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An insurance company sells workers compensation insurance, which includes both indemnity and medical loss types. In preparation for its next rate filliing, effective January 1
An insurance company sells workers compensation insurance, which includes both indemnity and
medical loss types. In preparation for its next rate filliing, effective January the company
uses the following information about its book of business for accident year evaluated as of
December :
The indemnity development factor to ultimate equals
The medical development factor to ultimate equals
The indemnity annual loss and ALAE trend equals
The medical annual loss and ALAE trend equals
Accidents are evenly distributed throughout the experience period.
All policies are annual.
Rates are in effect for one year.
The base territory remains the same.
Calculate the indicated territorial relativities to the base territory.
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