Schedule Rating by Formula

It is the purpose of this paper to call attention to a method of rating compensation risks, which has already had some discussion and has been practically applied to several groups of classifications. A more or less general discussion of this method took place at the joint Manual Committee meeting in the Hotel Manhattan, the latter part of September. It was pointed out that in certain classifications, there were inherent differences of degree of hazard within the same trade arising out of the organization of the particular risk; that these differences must be treated to avoid discrimination; that the making of further sub-classifications would lead to a very great increase in the size of the manual, and an undesirable subdivision of statistical data, and that a possible solution of the difficulty lay in an extension of the schedule rating plan along the lines indicated by the treatment of "Metal Goods, N.O.C."