CAS Exam 8 Fall 2016, Question 10
Study guide: Exam 8
An insured is subject to experience rating under the National Council on Compensation Insurance (NCCI)'s Experience Rating Plan Manual for Workers Compensation and Employers Liability Insurance. The following information about the insured is given:
| Payroll (Experience Period) | $5,000,000 |
|---|---|
| State | Alabama |
| Class | 7705 |
The following claims apply to the experience period. Each claim involves only one person, and none are disease claims:
| Claim Number | Type | Loss |
|---|---|---|
| 1 | Indemnity | 29,000 |
| 2 | Medical | 30,500 |
| 3 | Indemnity | 90,000 |
| 4 | Indemnity | 1,500 |
| 5 | Medical | 45,000 |
Calculate the experience modification for this insured.
Part a (2.5 points)
Answer this question and see the worked solution