Multiple Coverage Experience Rating Plan [Discussion]

Mr. Klaassen’s paper develops an experience rating plan utilizing the multi-split principle for automobile liability, miscellaneous liability and automobile physical damage combined. This combination of coverages for rating is proposed in order to achieve a larger and more stable base upon which to predicate an individual risk’s experience modification. Mr. Klaassen’s basic assumption underlying the combination of experience of different lines for a particular risk is that “the inherent hazard of any one coverage is correlated with that of other coverages for a given risk”.