Correction of Certain Deficiencies in the Experience Rating Plan by theSo-called "Account Current" Method [Discussion]

Mr. Senior and Mr. Kormes of the Compensation Insurance Rating Board are to be congratulated on the pioneering work they are doing in connection with rate-making and rating plans. Mr. Senior has proposed that calendar year experience be used in determining compensation rate levels. Following a somewhat similar line of reasoning, Mr. Kormes has recommended that recognition be given in the experience rating calculation to the effect of the development of the loss data used in previous ratings during the interval between the two latest reportings of the experience. Out of such investigations and studies as they have been making, constructive changes may ultimately result.