ISO.Rating — BattleActs Exam 8 Forum

Present Average Company Rate Method

Lcparga1 — Tue, 07 Oct 2025 18:15:49 +0000

Hello,

Detrend factor 5B adjusts for both pure premium trend and exposure trend. What is the difference between these trends?

Thank you!

Rule 8

Lcparga1 — Tue, 07 Oct 2025 18:35:54 +0000

Hello,

Is there a historical problem where it shows how to apply rule 8?

Thank you!

Theoretical Mod question

Lcparga1 — Tue, 02 Sep 2025 22:09:43 +0000

Hi,

If we were asked to calculate the experience mod factor and the question had expected development, and say we were asked what would happen to the e-mod if the loss data was evaluated 3 months after the original date (e.g. Oct 1 instead of July 1).

The e-mod would decrease since the loss evaluation date would only affect expected development, and 3 months later would decrease AER, which would decrease the mod = Z*(AER-EER)/EER. Is this correct or am I missing something?

Thank you!

ILF in Historic Exposures at Present Company Rates Method

PBK — Mon, 21 Oct 2024 14:01:19 +0000

I'm (very) confused by limits used in the wiki's example:

In the standard approach and in the Present Average Company Rates method, we start with Basic Limits premium.

In the HEPCR method, we apply an ILF to the current rates * historic exposures * ELR to arrive at BLEL. This, to me, says that the provided current rates are not basic limits rates. If we are given current level premium, but could otherwise use the standard or PACR method, should we use ILFs as we do in the HEPCR method?

However, the ILFs vary with the aggregate limit of the *historic* period: 1) if we're adjusting current rates to basic limits, why would it depend on historic limits? 2) we use the basic limits per-occurrence & historic aggregate ILFs; doesn't basic limits denote a $200k aggregate? 3) The resulting CSLC will be compared to actual basic limits losses for the period - if those are adjusted to basic limits (including aggregate limits), why would expected losses be adjusted to a different aggregate limit?

Sorry for the long post, and thanks for your help.

Basic Limits ISO CGL

jmoore13 — Sun, 22 Oct 2023 14:53:44 +0000

I had it in my head that we needed to know Basic Limits (rule 5A) when calculating the CSLC in at least one of the three methods, but now I don't see it so I'm thinking I made it up. I know we need it to calc the E-mod (for loss history) but wanted to check that they're not used in any of the CSLC calcs? Thanks!

Example question 4 - Calc E-mod given CSLC

jmoore13 — Sat, 07 Oct 2023 00:44:42 +0000

Hi! Is it a coincidence that the Basic Limit that we cap the loss at is 100k and the prem/ops + products Basic Limits Premium = 100k? I wasn't sure if those two things are unrelated (i.e., Basic limit is from the list of basic limits in the wiki, while the prem/ops + products Basic Limit Premium = 100k but not because of that). Thanks in advance!

ISO manual lookup tables

fhorsman26 — Mon, 06 Sep 2021 18:23:53 +0000

When trying to complete problems that require looking up values in the ISO manual (for example F2014Q8), where do I find the appropriate tables?

The syllabus says, "Portions of this manual will be provided with the examination’s reference materials to the extent needed to answer questions on the exam," but these reference materials are not included when I download the Examiner's report.

Answers based on the updated ISO rating plan

xuchaofan8 — Wed, 21 Sep 2022 03:42:12 +0000

Hi,

Could BattleActs provides answers for old exam questions based on the updated plan so that we can check if our answer is correct? The sample answer used old versions.

Thank you,

CFX

Exposure vs sales under ISO

xuchaofan8 — Sat, 01 Oct 2022 14:45:10 +0000

Hi,

For NCCI, it's clear that the exposure for rating is the payroll/100. However, what is the rule for ISO? For example in the Excel Question 3, we just use the sales amount as exposure. In the ISO file, it seems like they gave an example using sales/1000 as exposure. Could you let us know what do you think as the default option in the exam?

Thank you,

CFX

2015#9 - basic limit

xuchaofan8 — Thu, 22 Sep 2022 03:56:45 +0000

Why it's $100,000 for basic limit not $200,000? Thank you.

Rule 11

perlik12 — Thu, 30 Sep 2021 17:02:22 +0000

The BattleActs summary says that the "If the experience with a carrier is not a full year then Table 11 provides additional loss development factors to bring that experience to the latest valuation date to then allow the usual LDFs in Rule 15 to be applied." Are those LDFs truly applied in addition the Table 15 LDFs? To me it appears that these Table 11 supplementary LDFs bring losses to ultimate just like Table 15. It's just that Table 15 doesn't contain LDFs for anything less than 18 months maturity, and Table 11 contains LDFs for 15,12,9 and 6 months maturity.

Am I missing something? Thanks for the help!