Graves/Castillo -- CGL Prem/Ops Ratemaking

Denise Ambrogio ( (no email) )
Thu, 26 Feb 1998 17:15:42 -0500

I think I'm missing a fundamental part of this paper. My question is about
Premiums used in the Overall Rate Level Indication.

As I understand this, PPMRs are calculated using an extension of exposures
method, utilizing Current Monoline Rates. This would give us the monoline
premium expected from multiline exposures.

Since we are calculating a "Monoline" Rate Indication, why do we want to
adjust that premium with an IPMF to adjust them from the monoline rate
level to a multiline level?

What am I missing?