RE: Graves/Castillo -- CGL Prem/Ops Ratemaking
Gardner, Brad ( (no email) )
Thu, 26 Feb 1998 16:22:01 -0700
On page 639, row (9) it states that we are calculating an indicated
monoline-multiline rate change. So we must use monoline-multiline losses
and premiums. After extending the exposures, we get only monoline
premiums. IPMF's are used to generate the multiline exposures to a
multiline level.
After we calculate the monoline-multiline rate indication, we must
distribute this change by type of policy to get the monoline only change
(Bailey type minimum bias procedure). This calculation is shown on page
684 (+14.0%)