Accident Limitations for Retrospective Rating [Discussion]

Mr. Harwayne’s paper describes the new procedure for developing Excess Loss Premium Factors (ELPF’s ). In addition he mentions two portions of the old method not adopted until after Dunbar Uhthoff’ wrote his paper. These are: (a) the use of the 1.6 development factor; and (b) the spreading of the average ELPF over the Hazard Groups through the use of Hazard Group differentials. Mr. Harwayne briefly mentions that these differentials were under study. Since this paper was presented the National Council on Compensation Insurance (NCCI) has filed a revision in the current differentials. The new activities for all loss limitation sizes are those found in Appendix B, Exhibit B-4, Column (8) of Mr. Harwayne’s paper.