B4. ISO

Question 1

ISO mod formula

Answer 1

Zx(AER-EER)/EER

Question 2

3 methods to obtain company subject loss cost

Answer 2

1. standard methods
2. present average company rate method
   - BLEL = AvgRate x historical special exposure x ELR
   - CSLC = BLEL x 13B x 13C x detrend fct 14 5C
3. Historical exposures at present compnay rate method
   -BLEL = exposure x basic rate x ILF x ELF
   CSLC = BLEL x detrend fct 14 5C

Question 3

Risk eligibility for schedule rating for ISO

Answer 3

Z>=0.03

Question 4

risk eligibility for experience rating for ISO

Answer 4

Z>=0.07

Question 5

Expected development formula for ISO

Answer 5

CSLCxEERxLDF

Question 6

range of schedule mods

Answer 6

Location, exposure inside premises -5% to 5%
Location, exposure outside premises, -5% to 5%
Premises, condition and care, -10% to 10%
Equipment, type, condition and care, -10% to 10%
Classification, -10% to 10%
employees -6% to 6%
Cooperation, medical facilities, -2% to 2%
Cooperation, safety program, -2% to 2%
Maximum credit or debit = 25%