The Interaction of Maximum Premiums, Minimum Premiums, and Accident Limits in Retrospective Rating

This paper discusses the inaccuracies in workers compensation retrospective rating that resulted from the former method of separately calculating insurance charges from Table M and excess loss factors for loss limitations. These ideas have been previously presented by Glenn Meyers and Ira Robbin. However, this paper presents the ideas in a coherent fashion using Lee diagrams. This should make these important ideas more accessible to CAS students. Keyword: Retrospective Rating, LOB - Workers Compensation