The California Table L [Discussion]

This is both a review of and an alternative to the program described by Mr. Skurnick in "The California Table L" as a generalization of Table M. Table M focuses attention upon risks of a given expected loss size. The aggregate losses of each risk are ordered with the risks producing the least amount of such losses appearing first, the next lowest amount appearing second, etc. From this order, Table M charges or excess pure premium ratios are developed. Simon's methodology generates a family of curves of Table M Values according to expected loss size. Ex/Ind. Risk Rating Plans, LOB-Workers Comp