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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

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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 1,2017, the company
uses the following information about its book of business for accident year 2015, evaluated as of
December 31,2015:
The indemnity development factor to ultimate equals 2.50
The medical development factor to ultimate equals 1.50.
The indemnity annual loss and ALAE trend equals 3%.
The medical annual loss and ALAE trend equals 6%.
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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