ISO.Rating

Reading: Insurance Services Office, Inc., Commercial General Liability Experience and Schedule Rating Plan, 07/14/2014.

Synopsis: To follow...

Study Tips

In the exam you may be given the information you need from the manual directly in the exam question or you may be given a supplement consisting of pages from the manual. The information you'll be given will likely be the various tables rather than the actual rules, so your goal is to know how to apply the rules quickly and concisely which includes knowing where to look up the necessary information.

Since the numbers used in the schedule change from time to time, we're going to always provide you with the numbers or excerpts of tables that you'll need to solve a problem. So if you're following along with the latest study kit from the CAS you may not have the same figures. However, you should make sure you can get to the same location in the study kit so you can be efficient with your time in the exam.

Estimated study time: 1 day (not including subsequent review time)

BattleTable

Based on past exams, the main things you need to know (in rough order of importance) are:

Questions are held out from most recent exam. (Use these to have a fresh exam to practice on later. For links to these questions see Exam Summaries.)

reference	part (a)	part (b)	part (c)	part (d)
E (2018.Fall #11)	Experience Modification - calculate	Schedule Credit - assess reasonability
E (2017.Fall #9)	Experience Modification - calculate premium
E (2015.Fall #9)	Experience Modification - calculate factor
E (2014.Fall #8)	Ultimate Loss - adjust using experience
E (2013.Fall #8)	Experience Modification - reverse engineer
E (2012.Fall #14)	Large Losses - calculate minimum number

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In Plain English!

Overview

The ISO manual is used to experience and schedule rate Commercial General Liability risks. Policies may be written on a per-occurrence basis which covers claims that occur during the period the policy is effective. Or, policies may be written on a claims-made basis which covers any claim reported during the effective period irrespective of when the accident occurred.

Eligibility

To be eligible to use the experience rating in the ISO manual, a risk must have a credibility of at least 0.07 as determined using Table 16 (found in Rule 16).

To use Table 16 you need to be given or calculate the Company Subject Loss Cost (Expected Losses). We'll go into the calculation later in this wiki article.

To be eligible to use the schedule rating in the ISO manual, a risk must have a credibility of at least 0.03 as determined using Table 16.

Experience Rating

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