NCCI.InformationalExhibits

Reading: National Council on Compensation Insurance, Circular CIF-2018-28, 06/21/2018. Informational Exhibits 1 — 3.

Synopsis: This is the second of two articles on the NCCI Circular CIF-2018-28 reading. It covers the second part of the circular which is a series of informational exhibits that explain how the NCCI derives their aggregate excess loss factors on demand for their retrospective rating plan. The first part of the NCCI Circular reading is available at NCCI.Circular.

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Estimated study time: 4 hours (not including subsequent review time)

BattleTable

This is a new reading and due to the CAS no longer publishing past exams there are no prior exam questions available. At BattleActs we feel 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)
Currently no prior exam questions

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In Plain English!

Overview

There are three informational exhibits which detail the derivation of the aggregate excess loss factors for both the on-demand factors and those provided in the pre-tabulated countrywide tables.

In terms of testability, the first exhibit and the last part of the third exhibit are probably more realistic to draw material from.

Informational Exhibit 2

This exhibit gives you seven tables of aggregate excess loss factors for the state of Alaska, one for each of the seven hazard groups. The tables assume there is no loss limit and all exposures are from a single hazard group.

Each table is grouped by entry ratio (rows) from 0.2 to 2 in increments of 0.2 and then from 2 to 10 in increments of 1. The columns are the expected number of claims ([math]E[N][/math]).

Alice: "This is a really weird exhibit to have in the study kit as none of the other materials in the Circular refer to these tables. Make sure you know the rest of the NCCI circular material really well and then if they test you on these particular tables you should be able to logic your way through it."

Informational Exhibit 3

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