The California Table L

The retrospective rating plan of the California Inspection Rating Bureau is a tabular plan with a fixed per accident limit. In 1974, in order to bring the rating values up to date, a new table of charges was constructed. In the previous updating the insurance charge had been taken from the countrywide 1965 Table M of the National Council on Compensation Insurance and the charge for the per accident limit had been derived from a study of California claims. The Bureau decided to base the new table of charged wholly upon California exposure. Since the per accident limit is fixed in the plan, it was decided to construct a table of charges that would include the cost of the per accident limit in the charge. This table was names "Table L." Its advantage is that it reflects both the charge for limitation of total losses and the charge for limitation of individual accidents, but the overlap between these charges is eliminated. Ex/Ind. Risk Rating Plans/LOB-Workers Comp