the average deviation from the 1/1/99 relativities as a weighted average of the deviations from the 1/1/99 relativities for each class code.
Attachment 5

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Last updated: 01/04/2018

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