Accident Limitations for Retrospective Rating

The need for changes in retrospective rating plan accident limitation charges has been apparent for some time. This paper describes recently adopted recommendations of the National Council on Compensation Insurance for developing such charges. The charges for accident limitations are familiarly known as Excess Loss Premium Factors or ELPF's. They are percentages of standard earned premium which are paid by the policyholder in lieu of his being charged for losses above a selected limit per accident. These charges also vary by industry grouping (hazard groups) to reflect the differences in expected frequency density and size of claim. LOB-Auto Liability