Compare NCCI and ISO Experience Rating Flashcards

1
Q

ISO vs. NCCI: Experience period

A

Both use 3 years, lagged 1 year

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2
Q

ISO vs. NCCI: Experience mod

A

ISO: Add 1 to put in factor form

NCCI: Already in factor form

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3
Q

ISO vs. NCCI: Credibility

A

ISO: Up to 100% of limited loss experience

NCCI: Less than 100%

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4
Q

ISO vs. NCCI: Plan type

A

ISO: No-split

NCCI: Single-split

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5
Q

ISO vs. NCCI: ALAE treatment

A

ISO: Included

NCCI: Not included

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6
Q

ISO vs. NCCI: Other expenses

A

Both exclude other expenses

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7
Q

ISO vs. NCCI: Trending of losses

A

Both detrend expected loss only

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8
Q

ISO vs. NCCI: Benefit levels

A

ISO: Not relevant

NCCI: Adjusted in expected losses

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9
Q

ISO vs. NCCI: PAFs

A

ISO: Used for claims-made

NCCI: No claims-made policies

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10
Q

ISO vs. NCCI: Loss development

A

ISO: Compares ultimate losses

NCCI: Compares undeveloped losses

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11
Q

ISO vs. NCCI: Excess loss definition

A

ISO: Above basic limits and above MSL

NCCI: Above split point

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12
Q

ISO vs. NCCI: Use of excess losses

A

ISO: Ignored in calculation

NCCI: Used in calculation

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13
Q

ISO vs. NCCI: Loss limits

A

ISO: Basic limits and MSL

NCCI: SAL, multi-claim, and disease

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14
Q

ISO vs. NCCI: Responds to

A

ISO: Primarily frequency (losses are capped)

NCCI: Frequency and severity

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