Re: ISO Exper Rating

Lou_Brown@ncci.com
Thu, 1 Oct 1998 12:38:07 -0400

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I agree with Mike's reasoning and I think he has laid it out in a fashion
that is very easy to follow and understand. An additional point to note is
that prior to multiplying by the LDFs (to determine IBNR) the basic limits
expected losses are multiplied by the EER. This takes into account the
fact that the actual losses are limited by the MSL and thus, the IBNR is
also "limited" to an equivalent level. Please correct me on this if I am
wrong as this is how I interpreted that part of the calculation. Further,
I take back what I said. I guess any question is fair game when you think
about it. It's great that you were able to answer your own question, Mike,
and I thank you for posting it to the board for discussion.

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