The Determination of Pure Premiums for Minor Classifications on which the Experience Data is Insufficient for Direct Estimate [Discussion]

The method described by Mr. Mowbray for the determination of pure premiums in classifications which, taken singly, do not yield an adequate payroll exposure, contemplates two principal steps. First, the classifications must be grouped in such manner that within any group there will appear only classifications which may be presumed to be closely related in hazard. Second, there must be determined for each classification within each group, its relative hazard as compared with some one classification selected as the standard.