CAS Exam 8 Fall 2013, Question 11
Study guide: Exam 8
Assume that workers compensation rate adequacy in a particular state has improved for several successive years.
Part a (0.25 points)
Briefly describe the impact this improvement will have on the statewide off-balance.
Part b (0.5 points)
Discuss the effect that the off-balance impact will have on the state's indicated rate level.
Part c (0.5 points)
Discuss the effect on the off-balance factor and the state's premium adequacy over time if inadequate rates are approved.
Part d (0.75 points)
Fully explain why the experience rating off-balance is frequently a credit.
Answer this question and see the worked solution