The Boiler and Machinery Premium Adjustment Rating Plan [Discussion]

Mr. Foster has done an excellent job of describing the intricate details of the Boiler and Machinery Premium Adjustment Rating Plan of the National Bureau of Casualty Underwriters. Although this plan has limited use, it is a very important part of the Boiler and Machinery line of insurance because, as Mr. Foster points out, at the present time this plan is the only type of formula rating plan offered, through which a risk may develop a premium more in keeping with the actual costs incurred under the policy. As this paper is explanatory by nature, any discussion must be limited to emphasizing various points made and, perhaps adding a little information which will help complete the study made of this plan.