NCCI Retro Rating Plan

Question 1

Eligibility for NCCI Retro rating plan

Answer 1

$25K in estimated SP for 1-year plan

$75K in estimated SP for 3-year plan

$1M in estimated SP for LRARO

Can combine with other casualty LOB

Question 2

NCCI retro premium without an occurrence limit

Answer 2

R = (B + cA + PcV)T

V = % unreported x ELR

Question 3

Special case: no minimum premium Table M Search

Answer 3

Question 4

NCCI retrospective rating with an occurrence limit

Answer 4

R* = (B^LM + cA_D + PcF + PcV)T

F is ELF = expected losses in excess of the per-occurrence limit as a percentage of SP

F = k * ELR

Question 5

NCCI Retro Rating basic premium, with an occurrence limit

Answer 5

B^LM = e - (c - 1)E[A] + cI^LM

Question 6

When to run ICRLL procedure

Answer 6

Any time there is a per-occurrence limit

Question 7

ELPPF

Answer 7

Excess loss pure premium factor

Equal to k

F = k * ELR

Question 8

Final step to determine retro premium

Answer 8

Check to see if it is capped by minimum or maximum!

Question 9

Overlap within Tables

Answer 9

Using regular Table M without adjustment for per-occurrence limit would overlap with the charge for the per-occurrence limit