NEW YORK WORKERS’ COMPENSATION OCTOBER 1, 2020 LOSS … · New York Workers’ Compensation October 1, 2020 Loss Cost Revision Explanatory Memorandum This memorandum, together with

NEW YORK WORKERS’ COMPENSATION

OCTOBER 1, 2020 LOSS COST FILING

• Actuarial Committee Recommended Loss Cost Level Change: 1.0%

• Proposed Loss Cost Level Change: 1.0%

• Approved Loss Cost Level Change: 1.0%

The Rating Board submitted the 2020 General Loss Cost Revision to the New York State Department of Financial Services on May 15, 2020 requesting an average change of 1.0% in the loss cost level to become effective on October 1, 2020.

The loss cost revision reflects the experience of the two most recent policy years, as well as projected trends, benefit level changes, and changes in loss adjustment expenses. The filing proposed no changes to the terrorism and catastrophe loss cost provisions.

While this instant filing is a result of the Rating Board’s standard ratemaking methodology and does not contain any adjustments related to the pandemic, the Rating Board is nevertheless committed to continuing to analyze the impact of the pandemic as more information becomes available.

The filing was approved on July 15, 2020.

The attached actuarial exhibits provide specific information on all components of the approved 2020 loss cost revision. Included also is the detailed Filing Memorandum that accompanied the Rating Board’s filing submission.

The Department of Financial Services’ approval letter is also attached and can be found following the actuarial exhibits.

New York Compensation Insurance Rating Board 733 Third Avenue New York, NY 10017 Tel: (212) 697-3535

New York Workers’ Compensation

October 1, 2020 Loss Cost Revision

Explanatory Memorandum

This memorandum, together with the attached actuarial exhibits, provides supporting documentation for an overall loss cost level change of -1.0%, to become effective on October 1, 2020.

During the preparation of this filing, the COVID-19 pandemic emerged and drastically impacted the life of every New Yorker as well as the economy, and continues to do so as of the date of this filing. The financial data as of December 31, 2019, which was used to derive this filing’s indication, does not include losses resulting from the pandemic, and the Rating Board has not added a provision to account for these losses or assumptions reflecting potential changes in the economy because (a) the ultimate duration and impact of the pandemic are still very much unknown, and (b) whether the pandemic will have an offsetting impact on other ratemaking measures (e.g., frequency) is also presently unknown. Accordingly, while this instant filing is a result of the Rating Board’s standard ratemaking methodology and does not contain any adjustments related to the pandemic, the Rating Board is nevertheless committed to continuing to analyze the impact of the pandemic as more information becomes available.

The proposed loss cost change is based on the latest financial data reported by the Rating Board’s member carriers and reflects the application of generally accepted actuarial principles and methodologies.

The elements contributing to the overall change are summarized below and are presented in detail on the following pages.

1. Change indicated by Policy Year 2018 experience 1.017 2. Change indicated by Policy Year 2017 experience 1.027 3. Average change indicated by experience [(1) + (2)] / 2 1.022 4. Change in prospective claim cost, frequency, and wage levels 0.960 5. Change in loss adjustment expense (LAE) 0.999 6. Change due to experience, trend and LAE (3) x (4) x (5) 0.980 7. Change due to standard legislation and regulation 1.010 8. Indicated Manual Loss Cost Level Change (6) x (7) 0.990 9. Change in Terrorism Provision 1.000 10. Terrorism Provision loss cost as percent of total loss costs 0.028 11. Change in Provision for Natural Disasters and Industrial Cats. 1.000 12. Natural Disasters and Industrial Cats. Provision Loss Cost

as percent of total loss costs 0.006 13. Proposed Total Loss Cost Level Change

[(8) x (1.0 - (10) - (12)) + (9) x (10) + (11) x (12)] 0.990

Please find a listing of the actuarial exhibits at the end of this explanatory memorandum for the ease of reference.

October 1, 2020 Loss Cost Filing Explanatory Memorandum Page 2 1. Experience of Policy Years 2018 and 2017

The calculation of the indicated change in loss costs derived from the experience of policy year 2018 is presented as Exhibit B, and of policy year 2017 as Exhibit C. In the determination of the experience component of the indication, two changes are introduced with this year’s filing. First, while in prior years the experience component was based strictly on incurred (i.e., paid plus case) ultimate losses, this year an additional measure of ultimate losses based strictly on paid losses is also utilized. Second, to further promote stability in the aggregate policy year experience indication, the experience of both policy years reflects the Bornhuetter-Ferguson (“B-F”) Method. The Incurred B-F Method is shown on Sheet 1 of Exhibits B and C, while the Paid B-F Method is shown on Sheet 2. The experience of policy years 2018 and 2017, valued as of December 31, 2019, has been compiled from the latest available financial data submitted by the Rating Board's member companies. Similar to past years, large deductible experience is included in the determination of the indicated experience change. Although this experience is still viewed as unique and similar to self-insurance, its inclusion reflects the Department of Financial Services’ (“DFS”) long held position that this data should be included in the annual NYCIRB filing. Furthermore, at the previous direction of the DFS, the policy year indication also includes the experience of the State Insurance Fund (“SIF”).

Beginning with policy year 2008, standard premiums have been reported in the annual New York Financial Data Calls on a designated statistical reporting (“DSR”) level. DSR level represents standard premium reported to NYCIRB excluding the effect of carrier loss cost multipliers. As a result of removing loss cost multipliers, the premium becomes an expected loss cost level against which the actual loss experience can be measured.

The reported premiums are adjusted to the current loss cost level. This adjustment is done in accordance with standard actuarial procedures, reflecting the latest approved loss cost level changes. The resulting final premium on level factors are 0.809 for policy year 2018 and 0.758 for policy year 2017. The on-level calculations are shown on Exhibit D, Sheet 1A (page 6). These factors also reflect adjustments to bring premiums to the same level of the average Construction Premium Adjustment Program (“CPAP”) credit and the average experience rating modification factor that are expected during the prospective filing period. The total off-balance adjustment factors are 1.002 and 0.997 respectively for policy year 2018 and policy year 2017. The derivation of these adjustment factors can be found on Exhibit D, Sheet 1B (page 7). Premium development factors for non-large deductible are based on implied development derived using separate private carriers and SIF development patterns, which are based on three-year averages. Premium development factors for large deductible experience are based on mid 3 of 5 year average.

Similar to previous filings, indemnity and medical losses were analyzed separately in recognition of the significant differences in their respective development patterns.

In the determination of loss development factors, losses emanating from the September 11, 2001 terrorist attacks have been excluded from the ratemaking data. Both policy year 2000 and policy year

October 1, 2020 Loss Cost Filing Explanatory Memorandum Page 3

2001 losses have been adjusted to remove the effects of the September 11, 2001 experience that was identified and reported under Catastrophe Code 48. The definition of Catastrophe Code 48 encompasses claims directly arising from the commercial airline hijackings of September 11, 2001 and the resulting subsequent events with accident dates of September 11, 2001 through September 14, 2001. For loss development, two, three, four and five-year average link ratios, as well as a three-year average, calculated after excluding the highest and lowest points, were analyzed for both indemnity and medical. Development patterns can vary at different report levels. Following examination of the different factors, the selected loss development methodology utilizes five-year average factors from first to twentieth reports to smooth the impact of any variations in the observed development patterns. In addition, loss development factors were first derived separately for private carriers and SIF, and the ultimate losses for these two market segments were used to arrive at the implied development factors for the non-large deductible experience. Separate sets of development factors and ultimate losses were derived for the non-large deductible experience and the large deductible experience using the same methodology. The procedure used to calculate the incurred loss development factor from 20th to ultimate (the incurred tail factor) is similar to the procedure used in last year’s filing, utilizing case incurred losses, and applying a growth factor. The growth factor is used to adjust the experience of prior years used in the tail calculation to the level of the base development year at 19th report. The adjustment is needed to reflect trend and benefit level changes in the historical experience. Information from policy years 1987 through 1998 was included in the tail factor calculation. An improvement, included in this year’s filing, is the utilization of ten reports of data at ten successive valuations. The final tail factor is determined by averaging these ten factors. This enhancement to the tail methodology should improve the stability of long-term tail factor. Last year, a nine-year average was used. The procedure used to calculate the paid loss development factor from 20th to ultimate (the paid tail factor) is derived using a paid-to-incurred ratio and the incurred tail factor. Information from policy years 1995 through 1999 was included in the calculation of paid-to-incurred ratio. Development factors are then adjusted to reflect the impacts from the historical reforms, such as differences in development patterns between the pre- and post- 2007 environments. The three major components of the 2007 reform are the increase in maximum weekly benefits, the elimination of the Special Disability Fund (“SDF”) and the introduction of capped benefit durations for claimants with non-scheduled Permanent Partial Disability Benefits (“NS-PPD”). In theory, losses that have occurred after the reform would not need to be adjusted for the full impact of the reform, as they are already at the post-reform level. However, because experience from pre-reform years is used to derive loss development factors, using the LDFs as reported may not result in appropriate post-reform ultimate losses. Therefore, some adjustments are warranted. The adjustment due to the implementation of duration caps is derived by restating any pre-reform link ratio from the reported development triangle to post-reform level.


The restatement of each link ratio assumes that a portion of the development that is reflected in the link ratio is attributable to the unwinding of discount on life annuities on NSPPD injuries and for periodic payments on such claims, while the remainder of the development is due to other injuries. Based on Unit Statistical Data and data obtained from the Workers’ Compensation Board (“WCB”) on the distribution of losses prior to the reform, it was determined that 57.7% out of total indemnity costs were attributable to NSPPD, which is the portion of the development factor that needs to be adjusted. The remaining 42.3% of indemnity costs are not adjusted. The calculation is presented on Exhibit CC, Sheet 2D (page 42) with an illustration of the steps presented on Exhibit CC, Sheet 2G (page 45). With respect to the closing of the SDF, prior to the 2013 loss cost filing, indemnity losses were adjusted upward by the full estimated impact of the reform (17.8%). This is because most of the loss development factors are from pre-reform years, and are therefore suppressed, as they reflect the subrogation from the SDF. As part of the 2013 filing, a new approach was taken to determine the impact of the SDF that needs to be applied to the reported losses. Based on information that was obtained from the Special Funds Conservation Committee with respect to the rate at which claims were accepted into the SDF, it was first determined that, on average, 5.8% of indemnity claims were affected by the SDF elimination. This percentage is multiplied by the percentage of cases accepted by the SDF at each development age, to determine the percentage out of all claims that were accepted by the SDF at each development age. The next step in the calculation is to restate each pre-reform link ratio in the loss development triangle using the following formula:

LRS = LRA x SDF% x 0.058 x AF + LRA x (1- SDF% x 0.058) Where LRS = the Restated link ratio, LRA = Adjusted Link Ratio from Duration Cap SDF% = percentage of cases accepted to the SDF at a given development age AF = Adjustment Factor1

The calculation is presented on Exhibit CC, Sheet 2E (page 43) with an illustration of the steps presented on Exhibit CC, Sheet 2G (page 45). An additional adjustment is needed to account for the January 1, 2014 closing of the Re-Opened Case Fund (25-A). The adjustment involved using the same approach that is used to determine the SDF adjustment. The full details of the calculation are presented on Exhibit CC, Sheet 2F (page 44).

1 The adjustment factor was determined in the 2008 Loss Cost Filing by restating the latest available loss development triangle which consisted entirely of pre-reform years in the same way as described above, such that the restated LDF to ultimate is 17.8% higher than the original LDF to ultimate. The 17.8% was the originally estimated impact of the reform on indemnity benefits.


Policy year losses for the large deductible experience are adjusted to an ultimate settlement basis as described above. For the non-large deductible experience, the development adjustments are directly reflected in the development factors, which are derived separately for private carriers and SIF. The adjusted development factors are then used to derive adjusted ultimate losses under the current (post-reform) environment for each market segment. Finally, ultimate losses which were derived separately for private carrier and SIF are combined and are used to determine the adjusted implied development factors. The non-large deductible development data can be found on Exhibit BB, Sheets 1-7 (pages 19-37). For large deductible development, exhibits labeled as Exhibit CC, Sheets 1-5 (pages 38-59) are provided. These pages include premium development factors for the policy year, and separate indemnity and medical loss development factors for both case incurred and paid losses. Developed losses are then adjusted to reflect the current benefit level. The loss on-level calculations are presented on Exhibit D, Sheets 2 and 3 (pages 9-10). The standard loss on-level calculation is shown to bring the losses to the current benefit level. The final indemnity loss on-level factors are 1.007 for policy year 2018 and 0.992 for policy year 2017. For medical, the factors are 1.074 for policy year 2018 and 1.106 for policy year 2017. Total adjusted loss amounts are then divided by total adjusted premium (at loss cost level) amounts separately for large deductible and non-large deductible business to obtain the indicated loss ratio for each market segment. In accordance with the B-F procedure, these base indications (after adjusting to include LAE) are assigned weights equal to the percentage of losses emerged (from the loss development analysis). For each market segment, a weighted average of the base indication derived above and unity results in the B-F indication. This is akin to weighting the estimated ultimate loss amounts against the premium at loss cost level, which serves as the a-priori expectation of ultimate loss. For each policy year, this process is performed separately for the indication based on incurred losses and for the indication based on paid losses. Loss cost indications including the B-F adjustment are calculated separately for the non-large deductible and large deductible experience and are then weighted based on their respective net earned premiums to arrive at an increase of 1.4% in loss cost level based upon policy year 2018 case incurred loss experience (Exhibit B, Sheet 1) and an increase of 1.9% based on policy year 2018 paid loss experience (Exhibit B, Sheet 2). The policy year 2017 experience is derived similarly with an increase of 1.7% for case incurred experience and an increase of 3.6% for paid experience (Exhibit C, Sheets 1 and 2).

2. Average Experience Change

Assigning equal weights to the 1.7% increase (average of 1.4% and 1.9%) indicated by the policy year 2018 experience and the 2.7% increase (average of 1.7% and 3.6%) indicated by the policy year 2017 experience, the average effect of experience is an increase of 2.2%.

October 1, 2020 Loss Cost Filing Explanatory Memorandum Page 6 3. Trend Factor Analysis

The presentation of the loss portion of the trend factor is similar to previous years in that indicated trends are expressed in terms of average annual changes in claim costs and claim frequencies. This year’s methodology bases the indicated frequency and severities directly on the financial data of all carriers (excluding large deductible experience). In addition, the trend period is split into “historical” and “prospective” trend periods. The historical trend period is from the average accident date of the experience period (July 1, 2018) to December 31, 2019, which is the valuation date of the data underlying the filing, i.e. the latest point of known data. The prospective trend period is from January 1, 2020 to the average accident date of the prospective filing period, which is October 1, 2021. Empirically derived trend rates are used in the historical trend period, whereas index-based severity trend rates are used in the prospective trend period. To derive trend rates from empirical data, all data has been adjusted to current levels, i.e., the premiums underlying the frequency calculation are adjusted to the current loss cost level and losses are adjusted to an estimated ultimate settlement basis, as well as to the current benefit level in the same manner as previously described. Premium amounts are also adjusted to the same level of average CPAP credit and average experience rating modification factor that are expected during the prospective filing period. This adjustment ensures that the overall trend results measures pure changes in claim frequency, which may be misrepresented if this adjustment is not made. Claim counts have also been adjusted to ultimate values. It should be noted that the claim counts reported in the financial data include only lost-time claims, i.e., medical-only claim counts are not part of the analysis under this methodology. This produces a more material trend since, while medical-only cases represent over 60% of the total claims, they represent less than 4% of the losses. The inclusion of medical-only claims in a frequency and severity analysis can have a misleading effect on the final trend. The exclusion of medical-only claims results in a greater focus on medical costs on lost-time claims, which are a major cost driver in the workers’ compensation system. Exhibit EE, Sheets 1-3a (page 60-62) show the derivation of the indicated claim frequency trend and the claim cost trend for both indemnity and medical losses. Claim frequency has decreased over the past five years. The five-year exponential trend analysis resulted in an annual frequency trend of - 0.9%. This trend is used to project claim frequency for both the historical and prospective trend periods. For indemnity severity, the five-year regression resulted in an annual trend of +4.1%. This trend is used for the historical trend period. For the prospective trend period, the indemnity severity trend is indexed to the wage trend (see below) because indemnity benefits are a function of wages, and are generally expected to change at the same rate as wages over time. For medical severity, the five-year exponential regression produced the indicated annual trend of -0.2%, which is used for the historical trend period. For the prospective filing period, medical severity trend is indexed to the Chain Weighted Personal Health Care Index (“CWPHC”), which is published by the Centers for Medicare and Medicaid Services. Studies have shown that this index is an appropriate approximation of healthcare services performed in the workers’ compensation system. The CWPHC index is published on a calendar year basis, and a conversion to a policy year basis was warranted. The conversion is shown on Exhibit EE, Sheet 3b (page 63).


The determination of the wage trend from the experience period to the prospective filing period starts with actual average increase from 2018 to 2019 (+3.5%). According to the New York State Assembly’s 2020 Economic Report, average wage growth is expected to be 2.9% in 2020 and 2021. These projections, combined with the actual average wage increase 2019, result in the average annual expected wage growth from the experience period to the prospective filing period of 3.1%. This is shown on Exhibit EE, Sheet 4 (page 64). No adjustments were made to this projection to reflect the COVID-19 pandemic impact on the economy because (a) the ultimate duration and impact of the pandemic are still very much unknown, and (b) whether the pandemic will have an offsetting impact on other ratemaking measures (e.g., frequency) is also presently unknown. As can be seen on Exhibit E (page 11), combining the frequency, severity and wage trends results in an annual trend of 0.986 or -1.4% for the historical trend period and an annual trend of 0.989 or -1.1% for the prospective trend period. The combined annual trend is 0.988 or -1.2%, which represents an increase from the annual trend factor in last year’s filing. After projecting over the full trend period, the total proposed trend factor is 0.960, or -4.0%.

4. Loss Adjustment Expense

The indicated change in loss adjustment expense can be found on Exhibit F on page 12. In this filing, similar to last year, loss adjustment expense has been determined based on paid policy year and accident year Financial Call data for Defense and Cost Containment Expense (“DCCE”), and on Insurance Expense Exhibit data for Adjusting and Other Expense (“AOE”). The utilization of Financial Call data for determining DCCE provides a stable base for measuring these expenses and is the most current data available. Ratios of paid DCCE to paid loss is an accurate measure of these costs since any variability over time in reserves for either loss or DCCE does not enter the calculation of this factor. AOE continues to be based on Insurance Expense Exhibit data since it is the only data available with which to calculate this expense. For both DCCE and AOE, the effects of the historical reforms on losses have been taken into account directly in the development factors. The historical underlying policy year and accident year indemnity losses were brought to the post-reform benefit level through adjustment to the loss development factors, which are reported at pre-reform levels. Loss amounts have also been adjusted to reflect the impacts of the 2017 reform, including the revision of Schedule-Loss-of-Use impairment guidelines and the changes to the New York State Medical Fee Schedule. For AOE, ratios of indemnity to total loss were estimated for each calendar period. Similar to last year’s filing, an average of the latest three years of policy year and accident year ratios were used to determine the final DCCE provision. The use of the latest three years is considered to be responsive to the latest trends in DCCE ratios observed in both the policy year and accident year experience. For AOE, the three-year average is also selected this year to be responsive. The proposed 1.178 factor for loss adjustment expense represents a decrease of 0.1% in this provision of the loss cost.

October 1, 2020 Loss Cost Filing Explanatory Memorandum Page 8 5. Legislative and Regulatory Changes – Standard Update due to Increase in Maximum Weekly Benefits

In accordance with the 2007 legislation, the maximum weekly benefit for injured workers increased to 2/3 of the statewide average weekly wage effective July 1, 2010, indexed annually on July 1 of each subsequent year to the statewide average weekly wage published by the New York State Department of Labor. The determination of the loss cost impact resulting from the statutory benefit changes that raise the minimum or maximum weekly benefit continues to be based on a universally accepted actuarial methodology developed by Barney Fratello in a paper entitled “The Workmen’s Compensation Injury Table and Standard Wage Distribution Table – Their Development and Use in Workers’ Compensation Insurance Ratemaking”, published by the Casualty Actuarial Society. This publication, or portions thereof, has been used for over fifty years by actuaries in all jurisdictions to price the effects of changes in the maximum weekly benefit that are either proposed or enacted by their respective state legislatures. The incorporation of a state’s current statutory maximum weekly benefit, the new maximum weekly benefit, the state’s average weekly wage and the 2010 ‘Standard Actuarial Wage Distribution Table’ enable an actuary to produce an accurate estimate of the benefit cost when changes to the maximum are proposed or enacted. The actual methodology used to calculate the effects of changes in the maximum weekly benefit is a Limit Factor Analysis, as set forth in Mr. Fratello’s actuarial paper. For a better understanding of the method, the following should be especially noted:

While the methodology refers to average benefits and wage levels, these are expressed in

terms of ratios for use with the Wage Distribution Table and are not intended to be actual values.

The methodology only measures changes in the minimum and maximum benefits, or percentage that these benefits bear to an employee’s wages, and nothing more. It assumes that the current administrative functions within the workers’ compensation system and the level of disability or impairment of the injured workers that determines these benefits are at the current level.

The determination of the overall impact in New York of increasing the maximum weekly benefits as of July 1, 2020, and then on July 1, 2021 and July 1, 2022, can be found on Exhibit GG. Exhibits GG Sheets 1 through 3 (pages 65-67) display the calculation of the 2020, 2021 and 2022 benefit changes, respectively. Note that it was assumed that the average weekly wage will increase by 2.9% in 2020 and 2021 in accordance with the projections described in the discussion on wage trend above. The methodology is performed separately for each injury type [death, permanent total, permanent partial, and temporary] to recognize any variation in the maximum, as a percent of wage, that is provided for by statute. Recognition has also been given to the lower wage levels of PPD claimants and the manner of determining benefits that is used by the WCB for PPD cases. This is consistent with last year’s calculation.


Once the indicated changes are determined by injury type, these changes are applied to a distribution of incurred losses by injury type to obtain the estimated change in total indemnity costs. A five-year distribution of losses by injury type has been used to provide stability to this part of the analysis. The resultant indicated indemnity change is then weighted with the distribution of indemnity and medical losses based on 2018 policy year financial data to obtain an overall change. No utilization factor was included because it is believed that behavioral changes are more likely to occur when benefit level changes are more significant. The increases in the maximum weekly benefit, as summarized in Exhibit G (page 15) is expected to result in an increase of 1.0% in total workers’ compensation claim costs.

6. Catastrophe Provisions

In December 2019, the Terrorism Risk Insurance Program Reauthorization Act of 2019 (TRIPRA) extended the federal backstop for terrorism through December 31, 2027. In this filing, no changes to these catastrophe charges are being proposed. Consequently, the currently approved loss cost for terrorism will remain at $ .045 per $100 of payroll (3.4% of premium for per capita classes) and the current loss cost for natural disasters and catastrophic industrial accidents will remain at $ .008 per $100 of payroll (0.7% of premium for per capita classes). This is described on Exhibit H (page 16).

7. Industry Group Differentials

Industry group differentials are used to more equitably distribute the overall loss cost level change to individual employer classifications. Nine industry groups are used in this analysis and are listed below:

Food and Beverage Manufacturing Stores and Dealers-Wholesale/Retail Chemical Manufacturing Professional and Office All Other Manufacturing Services Contracting Miscellaneous Maritime, Admiralty and Federal

The industry group methodology entails a compilation of the latest five years of Unit Statistical Plan data into the nine industry groups, and utilizes loss cost ratio relativities as the basis for calculating a differential for each group relative to the statewide average (Exhibit I, Sheet 1 on page 17). The underlying base is standard premium at current loss cost level and includes payroll development. To adjust premiums from the reported historical levels to current level, an “extension of exposures” procedure is used. This procedure multiplies the reported payroll for each class on a policy by the current class loss cost, and then multiplying by the experience rating modification factor for the policy. Incurred losses have been developed to ultimate and are at the October 1, 2019 benefit level to be consistent with the classification pure premiums. The development of losses to ultimate and application of trend and excess factors were done in accordance with the methodology approved by DFS in 2015. The loss ratio relativities were calculated for each policy year and then weighted by expected losses to derive the unadjusted differential for each industry group.


Credibility for each industry group is based on the five-year total number of lost-time claims, with an industry standard of 12,000 lost-time claims as the standard for full credibility. The credibility standard is intended to enable each industry group differential to be more representative of the actual experience of the respective industry groups. Partial credibility for each group is determined by the formula (N/T)1/2, where N is the five-year total of lost-time claims for the industry group and T is 12,000 lost-time claims. The complement of credibility is the unadjusted differential for all groups combined, which is 1.00. Indicated differentials are calculated by relating each credibility-weighted industry group’s unadjusted differential to all group’s combined (1.00). As in past revisions, an additional refinement to the indicated differential is included which recognizes different wage trends by industry group (Exhibit I, Sheet 2 on page 18). The final differentials will be applied as part of the process which calculates loss costs from class pure premiums. The use of relativities by industry group provides a more refined and equitable distribution of the overall loss cost level to each class. To ensure overall balance, after the differentials are applied in the determination of class loss costs, a test of loss costs will become the final step in the process.

8. Classification Pure Premiums

Classification pure premiums are based on the experience of all carriers for the five policy years 2013 - 2017. In addition, excess losses in the layer over $500,000 per claim are excluded from the pure premium development. Consistent with past revisions, five years of experience are used to determine the proposed pure premiums for all classes. The classification experience was calculated in accordance with the methodology approved by DFS in 2015.

Complete details with respect to the classification experience are contained in a document that will be provided to DFS separately.

9. Changes in Loss Cost by Classification and Industry Group

A table showing the percentage change in loss cost level for each classification and industry group and the number of classifications for which loss costs are to be increased or decreased, as well as those to which no change will be applicable, will be provided upon approval. Loss cost changes for each classification will be limited to +/- 25% from the calculated industry group change to minimize the swings in loss cost level by class while still maintaining a proper relativity structure.

10. Total Change

The above analyses result in an indicated manual loss cost level change of -1.0%. When combined with no change in the loss cost provisions for terrorism, natural disasters, and catastrophic industrial accidents, an overall change of -1.0% is proposed.

October 1, 2020 Loss Cost Filing Explanatory Memorandum Page 11 11. Effective Date

It is proposed that the filed loss costs and related rating values, after approval by DFS, become effective for new and renewal business on and after October 1, 2020.

New York Workers’ Compensation

2020 Loss Cost Filing

List of Exhibits

Principal Exhibits Exhibit A – Summary.………………………………………………………………………………………………………. 1 Exhibit B – Determination of Policy Year 2018 Loss Cost Indication..………………………….…… 2 - 3 Exhibit C – Determination of Policy Year 2017 Loss Cost Indication.................................... 4 - 5 Exhibit D – On-Level Factors………………………………………………............................................... 6 - 10 Exhibit E – Trend Factors…………........................................................................................... 11 Exhibit F – Loss Adjustment Expense................................................................................... 12 - 14 Exhibit G – Legislative and Regulatory Changes …............................................................... 15 Exhibit H – Terrorism and Natural Catastrophes................................................................. 16 Exhibit I – Industry Group Differentials................................................................................ 17 - 18 Exhibit J – Pure Premium Multipliers………………………………………………………………………………. 18A Exhibit K – Loss Cost Level Changes by Industry Group……………………………………………………. 18B Exhibit L – Loss Cost Swing Limits by Industry Group………………………………………………………. 18C

Supporting Exhibits Exhibit AA – Test of Loss Cost Level…………………………………………………………………………………. 18D Exhibit BB – All Carriers Excl. Large Deductible Policy Year Development Factors

Sheet 1 – Premium Development Factors………………………………………….…….……….… 19 Sheets 2-3 – Case Incurred Loss Development Factors…………………….…….…………… 20 - 25 Sheets 4-5 – Paid Loss Development Factors.……………….……………….…….….……….... 26 - 31 Sheet 6 – Case Incurred Tail Factors……………..…………….………………….………………….. 32 - 36 Sheet 7 – Paid Tail Factors.………………………………….………………….……………..…………… 37

Exhibit CC - Large Deductible Experience Policy Year Development Factors Sheet 1 – Premium Development Factors…………………............................................ 38 Sheets 2-3 – Case Incurred Loss Development Factors……………............................. 39 - 49 Sheets 4-5 – Paid Loss Development Factors.......................................................... 50 - 59

Exhibit EE – Trend Analysis………......................................................................................... 60 - 64 Exhibit GG – Benefits ………………......................................................................................... 65 – 67

October 2020 Loss Cost RevisionExhibit A

2 Policy Years

1. Loss Cost Change Indicated by Policy Year 2018 Experience (Exhibit B)a. Incurred B-F 1.014b. Paid B-F 1.019

2. Loss Cost Change Indicated by Policy Year 2017 Experience (Exhibit C)a. Incurred B-F 1.017b. Paid B-F 1.036

3. Average Loss Cost Change Indicated by Experience [(1a) + (1b) + (2a) + (2b)] / 4 1.022

4. Projected Change in Loss Costs (Exhibit E) 0.960

5. Change in Loss Adjustment Expenses (Exhibit F) 0.999

6. Indicated Change in Loss Costs Based on Experience 0.980[(3) x (4) x (5)]

7. Legislative and Regulatory Changes (Exhibit G) 1.010

8 Indicated Total Loss Cost Change 0.990[(6) x (7)]

9. Change in Terrorism Provision (Exhibit H) 1.000

10. Terrorism Provision Loss Cost as Percent of Total Loss Costs 0.028

11. Change in Provision for Natural Disasters and Industrial Cats. (Exhibit H) 1.000

12. Natural Disasters and Industrial Cats. Provision Loss Cost as Percent of Total Loss Costs 0.006

13. Total Proposed Premium Level Change 0.990[(8) x (1.0 - (10) - (12)) + (9) x (10) + (11) x (12)]

Workers' Compensation - New York

General Loss Cost Revision - October 1, 2020

Summary - All Elements

Page 1

October 2020 Loss Cost RevisionExhibit B

Sheet 1

To Adjusted Excl. Lge. Ded. Lge. Ded.Valued as of 9/30/2020 Development Data Loss Cost Loss Cost12/31/2019 Levels # Factors * (1) x (2) x (3) Change Change

(1) (2) (3) (4) (5) (6)

1. Expected Total Losses**a. Excl. Large Ded. 4,497,899,110 0.809 1.010 3,675,188,384b. Large Deductible 2,496,001,652 0.809 1.011 2,041,477,255

2. Case Basis Indemnity Lossesa. Excl. Large Ded. 868,686,232 1.007 2.378 2,080,196,011 0.566 ------b. Large Deductible 485,019,496 1.007 2.825 1,379,771,337 ------ 0.676

3. Case Basis Medical Lossesa. Excl. Large Ded. 618,050,088 1.074 1.640 1,088,608,703 0.296 ------b. Large Deductible 324,139,853 1.074 2.008 699,037,414 ------ 0.342

4. % Reported - Total Case Basis Indemnity and Medical Lossesa. Excl. Large Ded. 48%b. Large Deductible 40%

5. Indicated Change in Indemnity & Medical Loss Costs 0.862 1.018Col.(5) = (2a) + (3a); Col. (6) = (2b) + (3b)

6. Loss Cost Change, incl. Loss Adjustment Expense (B-F) 1.008 1.080Col.(5) = (5) x 1.179 x (4a) + [1.0 - (4a)]; Col.(6) = (5) x 1.179 x (4b) + [1.0 - (4b)]

7. Weights Based on Net Earned Premium 0.912 0.088

8. Final Policy Year 2018 Loss Cost Indication 1.014 [Col (5), (6)*(7)] + [Col (6), (6)*(7)]

# See Exhibit D.

* Development Factors are from Exhibit BB for All Carriers; Exhibit CC for Large Deductible.

** Expected Losses Represent Standard Premium at NYCIRB DSR (loss cost) Level.


Determination of Change in Manual Loss Cost Level

Experience of All Carriers - Paid + Case

Policy Year 2018 Experience

Page 2

October 2020 Loss Cost RevisionExhibit B

Sheet 2


(1) (2) (3) (4) (5) (6)


2. Paid Basis Indemnity Lossesa. Excl. Large Ded. 293,068,903 1.007 7.428 2,192,154,222 0.596 ------b. Large Deductible 213,461,322 1.007 7.512 1,614,746,101 ------ 0.791

3. Paid Basis Medical Lossesa. Excl. Large Ded. 317,121,156 1.074 3.424 1,166,173,728 0.317 ------b. Large Deductible 188,651,743 1.074 3.851 780,258,704 ------ 0.382

4. % Paid - Total Paid Basis Indemnity and Medical Lossesa. Excl. Large Ded. 19%b. Large Deductible 17%





# See Exhibit D.





Experience of All Carriers - Paid


Page 3

October 2020 Loss Cost RevisionExhibit C

Sheet 1


(1) (2) (3) (4) (5) (6)


2. Case Basis Indemnity Lossesa. Excl. Large Ded. 1,170,141,875 0.992 1.636 1,899,037,291 0.538 ------b. Large Deductible 685,465,724 0.992 1.850 1,257,966,697 ------ 0.672

3. Case Basis Medical Lossesa. Excl. Large Ded. 732,963,895 1.106 1.386 1,123,572,082 0.319 ------b. Large Deductible 388,682,580 1.106 1.600 687,812,694 ------ 0.367

4. % Reported - Total Case Basis Indemnity and Medical Lossesa. Excl. Large Ded. 65%b. Large Deductible 57%





# See Exhibit D.





Experience of All Carriers - Paid + Case


Page 4

October 2020 Loss Cost RevisionExhibit C

Sheet 2


(1) (2) (3) (4) (5) (6)


2. Paid Basis Indemnity Lossesa. Excl. Large Ded. 599,551,944 0.992 3.504 2,084,023,372 0.591 ------b. Large Deductible 402,552,932 0.992 3.545 1,415,633,743 ------ 0.756

3. Paid Basis Medical Lossesa. Excl. Large Ded. 467,439,986 1.106 2.268 1,172,530,200 0.332 ------b. Large Deductible 264,267,180 1.106 2.499 730,406,473 ------ 0.390

4. % Paid - Total Paid Basis Indemnity and Medical Lossesa. Excl. Large Ded. 34%b. Large Deductible 32%





# See Exhibit D.





Experience of All Carriers - Paid


Page 5

October 2020 Loss Cost RevisionExhibit DSheet 1A

Section A - Factor Adjusting 2017 Policy Year Loss Costs to Present Level

(1) (2) (3) (4) (5) (6) (7)

Rate Adj. Factor Off-balance Premium Level Cumulative Product Cumulative Index/ Adjustment Adjustment

Date Change Index Weight (2)x(3) Sum Column (4) Factor* Factor

NR 10/01/16 Base 1.000 0.800 0.800 0.760 0.997 0.758NR 10/01/17 0.954 0.954 0.200 0.191NR 10/01/18 0.879 0.839 0.000 0.000NR 10/01/19 0.897 0.753

0.991

Section B - Factor Adjusting 2018 Policy Year Loss Costs to Present Level

(1) (2) (3) (4) (5) (6) (7)

Rate Adj. Factor Off-balance Premium Level Cumulative Product Cumulative Index/ Adjustment Adjustment

Date Change Index Weight (2)x(3) Sum Column (4) Factor* Factor

NR 10/01/17 Base 1.000 0.800 0.800 0.807 1.002 0.809NR 10/01/18 0.879 0.879 0.200 0.176NR 10/01/19 0.897 0.788 0.000 0.000

0.976

NR: New and renewal business.* From Column (7) on Sheet 1B, Exhibit D

Determination of On-level Factors


Page 6

October 2020 Loss Cost RevisionExhibit DSheet 1B

Section B1 - Premium Off-balance Adjustment Factor

(1) (2) (3) (4) (5) (6) = (10) (7) = (5)/(4)*(6)Targeted

Average Average Average Weighted Targeted CPAP Policy YearIntrastate Interstate Merit Rating Experience Experience Off-balance Off-balance

Rating Year Mod Mod Factor Off-balance Off-balance* Adjustment Factor Adjustment Factor

2014 0.976 0.867 0.934 0.947 0.936 1.000 0.9892015 0.968 0.869 0.931 0.943 0.936 1.000 0.9922016 0.965 0.874 0.930 0.942 0.936 1.000 0.9942017 0.965 0.867 0.929 0.939 0.936 1.000 0.9972018 0.955 0.867 0.931 0.935 0.936 1.001 1.002

* Based on a target intrastate mod of 0.960 and expected results for the average interstate mod, merit rating factor and weights for each category.

(8) (9) (10) = [1.0 + (9)]/[1.0 + (8)]Targeted

Targeted CPAPAverage CPAP Off-balance

Rating Year CPAP Credit Credit** Adjustment Factor

2014 -0.5% -0.5% 1.000 2015 -0.5% -0.5% 1.000 2016 -0.5% -0.5% 1.000 2017 -0.5% -0.5% 1.000 2018 -0.6% -0.5% 1.001

** Target Construction Premium Adjustment Program (CPAP) credit is derived using all Industry Groups.



Page 7

October 2020 Loss Cost RevisionExhibit DSheet 1C

(A) (B) (C) (D)Rating Year Rating Year Experience 10/1/2019 Currently 10/1/2020

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Period Target Achieved Target(1) Intrastate Mod 0.943 0.945 0.951 0.957 0.976 0.968 0.965 0.965 0.955 0.940 0.960 0.962 0.947 0.960(2) Interstate Mod 0.875 0.884 0.872 0.868 0.867 0.869 0.874 0.867 0.867 0.870 0.867 0.869 0.869(3) Intrastate% 59.9% 62.5% 62.0% 64.1% 64.1% 64.8% 64.8% 62.6% 63.4% 61.5% 63.0% 62.3% 62.5%(4) Interstate% 40.1% 37.5% 38.0% 35.9% 35.9% 35.2% 35.2% 37.4% 36.6% 38.5% 37.0% 37.7% 37.5%(5) Combined Mod (Experience Rated Risk only) 0.916 0.922 0.921 0.925 0.937 0.933 0.933 0.928 0.923 0.913 0.926 0.918 0.926(6) Experience Rated % 77.2% 79.5% 79.4% 79.9% 81.4% 82.0% 84.2% 82.4% 82.0% 82.0% 82.2% 82.0% 82.6%(7) Merit Rated Mod 0.933 0.934 0.933 0.933 0.934 0.931 0.930 0.929 0.931 0.931 0.930 0.931 0.930(8) Merit Rated % 2.6% 2.7% 2.7% 2.8% 2.7% 2.6% 2.5% 2.4% 2.6% 2.6% 2.5% 2.6% 2.5%(9) Rated % 79.8% 82.2% 82.1% 82.7% 84.1% 84.6% 86.7% 84.8% 84.6% 84.6% 84.7% 84.6% 85.2%

(10) Off-Balance 0.933 0.936 0.935 0.938 0.947 0.943 0.942 0.939 0.935 0.927 0.937 0.931 0.9360.915 0.934 0.936 0.935 0.939 0.948 0.945 0.946 0.945

Row Description: Off-Balance Impact for Experience Period: 0.999(1) Average mod for risks whose exposure is in New York.(2) Average mod for risks whose exposure is in New York and other states.(3) Intrastate % = Intrastate Expected Losses / ( Intrastate Expected Losses + Interstate Expected Losses)(4) Interstate % = 1 - Intrastate%(5) Combined Mod = Intrastate Mod x Intrastate % + Interstate Mod x Interstate%(6) Experience Rated % = Experience Rated Premium / Total Premium(7) Average mod for Merit Rated risks, which are too small to be eligible for experience rating(8) Merit Rated % = Merit Rated Premium / Total Premium(9) Rated % = Experience Rated % + Merit Rated %

(10) Off-Balance = Combined Mod x Experience Rated % + Merit Rated Mod x Merit Rated% + (1 - Rated %)

Column Description:(A) Experience Period is the years used for a loss cost filing. For October 1, 2020 filing, policy years 2017 and 2018 are used.(B) Target Intrastate Mod for the October 1, 2019 filing(C) Intrastate and Interstate Mod is based on mods from the rating period of 3/1/2019 to 2/29/2020, using currently approved ELRs and D-ratios.(D) Target Mod(s) for the October 1, 2020 filing

Off-Balance Analysis and Target Mod Selection

Page 8

October 2020 Loss Cost RevisionExhibit D

Sheet 2Workers' Compensation - New York

Section C - Factor Adjusting 2017 Policy Year Indemnity Losses to Present Benefit Level

(1) (2) (3) (4) (5)

Benefit Adj. FactorLevel Cumulative Product Cumulative Index/

Date Change Index Weight (2)x(3) Sum Column (4)

07/01/16 Base 1.000 0.037 0.037 0.99204/10/17 0.9730 0.973 0.086 0.08407/01/17 1.0033 0.976 0.377 0.36801/01/18 0.9562 0.933 0.373 0.34807/01/18 1.0099 0.942 0.127 0.12007/01/19 1.0077 0.949

0.957

Loss On-level Factor 0.992

Section D - Factor Adjusting 2018 Policy Year Indemnity Losses to Present Benefit Level

(1) (2) (3) (4) (5)



07/01/17 Base 1.000 0.000 1.00701/01/18 0.9562 0.956 0.123 0.11807/01/18 1.0099 0.965 0.750 0.72407/01/19 1.0077 0.972 0.127 0.123

0.965



Page 9

October 2020 Loss Cost RevisionExhibit D

Sheet 3

Section E - Factor Adjusting 2017 Policy Year Medical Losses to Present Benefit Level

(1) (2) (3) (4) (5)



01/01/14 Base 1.000 1.000 1.000 1.10604/01/19 1.106 1.106 0.000 0.000

1.000


Section F - Factor Adjusting 2018 Policy Year Medical Losses to Present Benefit Level

(1) (2) (3) (4) (5)



01/01/14 Base 1.000 0.716 0.716 1.07404/01/19 1.106 1.106 0.284 0.314

1.030




Page 10

October 2020 Loss Cost RevisionExhibit E

(A) Indicated Annual Loss Trend (See Exhibit EE)(1) Selected Indemnity Claim Cost Trend 1.041 (2) Selected Indemnity Claim Frequency Trend 0.991 (3) Indemnity Loss Trend [(1) x (2)] 1.032 (4) Selected Medical Claim Cost Trend 0.998 (5) Selected Medical Claim Frequency Trend 0.991 (6) Medical Loss Trend [(4) x (5)] 0.989 (7) Indemnity Weight* 0.660 (8) Medical Weight* 0.340 (9) Indicated Annual Loss Trend [(3)x(7) + (6)x(8)] 1.017

(B) Prospective Annual Loss Trend(1) Selected Indemnity Claim Cost Trend (See (C)) 1.031 (2) Selected Indemnity Claim Frequency Trend (From A(2)) 0.991 (3) Indemnity Loss Trend [(1) x (2)] 1.022 (4) Selected Medical Claim Cost Trend (See Exhibit EE) 1.025 (5) Selected Medical Claim Frequency Trend (From A(5)) 0.991 (6) Medical Loss Trend [(4) x (5)] 1.016 (7) Indemnity Weight* 0.660 (8) Medical Weight* 0.340 (9) Indicated Prospective Annual Loss Trend [(3)x(7) + (6)x(8)] 1.020

(C) Annual Wage Trend (See Exhibit EE) 1.031

(D) Historical Annual Loss/Wage Trend (A9) / (C) 0.986

(E) Prospective Annual Loss/Wage Trend (B9) / (C) 0.989

(F) Trended to Average Accident Date [(D)^1.5]*[(E)^1.75] 0.960

(G) Final Indicated Loss/Wage Trend Factor 0.960

(H) Selected Loss/Wage Trend Factor 0.960

* Policy Year 2018 Adjusted Ultimate Losses - See Exhibit B


Determination of Trend Factor

Average Annual Change

Page 11

October 2020 Loss Cost RevisionExhibit FSheet 1

Paid DCCE Ultimate Paid DCCE Paid DCCE Ultimate Paid. DCCEPY DCCE Factor to Ult. DCCE @ Ult Indem.+ Med. Loss * Ratio to Loss AY DCCE Factor to Ult. DCCE @ Ult Indem.+ Med. Loss * Ratio to Loss

2009 122,075,349 1.187 144,903,439 1,885,551,095 0.077 2010 124,419,140 1.205 149,925,064 1,907,814,753 0.0792010 123,208,675 1.217 149,944,957 1,921,132,256 0.078 2011 121,913,957 1.238 150,929,479 1,898,056,161 0.0802011 118,326,553 1.250 147,908,191 1,841,279,579 0.080 2012 110,018,430 1.276 140,383,517 1,649,375,029 0.0852012 105,761,724 1.293 136,749,909 1,555,084,408 0.088 2013 104,758,130 1.324 138,699,764 1,551,734,340 0.0892013 107,467,979 1.349 144,974,304 1,559,409,130 0.093 2014 107,791,244 1.392 150,045,412 1,462,795,209 0.1032014 107,179,469 1.431 153,373,820 1,486,063,721 0.103 2015 105,721,861 1.494 157,948,460 1,542,361,118 0.1022015 98,236,360 1.558 153,052,249 1,539,060,913 0.099 2016 94,695,545 1.672 158,330,951 1,589,438,795 0.1002016 92,033,887 1.799 165,568,963 1,639,800,915 0.101 2017 87,070,619 2.035 177,188,710 1,667,800,387 0.1062017 63,973,803 2.335 149,378,830 1,479,227,737 0.101 2018 51,467,315 2.993 154,041,674 1,551,227,142 0.0992018 37,969,903 4.166 158,182,616 1,596,185,641 0.099 2019 16,626,170 9.548 158,746,671 1,656,726,683 0.096

Source: New York Financial Data Calls Source: New York Financial Data Calls* Losses are adjusted to the current benefit level. 10 Year Average 0.092 * Losses are adjusted to the current benefit level. 10 Year Average 0.094

5 Year Average 0.101 5 Year Average 0.101

3 Year Average 0.100 3 Year Average 0.100

Adjustments for Excluding the Large Deductibles Inc. AOECY Incurred Losses AOE Incurred Adj. to AOE Adj. to Loss Ratio to Loss *

(1) (2) (3) (4) (5)

2010 20,487,721,000 1,858,147,000 0.007 0.68 0.066 Final DCCE 0.1002011 20,603,656,000 1,768,629,000 0.005 0.69 0.063 (3 yr avg PY & AY)

2012 22,434,533,000 1,607,421,000 0.005 0.69 0.053 Final AOE 0.0782013 21,177,827,000 1,897,021,000 0.004 0.70 0.066 (3 yr avg CY)

2014 20,594,756,000 1,735,275,000 0.005 0.70 0.062 Total LAE 0.1782015 20,712,902,000 1,752,545,000 0.008 0.70 0.0652016 20,110,050,000 1,915,488,000 0.009 0.70 0.073 Current LAE 0.1792017 18,800,424,092 1,780,633,373 0.010 0.70 0.0732018 15,833,639,000 1,581,357,000 0.010 0.70 0.077 Change in LAE 0.9992019 16,405,842,000 1,788,177,000 0.010 0.70 0.083

Source: Insurance Expense Exhibit* (5) = {(2)/(1)+(3)} x (4) 10 Year Average 0.068

5 Year Average 0.074



Loss Adjustment Expense Analysis (Private Carrier Experience)

Adjusting and Other Expenses Incurred

Paid Defense & Cost Containment Expense by Policy Year @12/19 Paid Defense & Cost Containment Expense by Accident Year @12/19

Page 12


2020 Filing YearPaid Paid

PY ALAE @ 12/19 ALAE DF to Ult. ALAE @ Ult Ind Losses Ind to Ult. Ind Onlevel Med Losses Med to Ult. Med Onlevel Ult Ind+Med Loss * ALAE Ratio2009 122,075,349 1.187 144,903,439 749,940,895 1.335 1.129 468,255,066 1.394 1.157 1,885,551,095 0.0772010 123,208,675 1.217 149,944,957 786,275,461 1.366 1.061 470,381,744 1.425 1.166 1,921,132,256 0.0782011 118,326,553 1.250 147,908,191 748,016,238 1.404 1.042 435,714,208 1.459 1.175 1,841,279,579 0.0802012 105,761,724 1.293 136,749,909 608,529,111 1.452 1.033 362,997,292 1.506 1.175 1,555,084,408 0.0882013 107,467,979 1.349 144,974,304 614,397,966 1.519 0.993 355,609,641 1.562 1.139 1,559,409,130 0.0932014 107,179,469 1.431 153,373,820 567,476,920 1.644 0.961 325,605,552 1.637 1.106 1,486,063,721 0.1032015 98,236,360 1.558 153,052,249 525,453,820 1.853 0.956 313,714,998 1.753 1.106 1,539,060,913 0.0992016 92,033,887 1.799 165,568,963 463,614,965 2.255 0.964 292,583,410 1.953 1.106 1,639,800,915 0.1012017 63,973,803 2.335 149,378,830 272,739,789 3.301 0.997 223,966,007 2.348 1.106 1,479,227,737 0.1012018 37,969,903 4.166 158,182,616 138,073,295 7.084 1.010 160,085,106 3.538 1.074 1,596,185,641 0.099

Total 976,233,702 1,504,037,278 3,408,913,024 16,502,795,396



Latest 5 yr Wt. Avg 0.101


* Losses are adjusted to the current benefit level.


Loss Adjustment Expense - Paid Analysis

Policy Year

Page 13


2020 Filing YearPaid Paid

AY ALAE @ 12/19 ALAE DF to Ult. ALAE @ Ult Ind Losses Ind to Ult. Ind Onlevel Med Losses Med to Ult. Med Onlevel Ult Ind+Med Loss * ALAE Ratio2010 124,419,140 1.205 149,925,064 780,090,259 1.338 1.093 473,047,013 1.405 1.154 1,907,814,753 0.0792011 121,913,957 1.238 150,929,479 776,094,536 1.373 1.047 462,730,446 1.439 1.175 1,898,056,161 0.0802012 110,018,430 1.276 140,383,517 667,612,789 1.416 1.037 384,477,280 1.481 1.175 1,649,375,029 0.0852013 104,758,130 1.324 138,699,764 599,930,457 1.471 1.029 357,327,007 1.533 1.175 1,551,734,340 0.0892014 107,791,244 1.392 150,045,412 588,300,380 1.559 0.963 328,747,409 1.594 1.106 1,462,795,209 0.1032015 105,721,861 1.494 157,948,460 563,835,367 1.718 0.960 327,464,261 1.691 1.106 1,542,361,118 0.1022016 94,695,545 1.672 158,330,951 497,448,194 2.015 0.960 307,686,387 1.843 1.106 1,589,438,795 0.1002017 87,070,619 2.035 177,188,710 391,189,043 2.670 0.971 277,843,132 2.127 1.106 1,667,800,387 0.1062018 51,467,315 2.993 154,041,674 195,344,311 4.825 1.016 193,691,136 2.771 1.106 1,551,227,142 0.0992019 16,626,170 9.548 158,746,671 65,630,782 15.503 1.013 91,808,535 6.659 1.024 1,656,726,683 0.096

Total 924,482,411 1,536,239,701 3,204,822,606 16,477,329,617




* Losses are adjusted to the current benefit level. Latest 3 yr Wt. Avg 0.100


Loss Adjustment Expense - Paid Analysis

Accident Year

Page 14

October 2020 Loss Cost RevisionExhibit G

Sheet 1

Proposed Weight in FilingDate Max. Benefit Actual % Cumulative Impact Effective Period Filing Impact(1) (2) (3) (4) (5) (6)

[(4)-1]x(5)

July 1, 2020 $967 0.6% 1.006 0.281 0.2%

July 1, 2021 $995 0.5% 1.011 0.688 0.8%July 1, 2022 $1,024 0.5% 1.016 0.031 0.0%

Total Filing Impact 1.0%Last Year Impact 0.9%


Proposed Maximum Weekly Benefit Changes

Estimated Increase in Cost

Page 15

October 2020 Loss Cost Revision

Filing Exhibit H

Workers Compensation - New York

Terrorism and Catastrophe Charges

In this filing, no changes to these catastrophe charges are being proposed. Consequently, the

currently approved loss cost for terrorism will remain at $ .045 per $100 of payroll (3.4% of premium

for per capita classes) and the current loss cost for natural disasters and catastrophic industrial

accidents will remain at $ .008 per $100 of payroll (0.7% of premium for per capita classes).

Page 16

October 2020 Loss Cost RevisionExhibit ISheet 1

Number of Differential FinalPolicy Expected Incurred USP Loss Loss Ratio Lost Time Unadjusted Group Cred. Wt'd Adjustment Ind. Group

Industry Group Year Losses Losses on Ratio Relativity Cases Differential Credibility Differential Factor Differential

2013 $99,731,126 $99,575,566 0.998 0.986 1,3932014 $111,276,616 $105,219,361 0.946 0.945 1,477

Food&Bev Mfg. 2015 $114,830,095 $111,461,079 0.971 0.966 1,4522016 $115,085,696 $133,858,282 1.163 1.137 1,4862017 $123,159,825 $136,315,636 1.107 1.057 1,495

Total $564,083,359 $586,429,924 1.040 1.021 7,303 1.020 0.780 1.016 0.997 1.013

2013 $31,459,752 $33,519,033 1.065 1.052 4542014 $32,172,586 $38,706,531 1.203 1.203 429

Chemical Mfg. 2015 $35,702,293 $34,720,157 0.972 0.968 4402016 $35,218,917 $32,481,658 0.922 0.902 4082017 $37,542,525 $40,769,531 1.086 1.037 416

Total $172,096,074 $180,196,910 1.047 1.028 2,147 1.029 0.423 1.012 1.009 1.021

2013 $262,268,990 $273,573,884 1.043 1.030 3,7002014 $279,844,074 $278,391,828 0.995 0.994 3,690

All Other Mfg. 2015 $289,361,827 $286,012,002 0.988 0.984 3,5622016 $280,532,111 $273,367,162 0.974 0.953 3,2642017 $285,286,120 $297,840,898 1.044 0.997 3,157

Total $1,397,293,122 $1,409,185,774 1.009 0.990 17,373 0.991 1.000 0.991 1.003 0.995

2013 $1,049,444,700 $1,019,169,895 0.971 0.959 7,2482014 $1,136,512,637 $1,126,763,813 0.991 0.991 7,276

Contracting 2015 $1,283,263,895 $1,375,580,301 1.072 1.067 7,8952016 $1,369,092,083 $1,421,432,813 1.038 1.015 7,6762017 $1,447,809,631 $1,489,075,653 1.029 0.982 7,606

Total $6,286,122,946 $6,432,022,475 1.023 1.005 37,701 1.004 1.000 1.004 0.997 1.002

2013 $405,477,687 $421,497,106 1.040 1.027 6,4452014 $444,697,133 $443,519,630 0.997 0.997 6,758

Stores&Dealers 2015 $450,576,407 $445,809,252 0.989 0.985 6,5352016 $482,358,404 $501,294,741 1.039 1.016 6,8942017 $490,345,376 $549,868,927 1.121 1.070 6,506

Total $2,273,455,008 $2,361,989,656 1.039 1.020 33,138 1.020 1.000 1.020 1.000 1.020

2013 $716,225,133 $737,811,179 1.030 1.017 9,5452014 $768,745,372 $776,585,549 1.010 1.010 9,701

Prof&Office 2015 $774,577,244 $742,877,831 0.959 0.955 9,2352016 $814,045,524 $808,176,523 0.993 0.971 9,3172017 $843,308,050 $827,028,421 0.981 0.936 8,716

Total $3,916,901,323 $3,892,479,503 0.994 0.976 46,514 0.976 1.000 0.976 1.001 0.978

2013 $1,563,222,385 $1,608,187,257 1.029 1.016 20,9572014 $1,657,620,260 $1,641,507,954 0.990 0.990 20,749

Services 2015 $1,721,286,921 $1,681,874,980 0.977 0.973 20,7552016 $1,782,617,334 $1,817,751,963 1.020 0.997 21,2862017 $1,880,116,393 $1,980,293,261 1.053 1.005 21,331

Total $8,604,863,292 $8,729,615,415 1.014 0.996 105,078 0.996 1.000 0.996 1.001 0.997

2013 $303,768,181 $293,788,770 0.967 0.955 4,1022014 $321,145,041 $346,418,345 1.079 1.078 4,335

Miscellaneous 2015 $347,506,532 $359,295,628 1.034 1.029 4,6982016 $367,255,873 $375,928,986 1.024 1.001 4,5482017 $369,716,981 $419,525,281 1.135 1.083 4,239

Total $1,709,392,609 $1,794,957,010 1.050 1.031 21,922 1.031 1.000 1.031 0.999 1.030

2013 $9,492,742 $9,781,284 1.030 1.018 962014 $9,656,234 $6,685,149 0.692 0.692 89

Mar,Adm, Fed 2015 $10,078,136 $11,224,985 1.114 1.109 932016 $9,350,656 $10,172,245 1.088 1.064 832017 $10,162,308 $8,041,375 0.791 0.755 91

Total $48,740,075 $45,905,038 0.942 0.925 452 0.926 0.194 0.986 0.997 0.982

2013 $4,441,090,697 $4,496,903,974 1.013 1.000 53,9402014 $4,761,669,953 $4,763,798,160 1.000 1.000 54,504

All Ind Groups 2015 $5,027,183,352 $5,048,856,215 1.004 1.000 54,6652016 $5,255,556,598 $5,374,464,373 1.023 1.000 54,9622017 $5,487,447,208 $5,748,758,983 1.048 1.000 53,557

Total $24,972,947,809 $25,432,781,705 1.018 1.000 271,628 1.000 1.000 1.000 1.000 1.000

Cred. Std. 12,000


Determination of Industry Group Differentials(Incurred Losses Determined by Revised Ratemaking Methodology)

Expected Losses = Payroll x Mod x Current Loss Cost

Page 17

October 2020 Loss Cost RevisionExhibit I

Sheet 2Workers' Compensation - New York

Industry Group Differential Adjustment Factor Calculation(Incurred Losses Determined by Revised Ratemaking Methodology)

Effect of Med/IndIndustry Indemnity Medical Total Avg. Annual Wage TrendsGroup Losses Losses Losses Wage Trend On Ind. Group *

(1) (3) (4) (5) (6)

1 1.0381 0.89262 1.0202 0.92823

(2)

$377,230,177$110,333,042$891,908,356 1.0285 0.9116

4 1.0327 0.90325 1.0299 0.90876 1.0286 0.91137 1.0284 0.91168 1.0327 0.90329

$3,780,052,371$1,399,972,234$2,326,839,006$5,165,961,265$1,100,464,517

$28,429,467

$209,199,747$69,863,868

$517,277,418$2,651,970,104$962,017,422

$1,565,640,497$3,563,654,150$694,492,493$17,475,571

$586,429,924$180,196,910

$1,409,185,774$6,432,022,475$2,361,989,656$3,892,479,503$8,729,615,415$1,794,957,010

$45,905,038 1.0361 0.8964

Total $15,181,190,435 $10,251,591,270 $25,432,781,705 1.0300 0.9654

1.014(7) Annual Indemnity Trend from 10/2019 loss cost revision

(8) Annual Medical Trend from 10/2019 loss cost revision 0.987

* Effect by Group (6) = Med Loss Trend (8)^2.25 / Group Wage Trend (5)^2.25Effect for Total (6) = Ind Loss Trend (7)^2.25 / Total Wage Trend (5)^2.25

Factors to NormalizedIndustry Adjust Indicated AdjustmentGroup Differentials Factors

(9) (10) (11)

1 0.9394 0.9972 0.9510 1.0093 0.9456 1.0034 0.9397 0.9975 0.9423 1.0006 0.9436 1.0017 0.9434 1.0018 0.9413 0.9999 0.9391 0.997

Total 0.9423 1.000

Page 18

October 2020 RevisionExhibit J

Trend Underlying Loss Cost

Trend Underlying Pure Premium

Average Trend Periods

Trend Adjustment (a)

Experience Adjustment (b)

Benefit Adjustment (c)

Pure Premium Multiplier (h)

(1) (2) (3) (4) = [(1)/(2)]^(3) (5) (6) (7) = (4)x(5)x(6) x TCFIndemnity 0.9976 0.9839 5.75 1.0823 1.0220 0.9029 0.8709Medical 0.9670 0.9579 5.75 1.0559 1.0220 0.9407 0.8852

Industry Group Industry GroupIndustry Group Differential Off-Balance (g) Indemnity Medical

1.013 1.0022 0.8709 0.88521.021 1.0883 0.8709 0.88520.995 1.0421 0.8709 0.88521.002 0.9790 0.8709 0.88521.020 0.9400 0.8709 0.88520.978 1.0880 0.8709 0.88520.997 1.0013 0.8709 0.88520.997 1.0013 0.8980 0.91281.030 0.9179 0.8709 0.8852

1 - Food & Beverage Manufacturing2 - Chemical Manufacturing3 - All Other Manufacturing4 - Contracting5 - Stores & Dealers6 - Professional & Office7 - Services - All Other

- Servants Per Capita (d)8 - Miscellaneous9 - Maritime, Admiralty & Federal - N.Y. 0.982 0.8772 0.8709 0.8852

- U.S.(e) 0.982 0.8772 1.0978 1.0541

Manual Loss Cost = { (Final Pure Premiums x Pure Premium Multipliers) x (1+LAE/Loss ) of 0.178 x (f) x Industry Group Differentials x Industry Group off-Balance (g)}, Subject to the swing limits of +/- 25% of the industry group change.

(a) Column (4): Removes the trend included in the pure premium (PP), and includes the indicated trends based on the latest financial data.(b) Column (5): Adjusts the loss experience from underlying the PP to the loss experience underlying the new loss cost filing.(c) Column (6): Adjusts the benefit level from the PP level to the benefit level as approved in the loss cost filing.(d) Not subject to Wage Factor of 1.031.(e) All U.S. Multipliers include a factor of 1.1202 to reflect the U.S.L. Assessment for Special Funds.(f) For classes eligible for the New York Construction Classification Premium Adjustment Program, an off-balance factor of 1.017 has been applied.

For classes subject to the Payroll Limitation Law, a factor of 1.000 has been applied.(g) Used to achieve the overall change for each industry group.(h) Multiplier includes a test correction factor (TCF) of 0.872 in order to achieve the approved loss cost indication.

Loss costs for all Maritime classes are applied with an off-balance factor of 0.9249

Pure Premium Multipliers

Pure Premium Multipliers


Page 18A

October 2020 RevisionExhibit K

Percentage Change in Manual Total Number

Industry Group Differential Loss Cost Level Decreased Increased Unchanged of Classes

1 1. Food & Beverage Mfg. 1.013 0.3% 16 8 0 242 2. Chemical Mfg. 1.021 1.1% 14 8 0 223 3. All Other Mfg. 0.995 -1.5% 127 55 2 1844 4. Contracting 1.002 -0.8% 56 30 1 875 5. Stores & Dealers 1.020 1.0% 28 16 0 446 6. Professional and Office 0.978 -2.9% 14 8 4 267 7. Services 0.997 -1.3% 49 27 2 788 8. Miscellaneous 1.030 1.9% 37 16 1 549 9. Maritime, Admiralty & Federal 0.982 -2.8% 21 17 0 38

Total 1.000 -1.0% 362 185 10 557


Changes in Classification Loss CostsBy Industry Group

Set forth below are the percentage changes in manual loss cost level for each industry group and the number of classificationsfor which loss costs were increased or decreased, as well as those for which no change was developed.

Page 18B

October 2020 RevisionExhibit L

The manual loss costs were calculated to fall within the following swing limits:

Industry Group Upper Limits * Lower Limits*

1. Food & Beverage Mfg. 25.3% -24.7%2. Chemical Mfg 26.1% -23.9%3. All Other Mfg. 23.5% -26.5%4. Contracting 24.2% -25.8%5. Stores & Dealers 26.0% -24.0%6. Professional and Office 21.8% -28.2%7. Services 23.7% -26.3%8. Miscellaneous 27.0% -23.0%9. Maritime, Admiralty & Federal 22.2% -27.8%

* Upper and lower limits are +/-25% of the respective industry group change as shown in Exhibit K.

The classifications which have been limited are listed below:

2923

8901

70247047


Swing Limits in Classification Loss Costs By Industry Group

Note: Limits do not apply to the classifications to be discontinued, which are subject to a loss cost transitional program.

Limited by Upper Swing Limited by Lower Swing

09120913

684368827016

7364

Page 18C

October 2020 RevisionExhibit AA


Loss Cost Level Test *

Excluding the Experience of Self-Insured Risks

Loss CostLevel Change

Industry Group (3)/(2) (1) (4)

1 Food & Beverage Mfg. 1.0032 Chemical Mfg 1.0113 All Other Mfg. 0.9854 Contracting 0.9925 Stores & Dealers 1.0106 Professional and Office 0.9717 Services 0.9878 Miscellaneous 1.0199 Maritime, Admiralty & Federal 0.972

A. Total Loss Cost Change

Premium at 10/1/2019 Loss Costs

(2)

$136,953,960$43,071,086

$326,118,398$1,524,229,783

$497,964,956$969,573,519

$2,000,607,599$372,990,753

$10,502,949

$5,882,013,002

Premium at 10/1/2020 Loss Costs

(3)

$137,333,113$43,565,941

$321,260,424$1,512,180,306

$503,154,192$941,022,414

$1,974,090,268$380,210,423

$10,210,760

$5,823,027,840 0.990

B. Change in Terrorism Provisions (Exhibit H) 1.000

C. Change in Natural Disasters and Industrial Cats 1.000

D. Overall Change(A) x 0.966 + (B) x 0.028 + (C) x 0.006 0.990

* Based on Policy Year 2017 New York Statistical Plan Experience.Page 18D


Exhibit BB

Sheet 1

Policy

Year 1st Report 2nd Report 3rd Report 4th Report 5th Report 6th Report

2009 Dev. 5/6 2,430,335,310 2,431,037,681 1.000

2010 Dev. 5/6 2,645,371,951 2,645,710,075 1.000

2011 Dev. 5/6 2,942,889,361 2,942,080,928 1.000

2012 Dev. 5/6 2,967,014,693 2,965,653,176 1.000

2013 Dev. 5/6 3,196,100,348 3,197,948,112 1.001

2010 Dev. 4/5 2,534,264,776 2,535,382,606 1.000

2011 Dev. 4/5 2,974,089,679 2,973,709,500 1.000

2012 Dev. 4/5 3,080,425,439 3,075,785,134 0.998

2013 Dev. 4/5 3,201,605,684 3,200,181,388 1.000

2014 Dev. 4/5 3,429,292,276 3,427,614,080 1.000

2011 Dev. 3/4 2,832,553,303 2,826,085,386 0.998

2012 Dev. 3/4 3,116,720,709 3,116,459,620 1.000

2013 Dev. 3/4 3,361,481,753 3,357,092,717 0.999

2014 Dev. 3/4 3,445,786,105 3,440,027,003 0.998

2015 Dev. 3/4 3,498,864,607 3,494,874,647 0.999

2012 Dev. 2/3 3,162,340,701 3,154,040,428 0.997

2013 Dev. 2/3 3,412,044,797 3,402,093,931 0.997

2014 Dev. 2/3 3,704,507,567 3,695,786,213 0.998

2015 Dev. 2/3 3,513,303,960 3,504,437,774 0.997

2016 Dev. 2/3 3,891,947,988 3,889,216,255 0.999

2013 Dev. 1/2 3,420,626,165 3,447,163,219 1.008

2014 Dev. 1/2 3,726,788,980 3,760,935,495 1.009

2015 Dev. 1/2 3,815,980,118 3,846,583,539 1.008

2016 Dev. 1/2 3,837,170,986 3,899,247,931 1.016

2017 Dev. 1/2 4,220,580,770 4,311,785,366 1.022

1st/Ult. 2nd/Ult. 3rd/Ult. 4th/Ult. 5th/Ult. 6th/Ult.

Implied Premium Ult Development* 1.010 0.996 0.998 0.999 1.000 1.000

*Derived using Private Carriers and SIF separate premium development patterns


Development Factors - Premiums

All Carriers Excluding Large Deductible Experience

Page 19


Exhibit BB

Sheet 2A

Policy Implied

Year 1st Report 2nd Report 3rd Report 4th Report 5th Report 6th Report 7th Report 8th Report 9th Report 10th Report Adjusted LDF

2005 Dev. 9/10 1,093,400,787 1,100,301,303 1.006 1.016

2006 Dev. 9/10 1,153,294,085 1,162,340,602 1.008 1.016

2007 Dev. 9/10 1,261,596,509 1,263,683,145 1.002 1.003

2008 Dev. 9/10 1,294,673,090 1,297,521,522 1.002 1.002

2009 Dev. 9/10 1,271,443,256 1,272,133,852 1.001 1.001

2006 Dev. 8/9 1,152,927,968 1,158,194,049 1.005 1.013

2007 Dev. 8/9 1,265,048,040 1,266,952,704 1.002 1.003

2008 Dev. 8/9 1,346,599,499 1,352,658,492 1.004 1.004

2009 Dev. 8/9 1,269,474,231 1,271,443,256 1.002 1.001

2010 Dev. 8/9 1,364,349,988 1,358,901,219 0.996 0.996

2007 Dev. 7/8 1,271,201,998 1,272,737,377 1.001 1.002

2008 Dev. 7/8 1,349,295,818 1,355,051,355 1.004 1.004

2009 Dev. 7/8 1,318,161,658 1,325,369,021 1.005 1.006

2010 Dev. 7/8 1,365,204,480 1,364,521,584 0.999 1.000

2011 Dev. 7/8 1,384,164,714 1,385,735,650 1.001 1.001

2008 Dev. 6/7 1,353,771,211 1,358,067,195 1.003 1.003

2009 Dev. 6/7 1,324,053,056 1,332,426,703 1.006 1.006

2010 Dev. 6/7 1,400,148,201 1,405,928,359 1.004 1.004

2011 Dev. 6/7 1,386,473,734 1,387,064,508 1.000 1.001

2012 Dev. 6/7 1,326,489,715 1,314,527,386 0.991 0.991

2009 Dev. 5/6 1,320,893,678 1,335,006,683 1.011 1.011

2010 Dev. 5/6 1,405,969,825 1,415,037,177 1.006 1.006

2011 Dev. 5/6 1,412,436,910 1,420,531,631 1.006 1.006

2012 Dev. 5/6 1,327,177,734 1,329,561,409 1.002 1.002

2013 Dev. 5/6 1,441,860,188 1,453,814,693 1.008 1.009

2010 Dev. 4/5 1,380,798,363 1,423,705,724 1.031 1.031

2011 Dev. 4/5 1,352,742,733 1,425,425,663 1.054 1.054

2012 Dev. 4/5 1,316,805,187 1,369,689,029 1.040 1.040

2013 Dev. 4/5 1,405,927,768 1,443,147,358 1.026 1.027

2014 Dev. 4/5 1,358,615,959 1,367,097,557 1.006 1.006

2011 Dev. 3/4 1,279,699,072 1,369,660,426 1.070 1.071

2012 Dev. 3/4 1,237,355,614 1,329,133,739 1.074 1.075

2013 Dev. 3/4 1,359,403,044 1,474,044,816 1.084 1.084

2014 Dev. 3/4 1,284,440,524 1,363,835,023 1.062 1.062

2015 Dev. 3/4 1,203,912,175 1,278,941,588 1.062 1.062

2012 Dev. 2/3 1,053,447,877 1,251,941,202 1.188 1.189

2013 Dev. 2/3 1,143,305,081 1,374,464,460 1.202 1.202

2014 Dev. 2/3 1,167,355,568 1,397,181,902 1.197 1.197

2015 Dev. 2/3 1,026,491,095 1,206,296,959 1.175 1.175

2016 Dev. 2/3 1,042,251,834 1,221,312,404 1.172 1.172

2013 Dev. 1/2 789,481,494 1,160,245,234 1.470 1.470

2014 Dev. 1/2 812,970,905 1,187,468,306 1.461 1.461

2015 Dev. 1/2 819,165,961 1,162,351,070 1.419 1.419

2016 Dev. 1/2 719,568,326 1,043,616,653 1.450 1.450

2017 Dev. 1/2 719,047,020 1,061,225,521 1.476 1.476

Selected (Implied Adjusted)

Development 1st/Ult. 2nd/Ult. 1st/2nd 2nd/3rd 3rd/4th 4th/5th 5th/6th 6th/7th 7th/8th 8th/9th 9th/10th

5 Year Average 2.378 1.636 1.454 1.186 1.070 1.031 1.006 1.002 1.004 1.004 1.007

Loss Development to Ultimate* 2.378 1.636

*Derived using Private Carriers and SIF separate loss development patterns, after adjusting for impacts from the reforms (i.e., Duration Cap, Special Disability Fund and Re-opened Case Fund).

Note: Policy years 2000 and 2001 adjusted for losses associated with the terrorist attack of September 11, 2001.


Policy Year Development Factors - Indemnity Losses (Case Basis)


Page 20

October 2020 Loss Cost Revision October 2020 Loss Cost Revision

Exhibit BB

Sheet 2B

Policy Implied

Year 10th Report 11th Report 12th Report 13th Report 14th Report 15th Report 16th Report 17th Report 18th Report 19th Report Adjusted LDF

1996 Dev. 18/19 1,091,555,932 1,094,940,931 1.003 1.017

1997 Dev. 18/19 1,013,296,997 1,019,299,039 1.006 1.018

1998 Dev. 18/19 998,782,840 1,001,669,625 1.003 1.018

1999 Dev. 18/19 1,142,198,540 1,150,448,481 1.007 1.019

2000 Dev. 18/19 1,044,463,296 1,050,511,036 1.006 1.018

1997 Dev. 17/18 1,008,786,476 1,014,267,864 1.005 1.018

1998 Dev. 17/18 1,001,497,850 1,008,676,126 1.007 1.019

1999 Dev. 17/18 1,133,956,778 1,142,198,540 1.007 1.019

2000 Dev. 17/18 1,037,776,733 1,045,379,061 1.007 1.019

2001 Dev. 17/18 936,446,455 938,733,754 1.002 1.017

1998 Dev. 16/17 999,089,198 1,003,105,353 1.004 1.018

1999 Dev. 16/17 1,137,881,369 1,141,915,912 1.004 1.017

2000 Dev. 16/17 1,030,853,869 1,037,776,733 1.007 1.018

2001 Dev. 16/17 929,462,621 936,449,567 1.008 1.019

2002 Dev. 16/17 964,524,699 971,074,093 1.007 1.018

1999 Dev. 15/16 1,134,702,998 1,138,699,781 1.004 1.017

2000 Dev. 15/16 1,033,851,717 1,039,699,847 1.006 1.018

2001 Dev. 15/16 924,114,718 929,463,830 1.006 1.018

2002 Dev. 15/16 960,834,561 964,524,699 1.004 1.016

2003 Dev. 15/16 1,161,098,323 1,167,274,305 1.005 1.017

2000 Dev. 14/15 1,032,416,408 1,035,961,422 1.003 1.017

2001 Dev. 14/15 928,410,643 931,943,795 1.004 1.017

2002 Dev. 14/15 956,551,587 961,388,105 1.005 1.017

2003 Dev. 14/15 1,150,652,314 1,161,220,761 1.009 1.018

2004 Dev. 14/15 1,132,991,966 1,141,068,594 1.007 1.017

2001 Dev. 13/14 927,581,379 929,912,332 1.003 1.016

2002 Dev. 13/14 955,537,510 961,370,453 1.006 1.017

2003 Dev. 13/14 1,148,733,328 1,154,100,328 1.005 1.016

2004 Dev. 13/14 1,122,915,160 1,133,011,040 1.009 1.018

2005 Dev. 13/14 1,114,243,263 1,117,280,366 1.003 1.014

2002 Dev. 12/13 953,312,265 958,405,603 1.005 1.017

2003 Dev. 12/13 1,143,974,828 1,153,405,291 1.008 1.018

2004 Dev. 12/13 1,116,218,312 1,126,470,094 1.009 1.018

2005 Dev. 12/13 1,103,954,214 1,114,243,673 1.009 1.017

2006 Dev. 12/13 1,168,970,202 1,175,588,042 1.006 1.014

2003 Dev. 11/12 1,142,872,995 1,147,475,559 1.004 1.016

2004 Dev. 11/12 1,125,437,907 1,120,496,425 0.996 1.011

2005 Dev. 11/12 1,100,910,124 1,108,860,109 1.007 1.017

2006 Dev. 11/12 1,161,093,597 1,168,970,202 1.007 1.014

2007 Dev. 11/12 1,256,286,468 1,258,149,344 1.001 1.003

2004 Dev. 10/11 1,123,172,337 1,129,150,338 1.005 1.016

2005 Dev. 10/11 1,097,057,042 1,106,230,583 1.008 1.017

2006 Dev. 10/11 1,157,605,913 1,167,909,583 1.009 1.016

2007 Dev. 10/11 1,252,085,708 1,256,290,548 1.003 1.005

2008 Dev. 10/11 1,297,408,069 1,300,919,341 1.003 1.003


Development 10th/11th 11th/12th 12th/13th 13th/14th 14th/15th 15th/16th 16th/17th 17th/18th 18th/19th

5 Year Average 1.012 1.010 1.016 1.016 1.018 1.018 1.018 1.020 1.018




Page 21


Exhibit BB

Sheet 2C

Policy Implied

Year 19th Report 20th Report Adjusted LDF

1987 Dev. 27/28

1988 Dev. 27/28

1989 Dev. 27/28

1990 Dev. 27/28

1991 Dev. 27/28

1988 Dev. 26/27

1989 Dev. 26/27

1990 Dev. 26/27

1991 Dev. 26/27

1992 Dev. 26/27

1989 Dev. 25/26

1990 Dev. 25/26

1991 Dev. 25/26

1992 Dev. 25/26

1993 Dev. 25/26

1990 Dev. 24/25

1991 Dev. 24/25

1992 Dev. 24/25

1993 Dev. 24/25

1994 Dev. 24/25

1991 Dev. 23/24

1992 Dev. 23/24

1993 Dev. 23/24

1994 Dev. 23/24

1995 Dev. 23/24

1992 Dev. 22/23

1993 Dev. 22/23

1994 Dev. 22/23

1995 Dev. 22/23

1996 Dev. 22/23

1993 Dev. 21/22

1994 Dev. 21/22

1995 Dev. 21/22

1996 Dev. 21/22

1997 Dev. 21/22

1994 Dev. 20/21

1995 Dev. 20/21

1996 Dev. 20/21

1997 Dev. 20/21

1998 Dev. 20/21

1995 Dev. 19/20 1,232,249,302 1,238,572,660 1.005 1.018

1996 Dev. 19/20 1,092,412,366 1,097,011,675 1.004 1.017

1997 Dev. 19/20 1,008,236,990 1,014,119,988 1.006 1.018

1998 Dev. 19/20 1,001,669,625 1,007,978,853 1.006 1.018

1999 Dev. 19/20 1,150,105,284 1,156,237,790 1.005 1.017


Development 19th/20th 20th/Ult.*

5 Year Average 1.018 1.038

20th/Ult.* : Adjusted from Line 81 shown on Exhibit BB, Sheet 6E




Page 22


Exhibit BB

Sheet 3A

Policy Implied


2005 Dev. 9/10 722,353,937 729,539,505 1.010 1.012

2006 Dev. 9/10 746,900,394 751,638,331 1.006 1.007

2007 Dev. 9/10 867,649,033 876,366,366 1.010 1.010

2008 Dev. 9/10 849,094,514 855,542,336 1.008 1.008

2009 Dev. 9/10 849,999,796 852,775,429 1.003 1.003

2006 Dev. 8/9 744,992,191 752,092,683 1.010 1.010

2007 Dev. 8/9 869,333,102 872,061,271 1.003 1.003

2008 Dev. 8/9 874,372,957 883,238,820 1.010 1.010

2009 Dev. 8/9 851,642,386 849,999,796 0.998 0.998

2010 Dev. 8/9 845,845,367 839,661,920 0.993 0.993

2007 Dev. 7/8 873,536,937 876,588,334 1.003 1.003

2008 Dev. 7/8 875,952,391 880,993,351 1.006 1.006

2009 Dev. 7/8 880,459,434 888,775,252 1.009 1.009

2010 Dev. 7/8 836,635,632 846,084,477 1.011 1.011

2011 Dev. 7/8 839,713,445 834,665,990 0.994 0.994

2008 Dev. 6/7 870,967,552 882,805,459 1.014 1.014

2009 Dev. 6/7 881,841,494 889,603,741 1.009 1.009

2010 Dev. 6/7 848,655,643 859,885,624 1.013 1.013

2011 Dev. 6/7 837,688,502 841,264,563 1.004 1.004

2012 Dev. 6/7 797,826,271 792,789,667 0.994 0.994

2009 Dev. 5/6 876,653,825 893,116,818 1.019 1.019

2010 Dev. 5/6 846,269,340 857,356,808 1.013 1.013

2011 Dev. 5/6 852,430,764 859,105,461 1.008 1.008

2012 Dev. 5/6 790,743,917 800,211,413 1.012 1.012

2013 Dev. 5/6 843,878,237 841,514,274 0.997 0.997

2010 Dev. 4/5 836,741,681 857,890,897 1.025 1.025

2011 Dev. 4/5 843,331,430 862,794,245 1.023 1.023

2012 Dev. 4/5 805,091,395 817,658,801 1.016 1.016

2013 Dev. 4/5 830,074,949 844,622,410 1.018 1.018

2014 Dev. 4/5 772,882,504 774,751,884 1.002 1.002

2011 Dev. 3/4 810,619,939 856,667,791 1.057 1.057

2012 Dev. 3/4 774,565,462 814,819,764 1.052 1.052

2013 Dev. 3/4 812,384,578 869,748,911 1.071 1.071

2014 Dev. 3/4 734,687,476 775,959,239 1.056 1.056

2015 Dev. 3/4 697,937,043 713,732,075 1.023 1.023

2012 Dev. 2/3 731,562,193 786,035,940 1.074 1.074

2013 Dev. 2/3 742,970,473 823,494,796 1.108 1.108

2014 Dev. 2/3 732,610,307 794,959,667 1.085 1.085

2015 Dev. 2/3 652,371,682 699,146,217 1.072 1.072

2016 Dev. 2/3 627,215,517 666,233,298 1.062 1.062

2013 Dev. 1/2 650,160,787 755,231,417 1.162 1.162

2014 Dev. 1/2 638,382,307 745,751,486 1.168 1.168

2015 Dev. 1/2 620,493,775 734,777,322 1.184 1.184

2016 Dev. 1/2 535,328,062 628,732,299 1.174 1.174

2017 Dev. 1/2 545,432,790 668,139,172 1.225 1.225



5 Year Average 1.640 1.386 1.183 1.082 1.049 1.016 1.009 1.010 1.009 1.005 1.006

Loss development to ultimate* 1.640 1.386




Policy Year Development Factors - Medical Losses (Case Basis) All Carriers Excluding Large Deductible Experience

Page 23


Exhibit BB

Sheet 3B

Policy Implied


1996 Dev. 18/19 490,646,812 497,016,253 1.013 1.018

1997 Dev. 18/19 505,115,408 507,108,444 1.004 1.009

1998 Dev. 18/19 511,898,774 516,345,771 1.009 1.014

1999 Dev. 18/19 564,316,551 566,275,852 1.003 1.008

2000 Dev. 18/19 546,820,487 542,736,812 0.993 0.997

1997 Dev. 17/18 502,675,843 505,784,625 1.006 1.011

1998 Dev. 17/18 514,389,952 515,632,631 1.002 1.007

1999 Dev. 17/18 565,366,969 564,316,551 0.998 1.003

2000 Dev. 17/18 546,793,183 547,242,590 1.001 1.006

2001 Dev. 17/18 523,542,843 523,511,743 1.000 1.004

1998 Dev. 16/17 510,015,134 515,136,634 1.010 1.015

1999 Dev. 16/17 566,834,363 567,955,924 1.002 1.007

2000 Dev. 16/17 546,068,238 546,793,183 1.001 1.006

2001 Dev. 16/17 520,177,473 523,543,389 1.006 1.011

2002 Dev. 16/17 564,515,740 568,962,358 1.008 1.012

1999 Dev. 15/16 564,579,575 567,351,814 1.005 1.010

2000 Dev. 15/16 548,779,437 548,736,107 1.000 1.005

2001 Dev. 15/16 512,262,843 520,178,127 1.015 1.020

2002 Dev. 15/16 563,142,956 564,515,740 1.002 1.006

2003 Dev. 15/16 691,303,848 697,257,040 1.009 1.012

2000 Dev. 14/15 547,337,978 550,043,565 1.005 1.010

2001 Dev. 14/15 518,423,602 515,113,717 0.994 0.998

2002 Dev. 14/15 559,743,415 563,590,992 1.007 1.011

2003 Dev. 14/15 694,844,492 691,389,763 0.995 0.999

2004 Dev. 14/15 664,118,111 666,870,367 1.004 1.007

2001 Dev. 13/14 520,004,177 519,438,035 0.999 1.003

2002 Dev. 13/14 560,480,972 563,340,286 1.005 1.009

2003 Dev. 13/14 684,011,596 697,751,854 1.020 1.024

2004 Dev. 13/14 657,068,106 664,129,248 1.011 1.014

2005 Dev. 13/14 732,822,936 737,752,418 1.007 1.009

2002 Dev. 12/13 559,947,810 562,944,871 1.005 1.009

2003 Dev. 12/13 679,076,576 686,949,932 1.012 1.015

2004 Dev. 12/13 659,452,082 660,144,412 1.001 1.004

2005 Dev. 12/13 735,168,749 732,826,645 0.997 0.999

2006 Dev. 12/13 759,402,156 762,198,675 1.004 1.004

2003 Dev. 11/12 676,793,666 681,066,380 1.006 1.010

2004 Dev. 11/12 653,469,724 661,974,386 1.013 1.016

2005 Dev. 11/12 729,472,179 739,145,097 1.013 1.015

2006 Dev. 11/12 750,224,056 759,402,156 1.012 1.013

2007 Dev. 11/12 870,558,425 884,681,642 1.016 1.016

2004 Dev. 10/11 649,224,721 656,561,495 1.011 1.014

2005 Dev. 10/11 725,987,856 733,027,500 1.010 1.012

2006 Dev. 10/11 746,400,311 754,921,037 1.011 1.012

2007 Dev. 10/11 868,997,253 870,572,399 1.002 1.002

2008 Dev. 10/11 855,481,700 856,911,748 1.002 1.002



5 Year Average 1.009 1.011 1.004 1.011 1.006 1.011 1.010 1.008 1.008


Policy Year Development Factors - Medical Losses (Case Basis) All Carriers Excluding Large Deductible Experience

Page 24


Exhibit BB

Sheet 3C

Policy Implied


1987 Dev. 27/28

1988 Dev. 27/28

1989 Dev. 27/28

1990 Dev. 27/28

1991 Dev. 27/28

1988 Dev. 26/27

1989 Dev. 26/27

1990 Dev. 26/27

1991 Dev. 26/27

1992 Dev. 26/27

1989 Dev. 25/26

1990 Dev. 25/26

1991 Dev. 25/26

1992 Dev. 25/26

1993 Dev. 25/26

1990 Dev. 24/25

1991 Dev. 24/25

1992 Dev. 24/25

1993 Dev. 24/25

1994 Dev. 24/25

1991 Dev. 23/24

1992 Dev. 23/24

1993 Dev. 23/24

1994 Dev. 23/24

1995 Dev. 23/24

1992 Dev. 22/23

1993 Dev. 22/23

1994 Dev. 22/23

1995 Dev. 22/23

1996 Dev. 22/23

1993 Dev. 21/22

1994 Dev. 21/22

1995 Dev. 21/22

1996 Dev. 21/22

1997 Dev. 21/22

1994 Dev. 20/21

1995 Dev. 20/21

1996 Dev. 20/21

1997 Dev. 20/21

1998 Dev. 20/21

1995 Dev. 19/20 554,746,595 559,562,760 1.009 1.014

1996 Dev. 19/20 495,372,775 493,394,502 0.996 1.009

1997 Dev. 19/20 503,176,780 502,590,139 0.999 1.008

1998 Dev. 19/20 516,345,771 519,689,078 1.006 1.010

1999 Dev. 19/20 566,029,121 563,199,021 0.995 1.002







Policy Year Development Factors - Medical Losses (Case Basis)

Page 25


Exhibit BB

Sheet 4A

Policy Implied


2005 Dev. 9/10 862,936,654 892,220,245 1.034 1.036

2006 Dev. 9/10 953,891,177 983,983,425 1.032 1.035

2007 Dev. 9/10 1,111,727,785 1,139,423,605 1.025 1.026

2008 Dev. 9/10 1,165,846,862 1,196,755,675 1.027 1.027

2009 Dev. 9/10 1,152,846,701 1,178,257,288 1.022 1.022

2006 Dev. 8/9 919,263,674 958,297,877 1.042 1.045

2007 Dev. 8/9 1,081,612,782 1,116,519,614 1.032 1.033

2008 Dev. 8/9 1,185,005,002 1,221,568,162 1.031 1.031

2009 Dev. 8/9 1,119,605,263 1,152,846,701 1.030 1.030

2010 Dev. 8/9 1,209,413,754 1,241,977,250 1.027 1.027

2007 Dev. 7/8 1,040,215,715 1,088,434,133 1.046 1.048

2008 Dev. 7/8 1,141,527,357 1,192,237,735 1.044 1.044

2009 Dev. 7/8 1,124,626,926 1,170,304,633 1.041 1.041

2010 Dev. 7/8 1,165,975,927 1,209,585,350 1.037 1.038

2011 Dev. 7/8 1,191,735,960 1,239,925,556 1.040 1.041

2008 Dev. 6/7 1,088,902,807 1,149,557,849 1.056 1.055

2009 Dev. 6/7 1,078,749,682 1,136,801,776 1.054 1.054

2010 Dev. 6/7 1,141,192,546 1,203,847,231 1.055 1.055

2011 Dev. 6/7 1,142,825,264 1,194,592,530 1.045 1.045

2012 Dev. 6/7 1,086,149,386 1,139,730,539 1.049 1.049

2009 Dev. 5/6 999,710,196 1,087,679,246 1.088 1.088

2010 Dev. 5/6 1,065,525,893 1,154,125,108 1.083 1.083

2011 Dev. 5/6 1,086,994,976 1,172,493,576 1.079 1.078

2012 Dev. 5/6 1,016,762,209 1,089,170,631 1.071 1.071

2013 Dev. 5/6 1,113,229,520 1,210,889,111 1.088 1.088

2010 Dev. 4/5 953,186,179 1,077,870,246 1.131 1.131

2011 Dev. 4/5 960,994,136 1,096,672,604 1.141 1.141

2012 Dev. 4/5 940,386,850 1,052,728,006 1.119 1.120

2013 Dev. 4/5 992,372,481 1,114,489,739 1.123 1.123

2014 Dev. 4/5 967,789,122 1,068,287,239 1.104 1.104

2011 Dev. 3/4 794,821,731 973,179,369 1.224 1.225

2012 Dev. 3/4 775,374,581 949,120,328 1.224 1.224

2013 Dev. 3/4 856,080,888 1,041,929,544 1.217 1.217

2014 Dev. 3/4 803,416,177 972,874,224 1.211 1.211

2015 Dev. 3/4 768,549,267 934,775,967 1.216 1.216

2012 Dev. 2/3 536,344,535 783,697,790 1.461 1.461

2013 Dev. 2/3 593,461,307 865,123,814 1.458 1.458

2014 Dev. 2/3 589,422,600 877,296,748 1.488 1.489

2015 Dev. 2/3 531,222,486 770,465,960 1.450 1.450

2016 Dev. 2/3 533,636,468 763,161,357 1.430 1.430

2013 Dev. 1/2 280,093,676 599,270,525 2.140 2.140

2014 Dev. 1/2 277,806,575 598,544,920 2.155 2.155

2015 Dev. 1/2 278,760,574 589,346,806 2.114 2.114

2016 Dev. 1/2 257,012,814 534,885,281 2.081 2.081

2017 Dev. 1/2 259,763,190 543,588,591 2.093 2.092



5 Year Average 7.428 3.504 2.120 1.455 1.212 1.120 1.081 1.059 1.054 1.036 1.029




Policy Year Development Factors - Indemnity Losses (Paid Basis)



Page 26


Exhibit BB

Sheet 4B

Policy Implied


1996 Dev. 18/19 952,285,849 967,940,445 1.016 1.023

1997 Dev. 18/19 897,980,841 911,263,059 1.015 1.023

1998 Dev. 18/19 895,719,922 906,766,878 1.012 1.022

1999 Dev. 18/19 1,023,043,141 1,038,960,714 1.016 1.023

2000 Dev. 18/19 935,755,214 947,653,786 1.013 1.021

1997 Dev. 17/18 884,402,881 898,932,220 1.016 1.023

1998 Dev. 17/18 892,537,939 904,918,620 1.014 1.022

1999 Dev. 17/18 1,007,499,449 1,023,043,141 1.015 1.023

2000 Dev. 17/18 919,056,452 936,658,113 1.019 1.024

2001 Dev. 17/18 834,389,663 849,806,626 1.018 1.023

1998 Dev. 16/17 880,128,620 893,821,744 1.016 1.023

1999 Dev. 16/17 1,000,980,521 1,014,918,695 1.014 1.022

2000 Dev. 16/17 904,822,224 919,056,452 1.016 1.022

2001 Dev. 16/17 837,535,999 834,392,775 0.996 1.013

2002 Dev. 16/17 848,160,314 862,044,177 1.016 1.022

1999 Dev. 15/16 986,506,696 1,001,798,933 1.016 1.023

2000 Dev. 15/16 896,964,719 912,417,465 1.017 1.023

2001 Dev. 15/16 823,173,341 837,537,208 1.017 1.023

2002 Dev. 15/16 831,056,331 848,160,314 1.021 1.024

2003 Dev. 15/16 1,013,356,869 1,031,420,226 1.018 1.022

2000 Dev. 14/15 882,612,840 898,317,728 1.018 1.024

2001 Dev. 14/15 797,625,134 829,608,150 1.040 1.034

2002 Dev. 14/15 815,711,964 831,609,875 1.019 1.025

2003 Dev. 14/15 990,436,903 1,013,461,087 1.023 1.026

2004 Dev. 14/15 987,523,388 1,006,768,782 1.019 1.023

2001 Dev. 13/14 782,357,881 798,945,000 1.021 1.026

2002 Dev. 13/14 804,909,790 819,837,257 1.019 1.025

2003 Dev. 13/14 973,814,028 993,770,473 1.020 1.025

2004 Dev. 13/14 964,619,040 987,542,462 1.024 1.026

2005 Dev. 13/14 960,480,660 980,764,323 1.021 1.024

2002 Dev. 12/13 788,709,390 807,157,865 1.023 1.028

2003 Dev. 12/13 954,112,387 977,720,676 1.025 1.028

2004 Dev. 12/13 947,056,768 967,788,786 1.022 1.026

2005 Dev. 12/13 933,744,256 960,481,070 1.029 1.028

2006 Dev. 12/13 1,025,631,614 1,047,635,491 1.021 1.025

2003 Dev. 11/12 931,546,149 957,351,243 1.028 1.030

2004 Dev. 11/12 935,073,610 950,973,218 1.017 1.023

2005 Dev. 11/12 913,173,388 938,187,909 1.027 1.028

2006 Dev. 11/12 998,840,108 1,025,631,614 1.027 1.029

2007 Dev. 11/12 1,154,468,467 1,175,040,223 1.018 1.019

2004 Dev. 10/11 910,512,271 937,699,279 1.030 1.031

2005 Dev. 10/11 889,090,673 917,742,031 1.032 1.032

2006 Dev. 10/11 979,570,988 1,005,168,950 1.026 1.029

2007 Dev. 10/11 1,128,034,665 1,154,472,547 1.023 1.025

2008 Dev. 10/11 1,196,642,222 1,221,146,930 1.020 1.020



5 Year Average 1.027 1.022 1.025 1.026 1.026 1.024 1.021 1.025 1.022




Page 27


Exhibit BB

Sheet 4C

Policy Implied


1987 Dev. 27/28

1988 Dev. 27/28

1989 Dev. 27/28

1990 Dev. 27/28

1991 Dev. 27/28

1988 Dev. 26/27

1989 Dev. 26/27

1990 Dev. 26/27

1991 Dev. 26/27

1992 Dev. 26/27

1989 Dev. 25/26

1990 Dev. 25/26

1991 Dev. 25/26

1992 Dev. 25/26

1993 Dev. 25/26

1990 Dev. 24/25

1991 Dev. 24/25

1992 Dev. 24/25

1993 Dev. 24/25

1994 Dev. 24/25

1991 Dev. 23/24

1992 Dev. 23/24

1993 Dev. 23/24

1994 Dev. 23/24

1995 Dev. 23/24

1992 Dev. 22/23

1993 Dev. 22/23

1994 Dev. 22/23

1995 Dev. 22/23

1996 Dev. 22/23

1993 Dev. 21/22

1994 Dev. 21/22

1995 Dev. 21/22

1996 Dev. 21/22

1997 Dev. 21/22

1994 Dev. 20/21

1995 Dev. 20/21

1996 Dev. 20/21

1997 Dev. 20/21

1998 Dev. 20/21

1995 Dev. 19/20 1,096,721,520 1,112,418,734 1.014 1.023

1996 Dev. 19/20 965,456,786 979,902,560 1.015 1.023

1997 Dev. 19/20 901,209,282 913,551,092 1.014 1.022

1998 Dev. 19/20 906,766,878 919,858,669 1.014 1.023

1999 Dev. 19/20 1,038,617,517 1,051,592,254 1.012 1.022








Page 28


Exhibit BB

Sheet 5A

Policy Implied


2005 Dev. 9/10 594,949,096 609,235,798 1.024 1.026

2006 Dev. 9/10 621,959,567 636,252,820 1.023 1.024

2007 Dev. 9/10 724,990,588 742,022,004 1.023 1.023

2008 Dev. 9/10 720,130,755 734,405,203 1.020 1.020

2009 Dev. 9/10 718,000,719 730,113,544 1.017 1.017

2006 Dev. 8/9 607,894,834 626,272,849 1.030 1.031

2007 Dev. 8/9 710,788,902 729,207,610 1.026 1.026

2008 Dev. 8/9 732,688,158 750,342,397 1.024 1.024

2009 Dev. 8/9 702,855,691 718,000,719 1.022 1.022

2010 Dev. 8/9 711,949,751 724,894,979 1.018 1.018

2007 Dev. 7/8 690,683,764 716,425,976 1.037 1.037

2008 Dev. 7/8 713,786,151 738,798,479 1.035 1.035

2009 Dev. 7/8 708,881,799 732,661,626 1.034 1.034

2010 Dev. 7/8 694,944,437 712,180,806 1.025 1.025

2011 Dev. 7/8 695,001,418 709,860,263 1.021 1.021

2008 Dev. 6/7 691,474,435 719,776,891 1.041 1.041

2009 Dev. 6/7 687,861,804 717,179,631 1.043 1.043

2010 Dev. 6/7 690,987,077 715,713,923 1.036 1.036

2011 Dev. 6/7 680,709,997 696,518,899 1.023 1.023

2012 Dev. 6/7 637,652,437 652,111,444 1.023 1.023

2009 Dev. 5/6 660,501,048 696,131,238 1.054 1.054

2010 Dev. 5/6 663,720,566 698,944,936 1.053 1.053

2011 Dev. 5/6 669,379,025 698,496,529 1.043 1.043

2012 Dev. 5/6 615,379,897 639,983,516 1.040 1.040

2013 Dev. 5/6 664,396,065 685,489,459 1.032 1.032

2010 Dev. 4/5 623,603,399 672,576,897 1.079 1.079

2011 Dev. 4/5 636,361,015 678,068,062 1.066 1.066

2012 Dev. 4/5 594,427,746 635,071,625 1.068 1.068

2013 Dev. 4/5 627,220,076 665,119,683 1.060 1.060

2014 Dev. 4/5 580,826,613 611,205,309 1.052 1.052

2011 Dev. 3/4 575,389,524 645,399,158 1.122 1.122

2012 Dev. 3/4 546,881,089 602,783,063 1.102 1.102

2013 Dev. 3/4 586,806,292 654,974,469 1.116 1.116

2014 Dev. 3/4 532,833,749 583,808,800 1.096 1.096

2015 Dev. 3/4 513,345,257 558,891,739 1.089 1.089

2012 Dev. 2/3 460,727,869 554,137,836 1.203 1.203

2013 Dev. 2/3 491,154,725 595,513,345 1.212 1.212

2014 Dev. 2/3 477,157,096 573,673,520 1.202 1.202

2015 Dev. 2/3 432,338,005 514,488,953 1.190 1.190

2016 Dev. 2/3 417,749,442 492,980,551 1.180 1.180

2013 Dev. 1/2 332,598,506 497,709,409 1.496 1.496

2014 Dev. 1/2 319,351,972 485,904,173 1.522 1.522

2015 Dev. 1/2 317,126,943 475,749,028 1.500 1.500

2016 Dev. 1/2 277,798,611 419,110,735 1.509 1.509

2017 Dev. 1/2 283,981,752 430,809,909 1.517 1.517



5 Year Average 3.424 2.268 1.510 1.200 1.108 1.065 1.044 1.031 1.029 1.023 1.022




Policy Year Development Factors - Medical Losses (Paid Basis)



Page 29


Exhibit BB

Sheet 5B

Policy Implied


1996 Dev. 18/19 451,213,753 455,653,437 1.010 1.015

1997 Dev. 18/19 453,453,530 457,285,200 1.008 1.014

1998 Dev. 18/19 460,664,495 466,834,973 1.013 1.018

1999 Dev. 18/19 502,638,060 508,429,156 1.012 1.016

2000 Dev. 18/19 487,007,329 488,584,217 1.003 1.008

1997 Dev. 17/18 449,636,973 454,120,767 1.010 1.015

1998 Dev. 17/18 459,451,581 464,218,307 1.010 1.015

1999 Dev. 17/18 494,838,164 502,638,060 1.016 1.021

2000 Dev. 17/18 481,791,808 487,429,432 1.012 1.016

2001 Dev. 17/18 456,222,946 458,975,447 1.006 1.010

1998 Dev. 16/17 455,166,583 460,174,935 1.011 1.016

1999 Dev. 16/17 493,280,997 497,392,714 1.008 1.013

2000 Dev. 16/17 476,647,700 481,791,808 1.011 1.016

2001 Dev. 16/17 450,116,431 456,223,492 1.014 1.018

2002 Dev. 16/17 489,765,541 494,050,978 1.009 1.013

1999 Dev. 15/16 488,048,800 493,776,155 1.012 1.017

2000 Dev. 15/16 474,862,327 479,281,180 1.009 1.014

2001 Dev. 15/16 443,053,786 450,117,085 1.016 1.020

2002 Dev. 15/16 482,590,552 489,765,541 1.015 1.019

2003 Dev. 15/16 599,481,347 604,296,524 1.008 1.012

2000 Dev. 14/15 469,681,037 475,859,769 1.013 1.018

2001 Dev. 14/15 441,473,707 445,823,484 1.010 1.014

2002 Dev. 14/15 475,122,323 483,038,588 1.017 1.021

2003 Dev. 14/15 590,689,906 599,567,262 1.015 1.019

2004 Dev. 14/15 587,618,404 592,232,592 1.008 1.011

2001 Dev. 13/14 435,067,766 442,488,140 1.017 1.022

2002 Dev. 13/14 471,119,914 478,632,135 1.016 1.020

2003 Dev. 13/14 582,612,818 593,239,310 1.018 1.022

2004 Dev. 13/14 578,177,075 587,629,541 1.016 1.019

2005 Dev. 13/14 638,355,270 646,096,881 1.012 1.014

2002 Dev. 12/13 465,309,126 473,373,883 1.017 1.021

2003 Dev. 12/13 576,345,430 585,508,641 1.016 1.020

2004 Dev. 12/13 569,626,213 580,729,256 1.019 1.022

2005 Dev. 12/13 625,061,416 638,358,979 1.021 1.023

2006 Dev. 12/13 655,450,540 665,171,970 1.015 1.015

2003 Dev. 11/12 567,920,705 578,298,233 1.018 1.022

2004 Dev. 11/12 561,428,462 572,097,034 1.019 1.022

2005 Dev. 11/12 614,071,057 628,793,726 1.024 1.026

2006 Dev. 11/12 641,102,455 655,450,540 1.022 1.023

2007 Dev. 11/12 750,033,500 761,278,763 1.015 1.015

2004 Dev. 10/11 551,801,850 564,222,873 1.023 1.026

2005 Dev. 10/11 605,826,272 617,537,742 1.019 1.022

2006 Dev. 10/11 631,083,728 645,393,679 1.023 1.023

2007 Dev. 10/11 735,125,078 750,047,474 1.020 1.020

2008 Dev. 10/11 734,344,567 748,173,665 1.019 1.019



5 Year Average 1.021 1.022 1.022 1.019 1.017 1.016 1.015 1.016 1.014




Page 30


Exhibit BB

Sheet 5C

Policy Implied


1987 Dev. 27/28

1988 Dev. 27/28

1989 Dev. 27/28

1990 Dev. 27/28

1991 Dev. 27/28

1988 Dev. 26/27

1989 Dev. 26/27

1990 Dev. 26/27

1991 Dev. 26/27

1992 Dev. 26/27

1989 Dev. 25/26

1990 Dev. 25/26

1991 Dev. 25/26

1992 Dev. 25/26

1993 Dev. 25/26

1990 Dev. 24/25

1991 Dev. 24/25

1992 Dev. 24/25

1993 Dev. 24/25

1994 Dev. 24/25

1991 Dev. 23/24

1992 Dev. 23/24

1993 Dev. 23/24

1994 Dev. 23/24

1995 Dev. 23/24

1992 Dev. 22/23

1993 Dev. 22/23

1994 Dev. 22/23

1995 Dev. 22/23

1996 Dev. 22/23

1993 Dev. 21/22

1994 Dev. 21/22

1995 Dev. 21/22

1996 Dev. 21/22

1997 Dev. 21/22

1994 Dev. 20/21

1995 Dev. 20/21

1996 Dev. 20/21

1997 Dev. 20/21

1998 Dev. 20/21

1995 Dev. 19/20 506,463,778 512,452,441 1.012 1.017

1996 Dev. 19/20 454,035,375 458,607,148 1.010 1.015

1997 Dev. 19/20 453,421,580 458,078,944 1.010 1.015

1998 Dev. 19/20 466,834,973 471,870,882 1.011 1.016

1999 Dev. 19/20 508,198,247 510,084,041 1.004 1.009








Page 31

October 2020 Loss Cost RevisionExhibit BB

Sheet 6A

Indemnity Medical

1. Case incurred losses for Policy Year 1987 valued as of 12/31/07 1,111,210,939 424,495,1262. Case incurred losses for Policy Year 1988 valued as of 12/31/08 1,226,269,548 497,694,2073. Case incurred losses for Policy Year 1989 valued as of 12/31/09 1,380,280,839 555,357,422

4a. Change in case incurred losses from 12/31/07 to 12/31/08 for 5,226,866 4,831,097Policy Year 1987

4b. Change in case incurred losses from 12/31/07 to 12/31/08 for 27,151,938 10,373,570all Policy Years prior to 1987





7a. Growth Factor for 1987 Line 4b. 0.747 0.7487b. Growth Factor for 1988 Line 5b. 0.722 0.6967c. Growth Factor for 1989 Line 6b. 0.678 0.663

8. Development factor 20th to ultimate: Average [(8a.)+(8b.)+(8c.)]/3 1.044 1.0588a. 1+[(4a)/(1)]+{[4b]/[(1)*(7a)]} 1.037 1.0448b. 1+[(5a)/(2)]+{[5b]/[(2)*(7b)]} 1.051 1.0828c. 1+[(6a)/(3)]+{[6b]/[(3)*(7c)]} 1.045 1.047











Policy Year Loss Development Factors from 20th Report (Case Basis) to Ultimate Incurred

All Carriers Excluding Large Deductible ExperienceIncluding Growth Factor

Page 32

October 2020 Loss Cost Revision Exhibit BB

Sheet 6B

Indemnity Medical






















Page 33


Sheet 6C

Indemnity Medical






















Page 34


Sheet 6D

Indemnity Medical






















Page 35


Sheet 6E

Indemnity Medical









70a. Change in case incurred losses from 12/31/17 to 12/31/18 for 6,867,074 285,303Policy Year 1997







77a. Change in case incurred losses from 12/31/17 to 12/31/18 for 6,867,074 285,303Policy Year 1997





80 Development factor 20th to ultimate: Average [(80a.)+(80b.)+(80c.)]/3 1.063 1.03080a. 1+[(76a)/(73)]+{[76b]/[(73)*(79a)]} 1.065 1.02980b. 1+[(77a)/(74)]+{[77b]/[(74)*(79b)]} 1.071 1.05680c. 1+[(78a)/(75)]+{[78b]/[(75)*(79c)]} 1.053 1.006

81 Indicated average development factor from 20th to ultimate 1.054 1.058[(8)+(16)+(24)+(32)+(40)+(48)+(56)+(64)+(72)+(80)]/ 10

Page 36


Exhibit BB

Sheet 7

Policy Year Paid Paid+Case Ratio Policy Year Paid Paid+Case Ratio

1995 1,112,418,734 1,238,572,660 0.898 1995 512,452,441 559,562,760 0.916

1996 979,902,560 1,097,011,675 0.893 1996 458,607,148 493,394,502 0.929

1997 913,551,092 1,014,119,988 0.901 1997 458,078,944 502,590,139 0.911

1998 919,858,669 1,007,978,853 0.913 1998 471,870,882 519,689,078 0.908

1999 1,051,592,254 1,156,237,790 0.909 1999 510,084,041 563,199,021 0.906

Average 0.903 Average 0.914

Derivation of 20th-to-Ultimate Paid Loss Development Factors

Indemnity Medical

(1) Selected Paid+Case 20th-to-Ultimate Loss Development Factor 1.054 1.058

(2) Paid-to-Paid+Case Ratio 0.903 0.914

(3) Paid 20th-to-Ultimate Loss Development Factor = (1)/(2) 1.167 1.158



Policy Year Loss Development Factors from 20th Report (Paid Basis) to Ultimate Incurred

Policy Year Paid-to-Paid+Case Ratios

Indemnity Losses at a 20th Report Medical Losses at a 20th Report

Page 37

October 2020 Loss Cost RevisionExhibit CC

Sheet 1

Experience from Large Deductible Policies Only

PolicyYear 1st Report 2nd Report 3rd Report 4th Report 5th Report 6th Report

2009 Dev. 5/6 679,989,768 677,717,932 0.9972010 Dev. 5/6 769,134,030 769,930,260 1.0012011 Dev. 5/6 976,339,778 975,873,811 1.0002012 Dev. 5/6 1,186,771,548 1,188,125,595 1.0012013 Dev. 5/6 1,296,865,712 1,293,438,232 0.997

2010 Dev. 4/5 771,240,273 771,628,240 1.0012011 Dev. 4/5 985,238,057 983,460,050 0.9982012 Dev. 4/5 1,187,997,740 1,186,771,548 0.9992013 Dev. 4/5 1,293,674,040 1,297,256,475 1.0032014 Dev. 4/5 1,599,874,827 1,601,611,634 1.001

2011 Dev. 3/4 985,786,049 987,736,612 1.0022012 Dev. 3/4 1,189,835,607 1,189,513,540 1.0002013 Dev. 3/4 1,296,216,920 1,293,674,040 0.9982014 Dev. 3/4 1,604,613,080 1,600,252,402 0.9972015 Dev. 3/4 1,865,518,726 1,859,909,522 0.997

2012 Dev. 2/3 1,197,489,205 1,192,747,273 0.9962013 Dev. 2/3 1,286,005,484 1,296,672,609 1.0082014 Dev. 2/3 1,590,916,791 1,604,613,444 1.0092015 Dev. 2/3 1,872,284,943 1,867,254,867 0.9972016 Dev. 2/3 2,201,214,527 2,192,019,491 0.996

2013 Dev. 1/2 1,273,741,565 1,289,842,024 1.0132014 Dev. 1/2 1,597,654,971 1,593,246,026 0.9972015 Dev. 1/2 1,836,582,831 1,872,284,943 1.0192016 Dev. 1/2 2,181,866,890 2,205,356,420 1.0112017 Dev. 1/2 2,429,801,019 2,478,117,457 1.020

1st/2nd 2nd/3rd 3rd/4th 4th/5th 5th/6th 6th/Ult. All Year AverageAge to Age 1.012 1.001 0.999 1.000 0.999 1.000Age to Ult. 1.011 0.999 0.998 0.999 0.999 1.000

4 Year AverageAge to Age 1.012 1.003 0.998 1.000 1.000 1.000Age to Ult. 1.013 1.001 0.998 1.000 1.000 1.000



Mid 3 of 5 Year AverageAge to Age 1.014 1.000 0.998 1.000 0.999 1.000Age to Ult. 1.011 0.997 0.997 0.999 0.999 1.000

Premium development to ultimate* 1.011 0.997 0.997 0.999 0.999 1.000

*Premium development based on mid 3 of 5 year average


Development Factors - Premiums

Page 38


Exhibit CC

Sheet 2A

Policy


2005 Dev. 9/10 358,225,565 365,292,937 1.020 1.024

2006 Dev. 9/10 353,729,360 359,652,505 1.017 1.022

2007 Dev. 9/10 375,199,735 377,870,809 1.007 1.008

2008 Dev. 9/10 384,320,203 389,856,829 1.014 1.014

2009 Dev. 9/10 442,828,186 443,228,805 1.001 1.001

2006 Dev. 8/9 345,714,555 353,979,180 1.024 1.026

2007 Dev. 8/9 364,380,351 375,199,735 1.030 1.031

2008 Dev. 8/9 382,514,245 384,320,203 1.005 1.005

2009 Dev. 8/9 439,377,332 442,828,186 1.008 1.008

2010 Dev. 8/9 455,904,893 459,155,883 1.007 1.007

2007 Dev. 7/8 361,138,975 366,006,774 1.013 1.014

2008 Dev. 7/8 376,435,604 382,514,625 1.016 1.016

2009 Dev. 7/8 431,988,610 439,377,332 1.017 1.017

2010 Dev. 7/8 452,422,357 457,949,316 1.012 1.012

2011 Dev. 7/8 553,249,558 557,007,888 1.007 1.007

2008 Dev. 6/7 370,358,593 378,695,248 1.023 1.023

2009 Dev. 6/7 426,305,382 435,200,993 1.021 1.021

2010 Dev. 6/7 443,643,386 452,422,357 1.020 1.020

2011 Dev. 6/7 545,894,689 555,892,793 1.018 1.018

2012 Dev. 6/7 653,900,127 662,922,626 1.014 1.014

2009 Dev. 5/6 415,121,418 428,595,496 1.032 1.032

2010 Dev. 5/6 426,948,464 448,421,191 1.050 1.050

2011 Dev. 5/6 531,998,436 545,894,689 1.026 1.026

2012 Dev. 5/6 638,837,605 654,701,850 1.025 1.025

2013 Dev. 5/6 689,009,006 700,276,095 1.016 1.016

2010 Dev. 4/5 409,112,925 428,914,793 1.048 1.048

2011 Dev. 4/5 515,339,261 536,037,508 1.040 1.040

2012 Dev. 4/5 609,589,394 638,837,605 1.048 1.048

2013 Dev. 4/5 663,431,884 689,294,805 1.039 1.039

2014 Dev. 4/5 763,505,440 781,481,076 1.024 1.024

2011 Dev. 3/4 472,908,262 517,329,868 1.094 1.094

2012 Dev. 3/4 554,831,393 610,833,174 1.101 1.101

2013 Dev. 3/4 608,267,104 663,431,884 1.091 1.091

2014 Dev. 3/4 702,102,231 763,934,546 1.088 1.088

2015 Dev. 3/4 751,416,808 802,800,803 1.068 1.068

2012 Dev. 2/3 459,925,611 556,890,935 1.211 1.211

2013 Dev. 2/3 495,696,044 608,392,154 1.227 1.227

2014 Dev. 2/3 567,317,679 702,102,231 1.238 1.238

2015 Dev. 2/3 622,666,606 751,843,286 1.207 1.207

2016 Dev. 2/3 671,715,165 782,390,766 1.165 1.165

2013 Dev. 1/2 331,860,186 498,786,482 1.503 1.503

2014 Dev. 1/2 369,659,903 568,149,014 1.537 1.537

2015 Dev. 1/2 398,998,488 622,666,606 1.561 1.561

2016 Dev. 1/2 440,304,453 672,479,356 1.527 1.527

2017 Dev. 1/2 455,565,996 685,465,724 1.505 1.505

Adjusted


5 Year Average 2.825 1.850 1.527 1.210 1.088 1.040 1.030 1.019 1.013 1.016 1.014

4 Year Average 2.781 1.814 1.533 1.209 1.087 1.038 1.029 1.018 1.013 1.013 1.011

3 Year Average 2.691 1.758 1.531 1.203 1.082 1.037 1.022 1.017 1.012 1.007 1.008

2 Year Average 2.588 1.707 1.516 1.186 1.078 1.032 1.021 1.016 1.010 1.008 1.008

Latest Year 2.397 1.593 1.505 1.165 1.068 1.024 1.016 1.014 1.007 1.007 1.001

Mid 3 of 5 2.851 1.872 1.523 1.215 1.091 1.042 1.028 1.020 1.014 1.014 1.015


*Loss development to ultimate based on adjusted 5 year average for 1st to 20th maturities and 5 year average of non-deductible experience for 20th to ultimate.




Page 39


Exhibit CC

Sheet 2B

Policy


1996 Dev. 18/19 216,844,332 217,483,827 1.003 1.017

1997 Dev. 18/19 242,746,701 244,514,184 1.007 1.019

1998 Dev. 18/19 268,737,993 270,079,971 1.005 1.018

1999 Dev. 18/19 285,628,591 287,776,169 1.008 1.020

2000 Dev. 18/19 328,725,384 334,672,667 1.018 1.024

1997 Dev. 17/18 240,512,931 242,746,701 1.009 1.020

1998 Dev. 17/18 267,677,158 268,737,993 1.004 1.018

1999 Dev. 17/18 284,339,113 285,628,591 1.005 1.018

2000 Dev. 17/18 342,835,677 345,069,891 1.007 1.019

2001 Dev. 17/18 433,582,497 432,855,256 0.998 1.014

1998 Dev. 16/17 265,032,030 267,677,158 1.010 1.021

1999 Dev. 16/17 283,889,653 284,339,113 1.002 1.017

2000 Dev. 16/17 349,346,115 342,835,677 0.981 1.007

2001 Dev. 16/17 429,322,359 433,582,497 1.010 1.020

2002 Dev. 16/17 374,733,413 376,441,891 1.005 1.017

1999 Dev. 15/16 282,569,173 284,830,446 1.008 1.020

2000 Dev. 15/16 345,661,000 349,346,115 1.011 1.021

2001 Dev. 15/16 429,517,888 429,322,359 1.000 1.015

2002 Dev. 15/16 372,316,824 374,733,413 1.006 1.018

2003 Dev. 15/16 415,655,437 415,754,730 1.000 1.014

2000 Dev. 14/15 342,941,601 346,859,667 1.011 1.021

2001 Dev. 14/15 425,502,954 429,517,888 1.009 1.019

2002 Dev. 14/15 370,689,805 372,316,824 1.004 1.017

2003 Dev. 14/15 411,443,086 415,655,437 1.010 1.020

2004 Dev. 14/15 423,430,303 425,298,040 1.004 1.016

2001 Dev. 13/14 423,022,457 426,557,329 1.008 1.019

2002 Dev. 13/14 369,665,826 370,689,805 1.003 1.016

2003 Dev. 13/14 407,776,220 411,443,086 1.009 1.019

2004 Dev. 13/14 418,786,167 423,430,303 1.011 1.019

2005 Dev. 13/14 376,109,268 377,212,272 1.003 1.014

2002 Dev. 12/13 367,076,118 369,693,579 1.007 1.018

2003 Dev. 12/13 406,851,915 407,776,220 1.002 1.015

2004 Dev. 12/13 415,837,478 418,786,167 1.007 1.017

2005 Dev. 12/13 371,745,565 376,109,268 1.012 1.019

2006 Dev. 12/13 366,977,250 369,376,322 1.007 1.015

2003 Dev. 11/12 404,563,464 406,854,415 1.006 1.017

2004 Dev. 11/12 410,592,541 415,837,478 1.013 1.021

2005 Dev. 11/12 366,999,649 371,745,565 1.013 1.020

2006 Dev. 11/12 364,283,791 366,977,250 1.007 1.015

2007 Dev. 11/12 380,006,711 381,436,734 1.004 1.005

2004 Dev. 10/11 405,674,920 410,644,162 1.012 1.020

2005 Dev. 10/11 365,235,678 366,999,649 1.005 1.016

2006 Dev. 10/11 359,652,505 364,283,791 1.013 1.019

2007 Dev. 10/11 377,870,809 380,006,711 1.006 1.007

2008 Dev. 10/11 389,856,829 391,284,860 1.004 1.004

Adjusted


5 Year Average 1.013 1.016 1.017 1.017 1.019 1.018 1.016 1.018 1.020

4 Year Average 1.011 1.015 1.016 1.017 1.018 1.017 1.015 1.017 1.020

3 Year Average 1.010 1.013 1.017 1.017 1.017 1.016 1.015 1.017 1.021

2 Year Average 1.006 1.010 1.017 1.016 1.018 1.016 1.019 1.017 1.022

Latest Year 1.004 1.005 1.015 1.014 1.016 1.014 1.017 1.014 1.024

Mid 3 of 5 1.014 1.017 1.017 1.018 1.019 1.018 1.018 1.018 1.019




Page 40


Exhibit CC

Sheet 2C

Policy


1987 Dev. 27/28

1988 Dev. 27/28

1989 Dev. 27/28

1990 Dev. 27/28

1991 Dev. 27/28

1988 Dev. 26/27

1989 Dev. 26/27

1990 Dev. 26/27

1991 Dev. 26/27

1992 Dev. 26/27

1989 Dev. 25/26

1990 Dev. 25/26

1991 Dev. 25/26

1992 Dev. 25/26

1993 Dev. 25/26

1990 Dev. 24/25

1991 Dev. 24/25

1992 Dev. 24/25

1993 Dev. 24/25

1994 Dev. 24/25

1991 Dev. 23/24

1992 Dev. 23/24

1993 Dev. 23/24

1994 Dev. 23/24

1995 Dev. 23/24

1992 Dev. 22/23

1993 Dev. 22/23

1994 Dev. 22/23

1995 Dev. 22/23

1996 Dev. 22/23

1993 Dev. 21/22

1994 Dev. 21/22

1995 Dev. 21/22

1996 Dev. 21/22

1997 Dev. 21/22

1994 Dev. 20/21

1995 Dev. 20/21

1996 Dev. 20/21

1997 Dev. 20/21

1998 Dev. 20/21

1995 Dev. 19/20 236,316,830 236,977,892 1.003 1.017

1996 Dev. 19/20 217,483,827 218,240,338 1.003 1.017

1997 Dev. 19/20 244,514,184 245,564,413 1.004 1.018

1998 Dev. 19/20 270,079,971 270,042,264 1.000 1.016

1999 Dev. 19/20 281,462,211 282,385,824 1.003 1.017

Adjusted

Development 19th/20th 20th/Ult





Latest Year 1.017 1.040

Mid 3 of 5 1.017 1.041




Page 41

66.68% Non Sched out of PPD Duration Cap Adjustment October 2020 Loss Cost Revision

86.56% PPD out of Indemnity Large Deductible Only: Policy Year Indemnity Paid + Case Development Exhibit CC

57.72% % Impacted Sheet 2D

ORIGINAL TRIANGLEPY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

1995 1.003 1.054

1996 1.003 1.003 1.054

1997 1.009 1.007 1.004 1.054

1998 1.010 1.004 1.005 1.000 1.054

1999 1.008 1.002 1.005 1.008 1.003 1.054

2000 1.011 1.011 0.981 1.007 1.018

2001 1.008 1.009 1.000 1.010 0.998

2002 1.007 1.003 1.004 1.006 1.005

2003 1.006 1.002 1.009 1.010 1.000

2004 1.012 1.013 1.007 1.011 1.004

2005 1.020 1.005 1.013 1.012 1.003

2006 1.024 1.017 1.013 1.007 1.007

2007 1.013 1.030 1.007 1.006 1.004

2008 1.023 1.016 1.005 1.014 1.004

2009 1.032 1.021 1.017 1.008 1.001

2010 1.048 1.050 1.020 1.012 1.007

2011 1.094 1.040 1.026 1.018 1.007

2012 1.211 1.101 1.048 1.025 1.014

2013 1.503 1.227 1.091 1.039 1.016

2014 1.537 1.238 1.088 1.024

2015 1.561 1.207 1.068

2016 1.527 1.165

2017 1.505

5 Year Average 1.527 1.210 1.088 1.040 1.030 1.019 1.013 1.015 1.012 1.008 1.009 1.007 1.007 1.008 1.005 1.002 1.005 1.008 1.003 1.054

RESTATED TRIANGLE POST DURATION CAP ADJUSTMENTPY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

% Cases affected 0 2 5 15 25 40 55 70 75 80 85 90 95 95 95 95 95 95 95 95

1995 1.001 1.024

1996 1.001 1.001 1.024

1997 1.004 1.003 1.002 1.024

1998 1.005 1.002 1.002 1.000 1.024

1999 1.004 1.001 1.002 1.004 1.001 1.024

2000 1.005 1.005 0.991 1.003 1.008

2001 1.004 1.004 1.000 1.005 0.999

2002 1.003 1.001 1.002 1.003 1.002

2003 1.003 1.001 1.004 1.005 1.000

2004 1.006 1.007 1.003 1.005 1.002

2005 1.011 1.003 1.007 1.006 1.001

2006 1.017 1.012 1.009 1.005 1.005

2007 1.013 1.030 1.007 1.006 1.004

2008 1.023 1.016 1.005 1.014 1.004

2009 1.032 1.021 1.017 1.008 1.001

2010 1.048 1.050 1.020 1.012 1.007

2011 1.094 1.040 1.026 1.018 1.007

2012 1.211 1.101 1.048 1.025 1.014

2013 1.503 1.227 1.091 1.039 1.016

2014 1.537 1.238 1.088 1.024

2015 1.561 1.207 1.068

2016 1.527 1.165

2017 1.505

5 Year Average 1.527 1.210 1.088 1.040 1.030 1.019 1.013 1.013 1.009 1.006 1.005 1.004 1.003 1.004 1.002 1.001 1.002 1.004 1.001 1.024

Page 42

5.8% Percentage of claims assumed to be in the SDF SDF Adjustment October 2020 Loss Cost Revision

1.188 Impact Large Deductible Only: Policy Year Indemnity Paid + Case Development Exhibit CC

17.80% Target Impact 11.3% Sheet 2E

RESTATED TRIANGLE POST DURATION CAP ADJUSTMENTPY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

1995 1.001 1.024

1996 1.001 1.001 1.024

1997 1.004 1.003 1.002 1.024

1998 1.005 1.002 1.002 1.000 1.024

1999 1.004 1.001 1.002 1.004 1.001 1.024

2000 1.005 1.005 0.991 1.003 1.008

2001 1.004 1.004 1.000 1.005 0.999

2002 1.003 1.001 1.002 1.003 1.002

2003 1.003 1.001 1.004 1.005 1.000

2004 1.006 1.007 1.003 1.005 1.002

2005 1.011 1.003 1.007 1.006 1.001

2006 1.017 1.012 1.009 1.005 1.005

2007 1.013 1.030 1.007 1.006 1.004

2008 1.023 1.016 1.005 1.014 1.004

2009 1.032 1.021 1.017 1.008 1.001

2010 1.048 1.050 1.020 1.012 1.007

2011 1.094 1.040 1.026 1.018 1.007

2012 1.211 1.101 1.048 1.025 1.014

2013 1.503 1.227 1.091 1.039 1.016

2014 1.537 1.238 1.088 1.024

2015 1.561 1.207 1.068

2016 1.527 1.1652017 1.505

5 Year Average 1.527 1.210 1.088 1.040 1.030 1.019 1.013 1.013 1.009 1.006 1.005 1.004 1.003 1.004 1.002 1.001 1.002 1.004 1.001 1.024

RESTATED TRIANGLE POST DURATION CAP + SDF ADJUSTMENTSPY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

% Cases affected 4.4% 12.5% 27.6% 44.3% 60.1% 74.857% 84.2% 90.3% 94.2% 96.6% 98.2% 99.1% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

1995 1.012 1.035

1996 1.012 1.012 1.035

1997 1.015 1.014 1.013 1.035

1998 1.016 1.013 1.013 1.011 1.035

1999 1.015 1.012 1.013 1.015 1.012 1.035

2000 1.016 1.016 1.002 1.014 1.019

2001 1.015 1.015 1.011 1.016 1.010

2002 1.014 1.012 1.013 1.014 1.013

2003 1.014 1.012 1.015 1.016 1.011

2004 1.017 1.018 1.014 1.016 1.013

2005 1.021 1.014 1.018 1.017 1.012

2006 1.026 1.021 1.018 1.014 1.014

2007 1.014 1.031 1.008 1.007 1.005

2008 1.023 1.016 1.005 1.014 1.004

2009 1.032 1.021 1.017 1.008 1.001

2010 1.048 1.050 1.020 1.012 1.007

2011 1.094 1.040 1.026 1.018 1.007

2012 1.211 1.101 1.048 1.025 1.014

2013 1.503 1.227 1.091 1.039 1.016

2014 1.537 1.238 1.088 1.024

2015 1.561 1.207 1.068

2016 1.527 1.165

2017 1.505

5 Year Average 1.527 1.210 1.088 1.040 1.030 1.019 1.013 1.015 1.013 1.012 1.014 1.014 1.014 1.015 1.013 1.012 1.013 1.015 1.012 1.035

Page 43

6.3% Percentage of Losses assumed to be in the Fund Re-opened Case Fund Adjustment October 2020 Loss Cost Revision


6.3% Target Impact 4.5% Sheet 2F

RESTATED TRIANGLE POST DURATION CAP + SDF ADJUSTMENTSPY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

1995 1.012 1.035

1996 1.012 1.012 1.035

1997 1.015 1.014 1.013 1.035

1998 1.016 1.013 1.013 1.011 1.035

1999 1.015 1.012 1.013 1.015 1.012 1.035

2000 1.016 1.016 1.002 1.014 1.019

2001 1.015 1.015 1.011 1.016 1.010

2002 1.014 1.012 1.013 1.014 1.013

2003 1.014 1.012 1.015 1.016 1.011

2004 1.017 1.018 1.014 1.016 1.013

2005 1.021 1.014 1.018 1.017 1.012

2006 1.026 1.021 1.018 1.014 1.014

2007 1.014 1.031 1.008 1.007 1.005

2008 1.023 1.016 1.005 1.014 1.004

2009 1.032 1.021 1.017 1.008 1.001

2010 1.048 1.050 1.020 1.012 1.007

2011 1.094 1.040 1.026 1.018 1.007

2012 1.211 1.101 1.048 1.025 1.014

2013 1.503 1.227 1.091 1.039 1.016

2014 1.537 1.238 1.088 1.024

2015 1.561 1.207 1.068

2016 1.527 1.1652017 1.505

5 Year Average 1.527 1.210 1.088 1.040 1.030 1.019 1.013 1.015 1.013 1.012 1.014 1.014 1.014 1.015 1.013 1.012 1.013 1.015 1.012 1.035

RESTATED TRIANGLE POST DURATION CAP + SDF + RE-OPENED CASE FUND ADJUSTMENTsPY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

% Losses affected 25.0% 45.0% 60.0% 70.0% 78.0% 83.0% 86.0% 88.0% 89.5% 91.0% 92.0% 93.0% 94.0% 100.0%

1995 1.017 1.041

1996 1.017 1.017 1.041

1997 1.020 1.019 1.018 1.041

1998 1.021 1.018 1.018 1.016 1.041

1999 1.020 1.017 1.018 1.020 1.017 1.040

2000 1.021 1.021 1.007 1.019 1.024

2001 1.019 1.019 1.015 1.020 1.014

2002 1.018 1.016 1.017 1.018 1.017

2003 1.017 1.015 1.019 1.020 1.014

2004 1.020 1.021 1.017 1.019 1.016

2005 1.024 1.016 1.020 1.019 1.014

2006 1.026 1.022 1.019 1.015 1.015

2007 1.014 1.031 1.008 1.007 1.005

2008 1.023 1.016 1.005 1.014 1.004

2009 1.032 1.021 1.017 1.008 1.001

2010 1.048 1.050 1.020 1.012 1.007

2011 1.094 1.040 1.026 1.018 1.007

2012 1.211 1.101 1.048 1.025 1.014

2013 1.503 1.227 1.091 1.039 1.016

2014 1.537 1.238 1.088 1.024

2015 1.561 1.207 1.068

2016 1.527 1.165

2017 1.505

5 Year Average 1.527 1.210 1.088 1.040 1.030 1.019 1.013 1.016 1.014 1.013 1.016 1.017 1.017 1.019 1.018 1.016 1.018 1.020 1.017 1.041

4 Year Average 1.533 1.209 1.087 1.038 1.029 1.018 1.013 1.013 1.011 1.011 1.015 1.016 1.017 1.018 1.017 1.015 1.017 1.020 1.017 1.041

3 Year Average 1.531 1.203 1.082 1.037 1.022 1.017 1.012 1.007 1.008 1.010 1.013 1.017 1.017 1.017 1.016 1.015 1.017 1.021 1.017 1.041

2 Year Average 1.516 1.186 1.078 1.032 1.021 1.016 1.010 1.008 1.008 1.006 1.010 1.017 1.016 1.018 1.016 1.019 1.017 1.022 1.016 1.040

Latest Year 1.505 1.165 1.068 1.024 1.016 1.014 1.007 1.007 1.001 1.004 1.005 1.015 1.014 1.016 1.014 1.017 1.014 1.024 1.017 1.040

Mid 3 of 5 1.523 1.215 1.091 1.042 1.028 1.020 1.014 1.014 1.015 1.014 1.017 1.017 1.018 1.019 1.018 1.018 1.018 1.019 1.017 1.041

5 Yearr UDF 2.825 1.850 1.529 1.405 1.351 1.312 1.288 1.271 1.251 1.234 1.218 1.199 1.179 1.159 1.137 1.117 1.099 1.080 1.059 1.041

Page 44

October 2020 Loss Cost RevisionExhibit CCSheet 2G

Duration Cap Impact

(1) Original Factor: Large Deductible Only: PY 2004 13th to 14th link ratio 1.011(2) Development portion 0.011(3) % of Non Sched out of total PPD 66.68%(4) % of PPD out of total indemnity 86.56%(5) % Non Scheduled out of indemnity (3) x (4) 57.72%(6) Development portion that is NSPPD (2) x (5) 0.006(7) Development portion that is other than NSPPD (2) - (6) 0.005(8) % of cases effected by limited duration* 95%(9) Restated NSPPD development portion (6) x [1.0 - (8)] 0.0003

(10) Restated total development 1.0 + (9) + (7), rounded to 3 decimal points 1.005

Special Disability Fund Adjustment

(1) LRA = Adjusted Link Ratio from Duration Cap : Large Deductible Only: PY 2004, 13th to 14th link ratio 1.005(2) SDF Affected %: Percentage of claims assumed to be in SDF 5.80% * (3) SDF% = Percentage of cases accepted to the SDF at a given development age 100.00%(4) AF = Adjustment Factor, for All Carriers 1.188 **(5) LRS = the Restated link ratio, rounded to 3 decimal points 1.016

Development Adjustments

Calculation of Restated Development for the Elimination of Special Disability FundLRS = LRA x SDF Claim % x SDF% x AF + LRA x (1- SDF Claim % x SDF%)

* On average, 5.8% of indemnity claims are affected by the elimination of the SDF. The information used to calculate this percentagewas provided by the Special Funds Conservation Committee.

Calculation of Restated Development for Duration Cap

** The AF of 1.188, determined for All Carriers, was derived by restating the latest available loss development triangle which consisted entirely of pre-reform years (used in the 2008 Loss Cost Filing) in the same way as described above, such that the restated LDF to ultimate is 17.8% (original estimated impact) higher than the original LDF to ultimate.

* Row (8) assumes at this point in the development, 95% of cases are now limited, whereas before they were still developing. 5% of the cases are still developing at this point in the triangle, even after the reform, as they still haven't reached the maximum duration.These assumed percentages can be found on the top of each column of the "restated" triangles. The percentages are based on a distribution of severities obtained from the WCB.

Page 45


Exhibit CC

Sheet 3A

Policy


2005 Dev. 9/10 245,625,887 251,078,844 1.022 1.025

2006 Dev. 9/10 257,920,289 264,964,455 1.027 1.028

2007 Dev. 9/10 270,039,107 272,655,406 1.010 1.010

2008 Dev. 9/10 258,589,300 266,429,101 1.030 1.030

2009 Dev. 9/10 283,606,900 285,442,342 1.006 1.006

2006 Dev. 8/9 252,705,461 258,174,149 1.022 1.022

2007 Dev. 8/9 262,052,884 270,039,107 1.030 1.030

2008 Dev. 8/9 254,315,830 258,589,300 1.017 1.017

2009 Dev. 8/9 280,374,561 283,606,900 1.012 1.012

2010 Dev. 8/9 264,751,311 265,540,279 1.003 1.003

2007 Dev. 7/8 257,577,773 265,255,981 1.030 1.030

2008 Dev. 7/8 250,299,683 254,321,850 1.016 1.016

2009 Dev. 7/8 272,652,963 280,374,561 1.028 1.028

2010 Dev. 7/8 266,772,013 265,714,041 0.996 0.996

2011 Dev. 7/8 316,177,404 318,818,295 1.008 1.008

2008 Dev. 6/7 243,981,570 251,654,152 1.031 1.031

2009 Dev. 6/7 269,447,347 275,632,045 1.023 1.023

2010 Dev. 6/7 258,167,229 266,772,013 1.033 1.033

2011 Dev. 6/7 307,493,767 317,560,880 1.033 1.033

2012 Dev. 6/7 355,502,221 363,889,564 1.024 1.024

2009 Dev. 5/6 259,627,435 271,274,778 1.045 1.045

2010 Dev. 5/6 253,232,898 261,500,528 1.033 1.033

2011 Dev. 5/6 300,761,392 307,493,151 1.022 1.022

2012 Dev. 5/6 349,809,215 355,891,225 1.017 1.017

2013 Dev. 5/6 353,025,997 370,398,575 1.049 1.049

2010 Dev. 4/5 245,666,437 254,877,316 1.037 1.037

2011 Dev. 4/5 283,837,177 303,780,831 1.070 1.070

2012 Dev. 4/5 334,916,698 349,809,215 1.044 1.044

2013 Dev. 4/5 335,722,021 353,205,770 1.052 1.052

2014 Dev. 4/5 390,543,300 401,515,058 1.028 1.028

2011 Dev. 3/4 263,457,012 285,630,345 1.084 1.084

2012 Dev. 3/4 305,383,703 335,494,092 1.099 1.099

2013 Dev. 3/4 323,279,779 335,722,021 1.038 1.038

2014 Dev. 3/4 363,026,608 390,643,160 1.076 1.076

2015 Dev. 3/4 379,539,277 406,151,122 1.070 1.070

2012 Dev. 2/3 274,410,596 306,872,389 1.118 1.118

2013 Dev. 2/3 285,700,157 323,382,009 1.132 1.132

2014 Dev. 2/3 327,134,232 363,026,608 1.110 1.110

2015 Dev. 2/3 340,247,066 379,885,264 1.116 1.116

2016 Dev. 2/3 373,276,898 406,814,121 1.090 1.090

2013 Dev. 1/2 236,633,888 287,711,485 1.216 1.216

2014 Dev. 1/2 258,906,216 327,774,447 1.266 1.266

2015 Dev. 1/2 273,233,446 340,247,066 1.245 1.245

2016 Dev. 1/2 291,969,645 374,004,262 1.281 1.281

2017 Dev. 1/2 307,340,567 388,682,580 1.265 1.265

Adjusted


5 Year Average 2.008 1.600 1.255 1.113 1.073 1.046 1.033 1.029 1.016 1.017 1.020

4 Year Average 1.966 1.555 1.264 1.112 1.071 1.049 1.030 1.028 1.012 1.015 1.019

3 Year Average 1.887 1.493 1.264 1.105 1.062 1.042 1.030 1.030 1.011 1.010 1.015

2 Year Average 1.873 1.471 1.273 1.103 1.073 1.040 1.033 1.028 1.002 1.007 1.018

Latest Year 1.604 1.268 1.265 1.090 1.070 1.028 1.049 1.024 1.008 1.003 1.006

Mid 3 of 5 2.067 1.642 1.259 1.115 1.077 1.045 1.033 1.029 1.018 1.017 1.021






Page 46


Exhibit CC

Sheet 3B

Policy


1996 Dev. 18/19 122,679,193 123,674,839 1.008 1.014

1997 Dev. 18/19 143,489,253 143,422,123 1.000 1.005

1998 Dev. 18/19 149,562,583 150,281,347 1.005 1.010

1999 Dev. 18/19 153,736,491 153,136,062 0.996 1.001

2000 Dev. 18/19 199,924,523 178,741,179 0.894 0.899

1997 Dev. 17/18 143,795,327 143,489,253 0.998 1.003

1998 Dev. 17/18 149,027,783 149,562,583 1.004 1.009

1999 Dev. 17/18 153,049,291 153,736,491 1.004 1.010

2000 Dev. 17/18 202,838,530 203,913,822 1.005 1.010

2001 Dev. 17/18 263,686,746 261,649,927 0.992 0.997

1998 Dev. 16/17 146,262,819 149,027,783 1.019 1.024

1999 Dev. 16/17 154,935,069 153,049,291 0.988 0.993

2000 Dev. 16/17 202,664,484 202,838,530 1.001 1.006

2001 Dev. 16/17 247,895,381 263,686,746 1.064 1.069

2002 Dev. 16/17 223,794,120 222,857,285 0.996 1.000

1999 Dev. 15/16 156,896,977 155,445,920 0.991 0.996

2000 Dev. 15/16 202,557,717 202,664,484 1.001 1.006

2001 Dev. 15/16 258,707,907 247,895,381 0.958 0.963

2002 Dev. 15/16 221,108,481 223,794,120 1.012 1.017

2003 Dev. 15/16 262,463,644 262,414,371 1.000 1.004

2000 Dev. 14/15 201,881,421 203,331,636 1.007 1.012

2001 Dev. 14/15 256,917,661 258,707,907 1.007 1.012

2002 Dev. 14/15 219,310,284 221,108,481 1.008 1.013

2003 Dev. 14/15 263,469,049 262,463,644 0.996 1.000

2004 Dev. 14/15 280,182,124 281,233,017 1.004 1.007

2001 Dev. 13/14 250,078,012 257,985,816 1.032 1.037

2002 Dev. 13/14 215,448,436 219,310,284 1.018 1.022

2003 Dev. 13/14 261,590,467 263,469,049 1.007 1.011

2004 Dev. 13/14 277,045,148 280,182,124 1.011 1.014

2005 Dev. 13/14 260,708,681 260,280,139 0.998 1.000

2002 Dev. 12/13 214,960,940 215,460,249 1.002 1.007

2003 Dev. 12/13 261,181,876 261,590,467 1.002 1.005

2004 Dev. 12/13 272,991,920 277,045,148 1.015 1.018

2005 Dev. 12/13 257,016,950 260,708,681 1.014 1.016

2006 Dev. 12/13 270,657,145 271,890,461 1.005 1.005

2003 Dev. 11/12 255,940,664 261,190,971 1.021 1.024

2004 Dev. 11/12 270,666,051 272,991,920 1.009 1.012

2005 Dev. 11/12 254,224,660 257,016,950 1.011 1.013

2006 Dev. 11/12 269,026,661 270,657,145 1.006 1.007

2007 Dev. 11/12 274,808,378 273,434,089 0.995 0.995

2004 Dev. 10/11 268,163,426 270,677,089 1.009 1.013

2005 Dev. 10/11 251,005,289 254,224,660 1.013 1.015

2006 Dev. 10/11 264,964,455 269,026,661 1.015 1.016

2007 Dev. 10/11 272,655,406 274,808,378 1.008 1.008

2008 Dev. 10/11 266,429,101 267,555,967 1.004 1.004

Adjusted


5 Year Average 1.011 1.010 1.010 1.017 1.009 0.997 1.018 1.006 0.986

4 Year Average 1.011 1.007 1.011 1.012 1.008 0.997 1.017 1.007 0.979

3 Year Average 1.009 1.005 1.013 1.009 1.006 0.994 1.025 1.006 0.970

2 Year Average 1.006 1.001 1.011 1.007 1.003 1.010 1.034 1.004 0.950

Latest Year 1.004 0.995 1.005 1.000 1.007 1.004 1.000 0.997 0.899

Mid 3 of 5 1.012 1.011 1.010 1.016 1.010 1.002 1.010 1.007 1.005




Page 47


Exhibit CC

Sheet 3C

Policy


1987 Dev. 27/28

1988 Dev. 27/28

1989 Dev. 27/28

1990 Dev. 27/28

1991 Dev. 27/28

1988 Dev. 26/27

1989 Dev. 26/27

1990 Dev. 26/27

1991 Dev. 26/27

1992 Dev. 26/27

1989 Dev. 25/26

1990 Dev. 25/26

1991 Dev. 25/26

1992 Dev. 25/26

1993 Dev. 25/26

1990 Dev. 24/25

1991 Dev. 24/25

1992 Dev. 24/25

1993 Dev. 24/25

1994 Dev. 24/25

1991 Dev. 23/24

1992 Dev. 23/24

1993 Dev. 23/24

1994 Dev. 23/24

1995 Dev. 23/24

1992 Dev. 22/23

1993 Dev. 22/23

1994 Dev. 22/23

1995 Dev. 22/23

1996 Dev. 22/23

1993 Dev. 21/22

1994 Dev. 21/22

1995 Dev. 21/22

1996 Dev. 21/22

1997 Dev. 21/22

1994 Dev. 20/21

1995 Dev. 20/21

1996 Dev. 20/21

1997 Dev. 20/21

1998 Dev. 20/21

1995 Dev. 19/20 112,169,138 113,184,751 1.009 1.015

1996 Dev. 19/20 123,674,839 123,313,110 0.997 1.003

1997 Dev. 19/20 143,422,123 144,428,663 1.007 1.012

1998 Dev. 19/20 150,281,347 150,937,545 1.004 1.010

1999 Dev. 19/20 149,968,353 149,200,112 0.995 1.000

Adjusted







Mid 3 of 5 1.008 1.064




Page 48

6.3% Percentage of losses assumed to be in the Fund Re-opened Case Fund Adjustment October 2020 Loss Cost Revision

1.0957 Impact Large Deductible Only: Policy Year Medical Paid + Case Development Exhibit CC

6.3% Target Impact 4.7% Sheet 3D

ORIGINAL TRIANGLEPY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

1995 1.009 1.058

1996 1.008 0.997 1.058

1997 0.998 1.000 1.007 1.058

1998 1.019 1.004 1.005 1.004 1.058

1999 0.991 0.988 1.004 0.996 0.995 1.058

2000 1.007 1.001 1.001 1.005 0.894

2001 1.032 1.007 0.958 1.064 0.992

2002 1.002 1.018 1.008 1.012 0.996

2003 1.021 1.002 1.007 0.996 1.000

2004 1.009 1.009 1.015 1.011 1.004

2005 1.022 1.013 1.011 1.014 0.998

2006 1.022 1.027 1.015 1.006 1.005

2007 1.030 1.030 1.010 1.008 0.995

2008 1.031 1.016 1.017 1.030 1.004

2009 1.045 1.023 1.028 1.012 1.006

2010 1.037 1.033 1.033 0.996 1.003

2011 1.084 1.070 1.022 1.033 1.008

2012 1.118 1.099 1.044 1.017 1.024

2013 1.216 1.132 1.038 1.052 1.049

2014 1.266 1.110 1.076 1.028

2015 1.245 1.116 1.070

2016 1.281 1.0902017 1.265

5 Year Average 1.255 1.113 1.073 1.046 1.033 1.029 1.016 1.017 1.019 1.010 1.008 1.008 1.013 1.004 0.992 1.013 1.001 0.981 1.002 1.058

RESTATED TRIANGLE POST MEDICAL FEE SCHEDULE & RE-OPENED CASE FUND ADJUSTMENTSPY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

% Losses affected 25.0% 45.0% 60.0% 70.0% 78.0% 83.0% 86.0% 88.0% 89.5% 91.0% 92.0% 93.0% 94.0% 100.0%

1995 1.015 1.064

1996 1.014 1.003 1.064

1997 1.003 1.005 1.012 1.064

1998 1.024 1.009 1.010 1.010 1.064

1999 0.996 0.993 1.010 1.001 1.000 1.064

2000 1.012 1.006 1.006 1.010 0.899

2001 1.037 1.012 0.963 1.069 0.997

2002 1.007 1.022 1.013 1.017 1.000

2003 1.024 1.005 1.011 1.000 1.004

2004 1.013 1.012 1.018 1.014 1.007

2005 1.025 1.015 1.013 1.016 1.000

2006 1.022 1.028 1.016 1.007 1.005

2007 1.030 1.030 1.010 1.008 0.995

2008 1.031 1.016 1.017 1.030 1.004

2009 1.045 1.023 1.028 1.012 1.006

2010 1.037 1.033 1.033 0.996 1.003

2011 1.084 1.070 1.022 1.033 1.008

2012 1.118 1.099 1.044 1.017 1.024

2013 1.216 1.132 1.038 1.052 1.049

2014 1.266 1.110 1.076 1.028

2015 1.245 1.116 1.070

2016 1.281 1.090

2017 1.265

5 Year Average 1.255 1.113 1.073 1.046 1.033 1.029 1.016 1.017 1.020 1.011 1.010 1.010 1.017 1.009 0.997 1.018 1.006 0.986 1.008 1.064

4 Year Average 1.264 1.112 1.071 1.049 1.030 1.028 1.012 1.015 1.019 1.011 1.007 1.011 1.012 1.008 0.997 1.017 1.007 0.979 1.006 1.064

3 Year Average 1.264 1.105 1.062 1.042 1.030 1.030 1.011 1.010 1.015 1.009 1.005 1.013 1.009 1.006 0.994 1.025 1.006 0.970 1.007 1.064

2 Year Average 1.273 1.103 1.073 1.040 1.033 1.028 1.002 1.007 1.018 1.006 1.001 1.011 1.007 1.003 1.010 1.034 1.004 0.950 1.005 1.064

Latest Year 1.265 1.090 1.070 1.028 1.049 1.024 1.008 1.003 1.006 1.004 0.995 1.005 1.000 1.007 1.004 1.000 0.997 0.899 1.000 1.064

Mid 3 of 5 1.259 1.115 1.077 1.045 1.033 1.029 1.018 1.017 1.021 1.012 1.011 1.010 1.016 1.010 1.002 1.010 1.007 1.005 1.008 1.064

5 Year UDF 2.008 1.600 1.438 1.340 1.281 1.240 1.205 1.186 1.166 1.143 1.131 1.120 1.109 1.090 1.080 1.083 1.064 1.058 1.073 1.064

Page 49


Exhibit CC

Sheet 4A

Policy


2005 Dev. 9/10 302,297,302 313,972,690 1.039 1.040

2006 Dev. 9/10 303,966,284 314,753,249 1.035 1.037

2007 Dev. 9/10 341,854,022 352,241,757 1.030 1.031

2008 Dev. 9/10 356,696,398 366,027,848 1.026 1.026

2009 Dev. 9/10 406,166,251 413,167,214 1.017 1.017

2006 Dev. 8/9 290,234,425 304,093,233 1.048 1.050

2007 Dev. 8/9 324,788,486 341,854,022 1.053 1.054

2008 Dev. 8/9 346,000,983 356,696,398 1.031 1.031

2009 Dev. 8/9 394,961,609 406,166,251 1.028 1.028

2010 Dev. 8/9 404,219,465 424,883,081 1.051 1.051

2007 Dev. 7/8 310,867,141 326,230,959 1.049 1.050

2008 Dev. 7/8 329,261,483 346,001,363 1.051 1.051

2009 Dev. 7/8 380,561,687 394,961,609 1.038 1.038

2010 Dev. 7/8 392,533,547 406,247,615 1.035 1.035

2011 Dev. 7/8 489,518,044 506,042,430 1.034 1.034

2008 Dev. 6/7 312,585,115 331,521,127 1.061 1.061

2009 Dev. 6/7 361,807,196 383,271,524 1.059 1.059

2010 Dev. 6/7 372,281,734 392,533,547 1.054 1.054

2011 Dev. 6/7 467,855,077 492,095,387 1.052 1.052

2012 Dev. 6/7 562,901,221 588,959,014 1.046 1.046

2009 Dev. 5/6 332,558,880 363,822,118 1.094 1.094

2010 Dev. 5/6 347,570,967 376,154,713 1.082 1.082

2011 Dev. 5/6 433,205,144 467,855,077 1.080 1.080

2012 Dev. 5/6 523,954,240 563,697,077 1.076 1.076

2013 Dev. 5/6 580,375,730 620,444,582 1.069 1.069

2010 Dev. 4/5 307,839,597 349,134,182 1.134 1.134

2011 Dev. 4/5 387,638,400 436,065,930 1.125 1.125

2012 Dev. 4/5 462,915,997 523,954,240 1.132 1.132

2013 Dev. 4/5 522,827,304 580,657,081 1.111 1.111

2014 Dev. 4/5 593,865,201 662,213,278 1.115 1.115

2011 Dev. 3/4 318,349,994 389,233,379 1.223 1.223

2012 Dev. 3/4 376,549,774 463,725,444 1.232 1.232

2013 Dev. 3/4 427,789,227 522,827,304 1.222 1.222

2014 Dev. 3/4 496,055,723 594,293,712 1.198 1.198

2015 Dev. 3/4 528,024,703 634,229,620 1.201 1.201

2012 Dev. 2/3 253,792,158 377,827,352 1.489 1.489

2013 Dev. 2/3 284,810,364 427,894,781 1.502 1.502

2014 Dev. 2/3 330,672,085 496,055,723 1.500 1.500

2015 Dev. 2/3 364,262,082 528,389,104 1.451 1.451

2016 Dev. 2/3 391,017,685 563,711,433 1.442 1.442

2013 Dev. 1/2 132,609,114 286,094,618 2.157 2.157

2014 Dev. 1/2 155,399,989 331,208,163 2.131 2.131

2015 Dev. 1/2 170,024,325 364,262,082 2.142 2.142

2016 Dev. 1/2 186,030,619 391,695,733 2.106 2.106

2017 Dev. 1/2 195,395,260 402,552,932 2.060 2.060

Adjusted


5 Year Average 7.512 3.545 2.119 1.477 1.215 1.123 1.080 1.054 1.042 1.043 1.030

4 Year Average 7.345 3.481 2.110 1.474 1.213 1.121 1.077 1.053 1.040 1.041 1.028

3 Year Average 7.112 3.382 2.103 1.464 1.207 1.119 1.075 1.051 1.036 1.037 1.025

2 Year Average 6.778 3.254 2.083 1.447 1.200 1.113 1.073 1.049 1.035 1.040 1.022

Latest Year 6.578 3.193 2.060 1.442 1.201 1.115 1.069 1.046 1.034 1.051 1.017

Mid 3 of 5 7.600 3.575 2.126 1.480 1.215 1.124 1.079 1.055 1.041 1.044 1.031






Page 50


Exhibit CC

Sheet 4B

Policy


1996 Dev. 18/19 189,162,678 191,979,818 1.015 1.023

1997 Dev. 18/19 212,152,910 215,422,517 1.015 1.023

1998 Dev. 18/19 235,723,057 240,133,343 1.019 1.025

1999 Dev. 18/19 257,010,703 261,573,424 1.018 1.024

2000 Dev. 18/19 296,179,058 299,368,375 1.011 1.021

1997 Dev. 17/18 209,024,487 212,152,910 1.015 1.023

1998 Dev. 17/18 232,784,709 235,723,057 1.013 1.022

1999 Dev. 17/18 251,134,965 257,010,703 1.023 1.026

2000 Dev. 17/18 307,536,581 312,295,545 1.015 1.023

2001 Dev. 17/18 381,674,105 387,025,251 1.014 1.021

1998 Dev. 16/17 228,723,455 232,784,709 1.018 1.024

1999 Dev. 16/17 247,190,500 251,134,965 1.016 1.023

2000 Dev. 16/17 300,893,292 307,536,581 1.022 1.026

2001 Dev. 16/17 373,534,222 381,674,105 1.022 1.026

2002 Dev. 16/17 334,156,758 338,615,653 1.013 1.021

1999 Dev. 15/16 243,436,546 247,849,525 1.018 1.024

2000 Dev. 15/16 293,753,570 300,893,292 1.024 1.027

2001 Dev. 15/16 367,082,387 373,534,222 1.018 1.024

2002 Dev. 15/16 328,964,584 334,156,758 1.016 1.022

2003 Dev. 15/16 372,242,933 377,058,283 1.013 1.021

2000 Dev. 14/15 289,578,160 294,947,899 1.019 1.025

2001 Dev. 14/15 367,082,387 367,082,387 1.000 1.015

2002 Dev. 14/15 321,807,360 328,964,584 1.022 1.026

2003 Dev. 14/15 367,183,170 372,242,933 1.014 1.022

2004 Dev. 14/15 377,773,914 384,741,013 1.018 1.023

2001 Dev. 13/14 351,554,694 360,144,573 1.024 1.028

2002 Dev. 13/14 321,807,360 321,807,360 1.000 1.015

2003 Dev. 13/14 360,400,817 367,183,170 1.019 1.025

2004 Dev. 13/14 369,434,662 377,773,914 1.023 1.026

2005 Dev. 13/14 339,829,983 344,875,307 1.015 1.021

2002 Dev. 12/13 312,668,214 319,454,507 1.022 1.027

2003 Dev. 12/13 354,944,011 360,400,817 1.015 1.023

2004 Dev. 12/13 362,209,056 369,434,662 1.020 1.025

2005 Dev. 12/13 332,342,210 339,829,983 1.023 1.025

2006 Dev. 12/13 330,808,879 336,213,299 1.016 1.021

2003 Dev. 11/12 346,341,019 354,946,511 1.025 1.029

2004 Dev. 11/12 350,957,809 362,209,056 1.032 1.032

2005 Dev. 11/12 323,453,891 332,342,210 1.027 1.028

2006 Dev. 11/12 322,628,201 330,808,879 1.025 1.028

2007 Dev. 11/12 358,862,005 364,486,622 1.016 1.017

2004 Dev. 10/11 340,155,548 351,009,430 1.032 1.033

2005 Dev. 10/11 313,915,431 323,453,891 1.030 1.031

2006 Dev. 10/11 314,753,249 322,628,201 1.025 1.028

2007 Dev. 10/11 352,241,757 358,862,005 1.019 1.020

2008 Dev. 10/11 366,027,848 371,351,665 1.015 1.015

Adjusted


5 Year Average 1.025 1.027 1.024 1.023 1.022 1.023 1.024 1.023 1.023

4 Year Average 1.024 1.026 1.023 1.022 1.022 1.023 1.024 1.023 1.023

3 Year Average 1.021 1.024 1.024 1.024 1.024 1.022 1.024 1.023 1.023

2 Year Average 1.018 1.023 1.023 1.023 1.022 1.021 1.023 1.022 1.022

Latest Year 1.015 1.017 1.021 1.021 1.023 1.021 1.021 1.021 1.021

Mid 3 of 5 1.026 1.028 1.024 1.024 1.023 1.023 1.024 1.023 1.023




Page 51


Exhibit CC

Sheet 4C

Policy


1987 Dev. 27/28

1988 Dev. 27/28

1989 Dev. 27/28

1990 Dev. 27/28

1991 Dev. 27/28

1988 Dev. 26/27

1989 Dev. 26/27

1990 Dev. 26/27

1991 Dev. 26/27

1992 Dev. 26/27

1989 Dev. 25/26

1990 Dev. 25/26

1991 Dev. 25/26

1992 Dev. 25/26

1993 Dev. 25/26

1990 Dev. 24/25

1991 Dev. 24/25

1992 Dev. 24/25

1993 Dev. 24/25

1994 Dev. 24/25

1991 Dev. 23/24

1992 Dev. 23/24

1993 Dev. 23/24

1994 Dev. 23/24

1995 Dev. 23/24

1992 Dev. 22/23

1993 Dev. 22/23

1994 Dev. 22/23

1995 Dev. 22/23

1996 Dev. 22/23

1993 Dev. 21/22

1994 Dev. 21/22

1995 Dev. 21/22

1996 Dev. 21/22

1997 Dev. 21/22

1994 Dev. 20/21

1995 Dev. 20/21

1996 Dev. 20/21

1997 Dev. 20/21

1998 Dev. 20/21

1995 Dev. 19/20 206,088,017 209,616,810 1.017 1.024

1996 Dev. 19/20 191,979,818 194,672,913 1.014 1.022

1997 Dev. 19/20 215,422,517 218,733,232 1.015 1.023

1998 Dev. 19/20 240,133,343 244,211,268 1.017 1.024

1999 Dev. 19/20 255,272,434 259,064,946 1.015 1.023

Adjusted







Mid 3 of 5 1.023 1.093




Page 52


Exhibit CC

Sheet 4D

66.7% Non Sched out of PPD Duration Cap Adjustment

86.56% PPD out of Indemnity Large Deductible Only: Policy Year Indemnity Paid Development57.72% % impacted

ORIGINAL TRIANGLE

PY 1st to 2nd 2nd to 3rd 3rd to 4th 4th to 5th 5th to 6th 6th to 7th 7th to 8th 8th to 9th 9th to 10th 10th to 11th 11th to 12th 12th to 13th 13th to 14th 14th to 15th 15th to 16th 16th to 17th 17th to 18th 18th to 19th 19th to 20th 20th to Ultt

1995 1.017 1.169

1996 1.015 1.014 1.169

1997 1.015 1.015 1.015 1.169

1998 1.018 1.013 1.019 1.017 1.169

1999 1.018 1.016 1.023 1.018 1.015 1.169

2000 1.019 1.024 1.022 1.015 1.011

2001 1.024 1.000 1.018 1.022 1.014

2002 1.022 1.000 1.022 1.016 1.013

2003 1.025 1.015 1.019 1.014 1.013

2004 1.032 1.032 1.020 1.023 1.018

2005 1.039 1.030 1.027 1.023 1.015

2006 1.048 1.035 1.025 1.025 1.016

2007 1.049 1.053 1.030 1.019 1.016

2008 1.061 1.051 1.031 1.026 1.015

2009 1.094 1.059 1.038 1.028 1.017

2010 1.134 1.082 1.054 1.035 1.051

2011 1.223 1.125 1.080 1.052 1.034

2012 1.489 1.232 1.132 1.076 1.046

2013 2.157 1.502 1.222 1.111 1.069

2014 2.131 1.500 1.198 1.115

2015 2.142 1.451 1.201

2016 2.106 1.442

2017 2.060

5 Year Average 2.119 1.477 1.215 1.123 1.080 1.054 1.041 1.042 1.029 1.024 1.025 1.019 1.016 1.015 1.018 1.018 1.016 1.016 1.016 1.169

RESTATED TRIANGLE POST DURATION CAP ADJUSTMENT

PY 1st to 2nd 2nd to 3rd 3rd to 4th 4th to 5th 5th to 6th 6th to 7th 7th to 8th 8th to 9th 9th to 10th 10th to 11th 11th to 12th 12th to 13th 13th to 14th 14th to 15th 15th to 16th 16th to 17th 17th to 18th 18th to 19th 19th to 20th 20th to ULT

% Cases affected 0 0 0 2 5 15 25 40 55 70 75 80 85 90 95 95 95 95 95 95

1995 1.008 1.076

1996 1.007 1.006 1.076

1997 1.007 1.007 1.007 1.076

1998 1.008 1.006 1.009 1.008 1.076

1999 1.008 1.007 1.010 1.008 1.007 1.076

2000 1.009 1.011 1.010 1.007 1.005

2001 1.012 1.000 1.008 1.010 1.006

2002 1.012 1.000 1.011 1.007 1.006

2003 1.014 1.008 1.010 1.007 1.006

2004 1.019 1.018 1.011 1.012 1.009

2005 1.027 1.018 1.015 1.012 1.008

2006 1.040 1.027 1.018 1.018 1.011

2007 1.049 1.053 1.030 1.019 1.016

2008 1.061 1.051 1.031 1.026 1.015

2009 1.094 1.059 1.038 1.028 1.017

2010 1.134 1.082 1.054 1.035 1.051

2011 1.223 1.125 1.080 1.052 1.034

2012 1.489 1.232 1.132 1.076 1.046

2013 2.157 1.502 1.222 1.111 1.069

2014 2.131 1.500 1.198 1.115

2015 2.142 1.451 1.201

2016 2.106 1.442

2017 2.060

5 Year Average 2.119 1.477 1.215 1.123 1.080 1.054 1.041 1.041 1.025 1.018 1.016 1.011 1.008 1.007 1.008 1.008 1.007 1.007 1.007 1.076

Page 53


Exhibit CC

Sheet 4E

5.8% Percentage of claims assumed to be in the SDF Special Disability Fund Adjustment

1.188 Impact Large Deductible Only: Policy Year Indemnity Paid Development17.80% Target Impact 9.3%

TRIANGLE POST DURATION CAP ADJUSTMENT


1995 1.008 1.076

1996 1.007 1.006 1.076

1997 1.007 1.007 1.007 1.076

1998 1.008 1.006 1.009 1.008 1.076

1999 1.008 1.007 1.010 1.008 1.007 1.076

2000 1.009 1.011 1.010 1.007 1.005

2001 1.012 1.000 1.008 1.010 1.006

2002 1.012 1.000 1.011 1.007 1.006

2003 1.014 1.008 1.010 1.007 1.006

2004 1.019 1.018 1.011 1.012 1.009

2005 1.027 1.018 1.015 1.012 1.008

2006 1.040 1.027 1.018 1.018 1.011

2007 1.049 1.053 1.030 1.019 1.016

2008 1.061 1.051 1.031 1.026 1.015

2009 1.094 1.059 1.038 1.028 1.017

2010 1.134 1.082 1.054 1.035 1.051

2011 1.223 1.125 1.080 1.052 1.034

2012 1.489 1.232 1.132 1.076 1.046

2013 2.157 1.502 1.222 1.111 1.069

2014 2.131 1.500 1.198 1.115

2015 2.142 1.451 1.201

2016 2.106 1.442

2017 2.060

5 Year Average 2.119 1.477 1.215 1.123 1.080 1.054 1.041 1.041 1.025 1.018 1.016 1.011 1.008 1.007 1.008 1.008 1.007 1.007 1.007 1.076

RESTATED TRIANGLE POST DURATION CAP + SDF ADJUSTMENTS


% Cases affected 0 0 0 44.3% 60.1% 74.9% 84.2% 90.3% 94.2% 96.6% 98.2% 99.1% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

1995 1.019 1.088

1996 1.018 1.017 1.088

1997 1.018 1.018 1.018 1.088

1998 1.019 1.017 1.020 1.019 1.088

1999 1.019 1.018 1.021 1.019 1.018 1.088

2000 1.020 1.022 1.021 1.018 1.016

2001 1.023 1.011 1.019 1.021 1.017

2002 1.023 1.011 1.022 1.018 1.017

2003 1.025 1.019 1.021 1.018 1.017

2004 1.030 1.029 1.022 1.023 1.020

2005 1.038 1.029 1.026 1.023 1.019

2006 1.049 1.036 1.027 1.028 1.021

2007 1.050 1.054 1.031 1.020 1.017

2008 1.061 1.051 1.031 1.026 1.015

2009 1.094 1.059 1.038 1.028 1.017

2010 1.134 1.082 1.054 1.035 1.051

2011 1.223 1.125 1.080 1.052 1.034

2012 1.489 1.232 1.132 1.076 1.046

2013 2.157 1.502 1.222 1.111 1.069

2014 2.131 1.500 1.198 1.115

2015 2.142 1.451 1.201

2016 2.106 1.442

2017 2.060

1st/2nd 2nd/3rd 3rd/4th 4th/5th 5th/6th 6th/7th 7th/8th 8th/9th 9th/10th 10th/11th 11th/12th 12th/13th 13th/14th 14th/15th 15th/16th 16th/17th 17th/18th 18th/19th 19th/20th 20th/ULT

5 Year Average 2.119 1.477 1.215 1.123 1.080 1.054 1.042 1.043 1.030 1.024 1.025 1.021 1.019 1.018 1.019 1.019 1.018 1.018 1.018 1.088

4 Year Average 2.110 1.474 1.213 1.121 1.077 1.053 1.040 1.041 1.028 1.023 1.025 1.021 1.018 1.018 1.019 1.019 1.018 1.018 1.018 1.088

3 Year Average 2.103 1.464 1.207 1.119 1.075 1.051 1.036 1.037 1.025 1.021 1.024 1.022 1.021 1.020 1.018 1.020 1.019 1.018 1.018 1.088

2 Year Average 2.083 1.447 1.200 1.113 1.073 1.049 1.035 1.040 1.022 1.018 1.022 1.022 1.021 1.019 1.017 1.019 1.017 1.017 1.018 1.088

Latest Year 2.060 1.442 1.201 1.115 1.069 1.046 1.034 1.051 1.017 1.015 1.017 1.021 1.019 1.020 1.017 1.017 1.017 1.016 1.018 1.088

Mid 3 of 5 2.126 1.480 1.215 1.124 1.079 1.055 1.041 1.044 1.031 1.025 1.026 1.022 1.021 1.019 1.019 1.019 1.018 1.018 1.018 1.088

1st/Ult. 2nd/Ult. 3rd/Ult. 4th/Ult. 5th/Ult. 6th/Ult. 7th/Ult. 8th/Ult. 9th/Ult. 10th/Ult. 11th/Ult 12th/Ult 13th/Ult 14th/Ult 15th/Ult 16th/Ult 17th/Ult 18th/Ult 19th/Ult 20th/Ult

7.213 3.404 2.305 1.897 1.689 1.564 1.484 1.424 1.365 1.325 1.294 1.262 1.236 1.213 1.192 1.17 1.148 1.128 1.108 1.088

5 Year Average 2.119 1.477 1.215 1.123 1.080 1.054 1.042 1.043 1.030 1.024 1.025 1.021 1.019 1.018 1.019 1.019 1.018 1.018 1.018 1.088

Page 54



6.3% Target Impact 4.3% Sheet 4F

RESTATED TRIANGLE POST DURATION CAP + SDF ADJUSTMENTS

PY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

1995 1.019 1.088

1996 1.018 1.017 1.088

1997 1.018 1.018 1.018 1.088

1998 1.019 1.017 1.020 1.019 1.088

1999 1.019 1.018 1.021 1.019 1.018 1.088

2000 1.020 1.022 1.021 1.018 1.016

2001 1.023 1.011 1.019 1.021 1.017

2002 1.023 1.011 1.022 1.018 1.017

2003 1.025 1.019 1.021 1.018 1.017

2004 1.030 1.029 1.022 1.023 1.020

2005 1.038 1.029 1.026 1.023 1.019

2006 1.049 1.036 1.027 1.028 1.021

2007 1.050 1.054 1.031 1.020 1.017

2008 1.061 1.051 1.031 1.026 1.015

2009 1.094 1.059 1.038 1.028 1.017

2010 1.134 1.082 1.054 1.035 1.051

2011 1.223 1.125 1.080 1.052 1.034

2012 1.489 1.232 1.132 1.076 1.046

2013 2.157 1.502 1.222 1.111 1.069

2014 2.131 1.500 1.198 1.115

2015 2.142 1.451 1.201

2016 2.106 1.442

2017 2.060

5 Year Average 2.119 1.477 1.215 1.123 1.080 1.054 1.042 1.043 1.030 1.024 1.025 1.021 1.019 1.018 1.019 1.019 1.018 1.018 1.018 1.088

RESTATED TRIANGLE POST DURATION CAP + SDF + RE-OPENED CASE FUND ADJUSTMENTs

PY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

% Losses affected 25.0% 45.0% 60.0% 70.0% 78.0% 83.0% 86.0% 88.0% 89.5% 91.0% 92.0% 93.0% 94.0% 100.0%

1995 1.024 1.093

1996 1.023 1.022 1.093

1997 1.023 1.023 1.023 1.093

1998 1.024 1.022 1.025 1.024 1.093

1999 1.024 1.023 1.026 1.024 1.023 1.093

2000 1.025 1.027 1.026 1.023 1.021

2001 1.028 1.015 1.024 1.026 1.021

2002 1.027 1.015 1.026 1.022 1.021

2003 1.029 1.023 1.025 1.022 1.021

2004 1.033 1.032 1.025 1.026 1.023

2005 1.040 1.031 1.028 1.025 1.021

2006 1.050 1.037 1.028 1.028 1.021

2007 1.050 1.054 1.031 1.020 1.017

2008 1.061 1.051 1.031 1.026 1.015

2009 1.094 1.059 1.038 1.028 1.017

2010 1.134 1.082 1.054 1.035 1.051

2011 1.223 1.125 1.080 1.052 1.034

2012 1.489 1.232 1.132 1.076 1.046

2013 2.157 1.502 1.222 1.111 1.069

2014 2.131 1.500 1.198 1.115

2015 2.142 1.451 1.201

2016 2.106 1.442

2017 2.060

5 Year Average 2.119 1.477 1.215 1.123 1.080 1.054 1.042 1.043 1.030 1.025 1.027 1.024 1.023 1.022 1.023 1.024 1.023 1.023 1.023 1.093

4 Year Average 2.110 1.474 1.213 1.121 1.077 1.053 1.040 1.041 1.028 1.024 1.026 1.023 1.022 1.022 1.023 1.024 1.023 1.023 1.023 1.093

3 Year Average 2.103 1.464 1.207 1.119 1.075 1.051 1.036 1.037 1.025 1.021 1.024 1.024 1.024 1.024 1.022 1.024 1.023 1.023 1.023 1.093

2 Year Average 2.083 1.447 1.200 1.113 1.073 1.049 1.035 1.040 1.022 1.018 1.023 1.023 1.023 1.022 1.021 1.023 1.022 1.022 1.023 1.093

Latest Year 2.060 1.442 1.201 1.115 1.069 1.046 1.034 1.051 1.017 1.015 1.017 1.021 1.021 1.023 1.021 1.021 1.021 1.021 1.023 1.093

Mid 3 of 5 2.126 1.480 1.215 1.124 1.079 1.055 1.041 1.044 1.031 1.026 1.028 1.024 1.024 1.023 1.023 1.024 1.023 1.023 1.023 1.093

5 Year UDF 7.512 3.545 2.400 1.975 1.759 1.629 1.546 1.484 1.423 1.382 1.348 1.313 1.282 1.253 1.226 1.198 1.170 1.144 1.118 1.093

Page 55


Exhibit CC

Sheet 5A

Policy


2005 Dev. 9/10 206,906,085 213,160,992 1.030 1.033

2006 Dev. 9/10 208,495,914 214,453,158 1.029 1.029

2007 Dev. 9/10 217,527,212 224,506,107 1.032 1.032

2008 Dev. 9/10 214,630,634 222,720,478 1.038 1.038

2009 Dev. 9/10 235,224,702 239,447,277 1.018 1.018

2006 Dev. 8/9 202,249,563 208,600,308 1.031 1.032

2007 Dev. 8/9 208,333,405 217,527,212 1.044 1.044

2008 Dev. 8/9 208,247,952 214,630,634 1.031 1.031

2009 Dev. 8/9 229,237,438 235,224,702 1.026 1.026

2010 Dev. 8/9 223,881,689 228,381,545 1.020 1.020

2007 Dev. 7/8 201,349,263 210,042,887 1.043 1.043

2008 Dev. 7/8 199,823,641 208,253,972 1.042 1.042

2009 Dev. 7/8 220,884,012 229,237,438 1.038 1.038

2010 Dev. 7/8 219,487,582 224,805,280 1.024 1.024

2011 Dev. 7/8 257,386,640 265,128,780 1.030 1.030

2008 Dev. 6/7 191,796,284 201,169,453 1.049 1.049

2009 Dev. 6/7 213,004,340 223,699,960 1.050 1.050

2010 Dev. 6/7 210,664,919 219,487,582 1.042 1.042

2011 Dev. 6/7 248,336,682 258,709,173 1.042 1.042

2012 Dev. 6/7 288,078,182 299,363,302 1.039 1.039

2009 Dev. 5/6 202,257,037 214,442,069 1.060 1.060

2010 Dev. 5/6 200,924,449 213,432,380 1.062 1.062

2011 Dev. 5/6 232,964,304 248,336,066 1.066 1.066

2012 Dev. 5/6 275,857,716 288,451,788 1.046 1.046

2013 Dev. 5/6 288,400,912 302,486,818 1.049 1.049

2010 Dev. 4/5 188,415,485 202,389,231 1.074 1.074

2011 Dev. 4/5 215,614,811 235,561,401 1.093 1.093

2012 Dev. 4/5 255,246,671 275,857,716 1.081 1.081

2013 Dev. 4/5 268,816,364 288,578,586 1.074 1.074

2014 Dev. 4/5 300,617,122 321,126,626 1.068 1.068

2011 Dev. 3/4 191,470,214 217,196,912 1.134 1.134

2012 Dev. 3/4 226,648,547 255,751,715 1.128 1.128

2013 Dev. 3/4 239,944,201 268,816,364 1.120 1.120

2014 Dev. 3/4 269,225,523 300,709,668 1.117 1.117

2015 Dev. 3/4 281,513,970 315,764,603 1.122 1.122

2012 Dev. 2/3 188,952,829 227,723,171 1.205 1.205

2013 Dev. 2/3 197,732,577 240,022,030 1.214 1.214

2014 Dev. 2/3 221,965,950 269,225,523 1.213 1.213

2015 Dev. 2/3 234,706,392 281,841,492 1.201 1.201

2016 Dev. 2/3 254,634,264 308,693,405 1.212 1.212

2013 Dev. 1/2 132,922,179 199,078,096 1.498

2014 Dev. 1/2 144,224,968 222,455,907 1.542 1.542

2015 Dev. 1/2 151,558,093 234,706,392 1.549 1.549

2016 Dev. 1/2 166,743,715 255,284,288 1.531 1.531

2017 Dev. 1/2 166,872,373 264,267,180 1.584 1.584

Adjusted


5 Year Average 3.851 2.499 1.541 1.209 1.124 1.078 1.057 1.044 1.035 1.031 1.030

4 Year Average 3.842 2.477 1.551 1.210 1.122 1.079 1.056 1.043 1.034 1.030 1.029

3 Year Average 3.823 2.460 1.554 1.209 1.120 1.074 1.053 1.041 1.031 1.026 1.029

2 Year Average 3.679 2.363 1.557 1.207 1.119 1.071 1.047 1.040 1.027 1.023 1.028

Latest Year 3.625 2.289 1.584 1.212 1.122 1.068 1.049 1.039 1.030 1.020 1.018

Mid 3 of 5 3.854 2.501 1.541 1.210 1.123 1.076 1.057 1.044 1.037 1.030 1.031






Page 56


Exhibit CC

Sheet 5B

Policy


1996 Dev. 18/19 108,226,641 109,724,208 1.014 1.019

1997 Dev. 18/19 115,437,977 116,897,207 1.013 1.018

1998 Dev. 18/19 128,646,327 130,563,721 1.015 1.020

1999 Dev. 18/19 138,443,145 139,600,585 1.008 1.014

2000 Dev. 18/19 175,636,773 177,139,597 1.009 1.014

1997 Dev. 17/18 114,146,651 115,437,977 1.011 1.017

1998 Dev. 17/18 127,015,934 128,646,327 1.013 1.018

1999 Dev. 17/18 135,997,232 138,443,145 1.018 1.023

2000 Dev. 17/18 177,127,183 179,587,635 1.014 1.019

2001 Dev. 17/18 222,445,881 225,504,401 1.014 1.019

1998 Dev. 16/17 124,755,671 127,015,934 1.018 1.024

1999 Dev. 16/17 135,407,450 135,997,232 1.004 1.010

2000 Dev. 16/17 174,496,266 177,127,183 1.015 1.020

2001 Dev. 16/17 216,611,694 222,445,881 1.027 1.032

2002 Dev. 16/17 194,532,409 196,353,632 1.009 1.014

1999 Dev. 15/16 134,921,379 135,867,583 1.007 1.012

2000 Dev. 15/16 171,446,642 174,496,266 1.018 1.023

2001 Dev. 15/16 210,715,313 216,611,694 1.028 1.033

2002 Dev. 15/16 191,746,813 194,532,409 1.015 1.019

2003 Dev. 15/16 228,296,948 230,569,578 1.010 1.014

2000 Dev. 14/15 170,348,105 172,208,483 1.011 1.016

2001 Dev. 14/15 210,715,313 210,715,313 1.000 1.005

2002 Dev. 14/15 188,274,379 191,746,813 1.018 1.023

2003 Dev. 14/15 225,437,535 228,296,948 1.013 1.017

2004 Dev. 14/15 240,666,801 243,870,080 1.013 1.016

2001 Dev. 13/14 202,934,320 207,273,033 1.021 1.026

2002 Dev. 13/14 188,274,379 188,274,379 1.000 1.004

2003 Dev. 13/14 222,012,451 225,437,535 1.015 1.019

2004 Dev. 13/14 236,425,882 240,666,801 1.018 1.021

2005 Dev. 13/14 226,275,384 228,663,196 1.011 1.013

2002 Dev. 12/13 183,947,891 186,990,015 1.017 1.021

2003 Dev. 12/13 220,781,445 222,012,451 1.006 1.009

2004 Dev. 12/13 231,381,457 236,425,882 1.022 1.025

2005 Dev. 12/13 222,189,593 226,275,384 1.018 1.021

2006 Dev. 12/13 225,173,479 228,325,907 1.014 1.014

2003 Dev. 11/12 215,736,823 220,790,540 1.023 1.027

2004 Dev. 11/12 226,156,107 231,381,457 1.023 1.026

2005 Dev. 11/12 217,493,828 222,189,593 1.022 1.024

2006 Dev. 11/12 221,076,203 225,173,479 1.019 1.019

2007 Dev. 11/12 229,537,769 233,569,845 1.018 1.018

2004 Dev. 10/11 220,104,161 226,167,145 1.028 1.031

2005 Dev. 10/11 213,087,437 217,493,828 1.021 1.023

2006 Dev. 10/11 214,453,158 221,076,203 1.031 1.032

2007 Dev. 10/11 224,506,107 229,537,769 1.022 1.022

2008 Dev. 10/11 222,720,478 227,025,609 1.019 1.019

Adjusted


5 Year Average 1.025 1.023 1.018 1.017 1.015 1.020 1.020 1.019 1.017

4 Year Average 1.024 1.022 1.017 1.014 1.015 1.022 1.019 1.020 1.016

3 Year Average 1.024 1.020 1.020 1.018 1.019 1.022 1.022 1.020 1.016

2 Year Average 1.021 1.018 1.017 1.017 1.016 1.016 1.023 1.019 1.014

Latest Year 1.019 1.018 1.014 1.013 1.016 1.014 1.014 1.019 1.014

Mid 3 of 5 1.025 1.023 1.019 1.018 1.016 1.019 1.019 1.019 1.017




Page 57


Exhibit CC

Sheet 5C

Policy


1987 Dev. 27/28

1988 Dev. 27/28

1989 Dev. 27/28

1990 Dev. 27/28

1991 Dev. 27/28

1988 Dev. 26/27

1989 Dev. 26/27

1990 Dev. 26/27

1991 Dev. 26/27

1992 Dev. 26/27

1989 Dev. 25/26

1990 Dev. 25/26

1991 Dev. 25/26

1992 Dev. 25/26

1993 Dev. 25/26

1990 Dev. 24/25

1991 Dev. 24/25

1992 Dev. 24/25

1993 Dev. 24/25

1994 Dev. 24/25

1991 Dev. 23/24

1992 Dev. 23/24

1993 Dev. 23/24

1994 Dev. 23/24

1995 Dev. 23/24

1992 Dev. 22/23

1993 Dev. 22/23

1994 Dev. 22/23

1995 Dev. 22/23

1996 Dev. 22/23

1993 Dev. 21/22

1994 Dev. 21/22

1995 Dev. 21/22

1996 Dev. 21/22

1997 Dev. 21/22

1994 Dev. 20/21

1995 Dev. 20/21

1996 Dev. 20/21

1997 Dev. 20/21

1998 Dev. 20/21

1995 Dev. 19/20 99,271,295 100,120,779 1.009 1.014

1996 Dev. 19/20 109,724,208 111,126,589 1.013 1.018

1997 Dev. 19/20 116,897,207 118,416,639 1.013 1.018

1998 Dev. 19/20 130,563,721 133,234,567 1.020 1.026

1999 Dev. 19/20 136,449,127 137,162,164 1.005 1.010

Adjusted







Mid 3 of 5 1.017 1.164




Page 58


1.0957 Impact Large Deductible Only: Policy Year Indemnity Paid Development Exhibit CC

6.3% Target Impact 4.6% Sheet 5D

ORIGINAL TRIANGLE

PY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

1995 1.009 1.158

1996 1.014 1.013 1.158

1997 1.011 1.013 1.013 1.158

1998 1.018 1.013 1.015 1.020 1.158

1999 1.007 1.004 1.018 1.008 1.005 1.158

2000 1.011 1.018 1.015 1.014 1.009

2001 1.021 1.000 1.028 1.027 1.014

2002 1.017 1.000 1.018 1.015 1.009

2003 1.023 1.006 1.015 1.013 1.010

2004 1.028 1.023 1.022 1.018 1.013

2005 1.030 1.021 1.022 1.018 1.011

2006 1.031 1.029 1.031 1.019 1.014

2007 1.043 1.044 1.032 1.022 1.018

2008 1.049 1.042 1.031 1.038 1.019

2009 1.060 1.050 1.038 1.026 1.018

2010 1.074 1.062 1.042 1.024 1.020

2011 1.134 1.093 1.066 1.042 1.030

2012 1.205 1.128 1.081 1.046 1.039

2013 1.498 1.214 1.120 1.074 1.049

2014 1.542 1.213 1.117 1.068

2015 1.549 1.201 1.122

2016 1.531 1.212

2017 1.584

5 Year Average 1.541 1.209 1.124 1.078 1.057 1.044 1.035 1.030 1.029 1.024 1.021 1.015 1.013 1.011 1.015 1.015 1.014 1.012 1.012 1.158

RESTATED TRIANGLE POST MSF + RE-OPENED CASE FUND ADJUSTMENTs

PY 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-ULT

% Losses affected 25.0% 45.0% 60.0% 70.0% 78.0% 83.0% 86.0% 88.0% 89.5% 91.0% 92.0% 93.0% 94.0% 100.0%

1995 1.014 1.164

1996 1.019 1.018 1.164

1997 1.017 1.018 1.018 1.164

1998 1.024 1.018 1.020 1.026 1.164

1999 1.012 1.010 1.023 1.014 1.010 1.164

2000 1.016 1.023 1.020 1.019 1.014

2001 1.026 1.005 1.033 1.032 1.019

2002 1.021 1.004 1.023 1.019 1.014

2003 1.027 1.009 1.019 1.017 1.014

2004 1.031 1.026 1.025 1.021 1.016

2005 1.033 1.023 1.024 1.021 1.013

2006 1.032 1.029 1.032 1.019 1.014

2007 1.043 1.044 1.032 1.022 1.018

2008 1.049 1.042 1.031 1.038 1.019

2009 1.060 1.050 1.038 1.026 1.018

2010 1.074 1.062 1.042 1.024 1.020

2011 1.134 1.093 1.066 1.042 1.030

2012 1.205 1.128 1.081 1.046 1.039

2013 1.498 1.214 1.120 1.074 1.049

2014 1.542 1.213 1.117 1.068

2015 1.549 1.201 1.122

2016 1.531 1.212

2017 1.584

5 Year Average 1.541 1.209 1.124 1.078 1.057 1.044 1.035 1.031 1.030 1.025 1.023 1.018 1.017 1.015 1.020 1.020 1.019 1.017 1.017 1.164

4 Year Average 1.551 1.210 1.122 1.079 1.056 1.043 1.034 1.030 1.029 1.024 1.022 1.017 1.014 1.015 1.022 1.019 1.020 1.016 1.018 1.164

3 Year Average 1.554 1.209 1.120 1.074 1.053 1.041 1.031 1.026 1.029 1.024 1.020 1.020 1.018 1.019 1.022 1.022 1.020 1.016 1.018 1.164

2 Year Average 1.557 1.207 1.119 1.071 1.047 1.040 1.027 1.023 1.028 1.021 1.018 1.017 1.017 1.016 1.016 1.023 1.019 1.014 1.018 1.164

Latest Year 1.584 1.212 1.122 1.068 1.049 1.039 1.030 1.020 1.018 1.019 1.018 1.014 1.013 1.016 1.014 1.014 1.019 1.014 1.010 1.164

Mid 3 of 5 1.541 1.210 1.123 1.076 1.057 1.044 1.037 1.030 1.031 1.025 1.023 1.019 1.018 1.016 1.019 1.019 1.019 1.017 1.017 1.164

5 Year UDF 3.851 2.499 2.067 1.839 1.706 1.614 1.546 1.494 1.449 1.407 1.373 1.342 1.318 1.296 1.277 1.252 1.227 1.204 1.184 1.164

Page 59

October 2020 Loss Cost RevisionExhibit EE

Sheet 1

Trend AnalysisClaim Frequency - All Carriers Excluding Large Deductible Experience

Frequency = developed claim counts per 1,000,000 of onleveled premium adjusted for wage growth

Financial DataPolicy Year Claim Frequency

PY2014 9.8062015 9.7812016 9.5132017 9.6222018 9.451

Trend R squared2014-2018 -0.9% 0.759

9.200

9.400

9.600

9.800

10.000

10.200

2014 2015 2016 2017 2018

Freq

uenc

y Pe

r Mill

ion

Dolla

rs o

f Sta

ndar

d Pr

emiu

m a

t DSR

Lev

el

PY Financial Data 5-Year Trend

Page 60


Sheet 2

Trend AnalysisIndemnity Severity - All Carriers Excluding Large Deductible Experience

Financial Data

PY2014 51,5162015 49,7262016 51,6022017 54,4892018 60,049

Trend R squared2014-2018 4.1% 0.726

Policy Year Average Indemnity Claim Severity

40,000

45,000

50,000

55,000

60,000

65,000

2014 2015 2016 2017 2018

Inde

mni

ty C

laim

Sev

erity


Page 61

October 2020 Loss Cost RevisionExhibit EESheet 3a

Trend AnalysisMedical Severity - All Carriers Excluding Large Deductible Experience

Financial Data

PY2014 32,2442015 30,7562016 30,0162017 32,0832018 31,332

Trend R squared2014-2018 -0.2% 0.007

Policy Year Average Medical Claim Severity

29,000

30,000

31,000

32,000

33,000

34,000

2014 2015 2016 2017 2018

Med

ical

Cla

im S

ever

ity


Page 62

October 2020 Loss Cost RevisionExhibit EESheet 3b

Chain WeightedCalendar Personal Health Care YoY Paid Cumulative Payout

Year Index Change Maturity UDF % Paid Pattern(1) (2) (3) (4) (5) (6) (7) (8)

2012 100.0 2017 2018 20202013 101.5 1.5% 2018 107.7 2019 109.3 2021 115.8 1st to Ult 3.424 29.2% 29%2014 102.9 1.4% 2019 109.3 2020 111.3 2022 118.7 2nd to Ult 2.268 44.1% 15%2015 103.5 0.6% 2020 111.3 2021 113.7 2023 121.7 3rd to Ult 1.890 52.9% 9%2016 104.8 1.3% 2021 113.7 2022 116.5 2024 124.8 4th to Ult 1.706 58.6% 6%2017 106.1 1.2% 2022 116.5 2023 119.4 2025 128.2 5th to Ult 1.602 62.4% 4%2018 107.7 1.5% 2023 119.4 2024 122.4 2026 131.7 6th to Ult 1.534 65.2% 3%2019 109.3 1.5% 2024 122.4 2025 125.6 2027 135.4 7th to Ult 1.488 67.2% 2%2020 111.3 1.8% 2025 125.6 2026 129.0 2028 139.2 8th to Ult 1.446 69.2% 2%2021 113.7 2.2% 2026 129.0 2027 132.6 2029 143.1 9th to Ult 1.413 70.8% 2%2022 116.5 2.5% 2027 132.6 2028 136.3 2030 147.1 10th to Ult 1.382 72.4% 2%2023 119.4 2.5% 2028 136.3 2029 140.1 2031 151.2 11th to Ult 1.353 73.9% 2%2024 122.4 2.5% 2029 140.1 2030 144.0 2032 155.4 12th to Ult 1.324 75.5% 2%2025 125.6 2.6% 2030 144.0 2031 148.0 2033 159.8 13th to Ult 1.296 77.2% 2%2026 129.0 2.7% 2031 148.0 2032 152.1 2034 164.3 14th to Ult 1.272 78.6% 1%2027 132.6 2.8% 2032 152.1 2033 156.4 2035 168.9 15th to Ult 1.251 79.9% 1%2028 136.3 2.8% 2033 156.4 2034 160.8 2036 173.6 16th to Ult 1.231 81.2% 1%2029 2.8% 2034 160.8 2035 165.3 2037 178.5 17th to Ult 1.213 82.4% 1%

2035 165.3 2036 169.9 2038 183.5 18th to Ult 1.194 83.8% 1%2036 169.9 2037 174.7 2039 188.6 19th to Ult 1.178 84.9% 1%2037 174.7 2038 179.6 2040 193.9 20th to Ult 1.162 86.1% 1%2038 179.6 2039 184.6 2041 199.3 100.0% 14%

Weighted 126.9 Weighted 129.8 Weighted 139.0128.4 139.0

7/1/2018 10/1/2021

Change in CWPHC 8.3%Annualized Medical Trend 2.5%

Notes:(1) Published by CMS on March 31, 2020 (6) Implied Adjusted Ultimate Paid Development Factors - All Carriers Excl LD(2) Year over Year Change, Assumes YoY Change at 2.8% beyond 2029 (7) = 1.0 / (6)

(3), (4) CWPHC Index Weighted by Column (8) (8) Incremental % Paid(5) Interpolated CWPHC for 10/1


Determination of Prospective Medical Severity Trend

Weighted CWPHC Index All Carriers - Excluding Large DeductibleExperience Period Forecast Period

PY 2017 PY 2018 10/1/2020-2021

Average Accident DateAverage Weighted

Page 63


Sheet 4

Actual * Exponential Linear

2015 1,296.48 1,283.11 1,281.642016 1,305.92 1,321.46 1,321.912017 1,357.11 1,360.95 1,362.172018 1,401.17 1,401.62 1,402.432019 1,450.17 1,443.50 1,442.70

Projected Average Annual Change 3.0% 2.9%

R Squared 0.969 0.967

Employment Total Wages Average Wages Projected AWW

2020 1.1% 4.0% 2.9% 1,492.222021 0.9% 3.8% 2.9% 1,535.50

Total AnnualizedProjected change 2017 - 2021 13.1% 3.1%Projected change 2018 - 2021 9.6% 3.1%

Selected Annual Wage Trend 3.1%

* Average weekly wages from N.Y. Department of Labor for all industries** Based on the New York State Assembly's 2020 Economic Report

Projected Economic Changes **

Fitted Regression LinesExperience Period


Analysis of New York Average Wage Trends

New York Average Weekly Wage

Page 64


Exhibit GG

Sheet 1

Maximum @ July 1, 2020 = 2/3 SAWW Per Week

1 Injury Type Permanent Total Perm Partial - Major Perm Partial - Minor Temporary

Current Proposed Current Proposed Current Proposed Current Proposed Current Proposed

2 Effective Date July 1, 2019 July 1, 2020 July 1, 2019 July 1, 2020 July 1, 2019 July 1, 2020 July 1, 2019 July 1, 2020 July 1, 2019 July 1, 2020

3 % Compensation 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667

4 Minimum Comp $30.00 $30.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00

5 Maximum Comp $934.11 $966.78 $934.11 $966.78 $934.11 $966.78 $934.11 $966.78 $934.11 $966.78

6 Eff Wkly Wage for Min (4)/ (3) $45.00 $45.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00

7 Eff Wkly Wage for Max (5)/ (3) $1,401.17 $1,450.17 $1,401.17 $1,450.17 $1,401.17 $1,450.17 $1,401.17 $1,450.17 $1,401.17 $1,450.17

8 Avg Weekly Wage $1,713.58 $1,713.58 $1,713.58 $1,713.58 $703.62 $703.62 ** $703.62 $703.62 ** $1,713.58 $1,713.58

9 Ratio to Avg -Min- (6)/(8) 0.03 0.03 0.13 0.13 0.32 0.32 0.32 0.32 0.13 0.13

10 Ratio to Avg -Max- (7)/(8) 0.82 0.85 0.82 0.85 1.99 2.06 1.99 2.06 0.82 0.85

11 "B" Value for (9) 0.0022 0.0022 0.0705 0.0705 1.0639 1.0639 1.0639 1.0639 0.0705 0.0705

12 "B" Value for (10) 24.7822 27.0409 24.7822 27.0409 85.7837 87.3709 85.7837 87.3709 24.7822 27.0409

13 Difference (12) - (11) 24.7800 27.0387 24.7117 26.9704 84.7199 86.3071 84.7199 86.3071 24.7117 26.9704

14 "A" Value for (9) 0.1346 0.1346 0.9387 0.9387 5.0430 5.0430 5.0430 5.0430 0.9387 0.9387

15 "A" Value for (10) 44.3959 47.1012 44.3959 47.1012 94.2593 95.0433 94.2593 95.0433 44.3959 47.1012

16 Difference 100 - (15) 55.6041 52.8988 55.6041 52.8988 5.7407 4.9567 5.7407 4.9567 55.6041 52.8988

17 (9) x (14) 0.0040 0.0040 0.1220 0.1220 1.6138 1.6138 1.6138 1.6138 0.1220 0.1220

18 Product (10 )x (16) 45.5954 44.9640 45.5954 44.9640 11.4241 10.2107 11.4241 10.2107 45.5954 44.9640

19 'Limit' Factor {(13) + (17) + (18) 70.3794 72.0068 70.4290 72.0564 97.7577 98.1316 97.7577 98.1316 70.4290 72.0564

20 Eff. Avg. Weekly Wage (8) x (19) $1,206.01 $1,233.89 $1,206.86 $1,234.74 $687.84 $690.47 $687.84 $690.47 $1,206.86 $1,234.74

21 Average Weekly Benefit $804.00 $822.59 $804.57 $823.16 $458.56 $460.32 $458.56 $460.32 $804.57 $823.16

22 Indicated Change in Costs - 2.3% - 2.3% - 0.4% - 0.4% - 2.3%

** PPD average wage adjusted for average % disability rating.

New York Incurred Losses * July 1, 2019 Benefit Change July 1, 2020

Death $393,637,532 2.3% $402,691,195

Permanent Total $676,150,605 2.3% $691,702,069

Permanent Partial - Major $10,560,686,058 0.4% $10,602,928,802

Permanent Partial - Minor $478,410,514 0.4% $480,324,156

Temporary $2,688,581,616 2.3% $2,750,418,993

Total Indemnity $14,797,466,325 0.9% $14,928,065,216

* Policy Year 2013-2017 Unit Statistical Plan data are for all carriers, on_leveled, developed.

Indemnity Losses as Percent of Total Losses 0.660

Medical Losses as Percent of Total Losses 0.340

Estimated Claim Cost Effect of Benefit Change = 0.6%

{( 0.66 x 1.009 + (0.34 x 1.00)} - 1.00

Factor to Reflect Expected Increase in System Utilization 1.00

Estimated Rate Level Effect of Benefit Change = 0.6%

Estimated Premium Effect of Benefit Change = $31,105,680

Death


Page 65


Exhibit GG

Sheet 2





3 % Compensation 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667

4 Minimum Comp $30.00 $30.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00

5 Maximum Comp $966.78 $994.82 $966.78 $994.82 $966.78 $994.82 $966.78 $994.82 $966.78 $994.82



8 Avg Weekly Wage $1,763.27 $1,763.27 $1,763.27 $1,763.27 $724.02 $724.02 ** $724.02 $724.02 ** $1,763.27 $1,763.27

9 Ratio to Avg -Min- (6)/(8) 0.03 0.03 0.13 0.13 0.31 0.31 0.31 0.31 0.13 0.13

10 Ratio to Avg -Max- (7)/(8) 0.82 0.85 0.82 0.85 2.00 2.06 2.00 2.06 0.82 0.85

11 "B" Value for (9) 0.0022 0.0022 0.0705 0.0705 0.9560 0.9560 0.9560 0.9560 0.0705 0.0705

12 "B" Value for (10) 24.7822 27.0409 24.7822 27.0409 86.0206 87.3709 86.0206 87.3709 24.7822 27.0409

13 Difference (12) - (11) 24.7800 27.0387 24.7117 26.9704 85.0646 86.4150 85.0646 86.4150 24.7117 26.9704

14 "A" Value for (9) 0.1346 0.1346 0.9387 0.9387 4.7003 4.7003 4.7003 4.7003 0.9387 0.9387

15 "A" Value for (10) 44.3959 47.1012 44.3959 47.1012 94.3780 95.0433 94.3780 95.0433 44.3959 47.1012

16 Difference 100 - (15) 55.6041 52.8988 55.6041 52.8988 5.6220 4.9567 5.6220 4.9567 55.6041 52.8988

17 (9) x (14) 0.0040 0.0040 0.1220 0.1220 1.4571 1.4571 1.4571 1.4571 0.1220 0.1220

18 Product (10 )x (16) 45.5954 44.9640 45.5954 44.9640 11.2440 10.2107 11.2440 10.2107 45.5954 44.9640

19 'Limit' Factor {(13) + (17) + (18) 70.3794 72.0068 70.4290 72.0564 97.7657 98.0828 97.7657 98.0828 70.4290 72.0564






Death $402,691,195 2.3% $411,953,092

Permanent Total $691,702,069 2.3% $707,611,217



Temporary $2,750,418,993 2.3% $2,813,678,630

Total Indemnity $14,928,065,216 0.8% $15,049,745,657





{( 0.666 x 1.008 + (0.334 x 1.00)} - 1.00




Death


Page 66


Exhibit GG

Sheet 3





3 % Compensation 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667 0.6667

4 Minimum Comp $30.00 $30.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00

5 Maximum Comp $994.82 $1,023.67 $994.82 $1,023.67 $994.82 $1,023.67 $994.82 $1,023.67 $994.82 $1,023.67



8 Avg Weekly Wage $1,814.41 $1,814.41 $1,814.41 $1,814.41 $745.02 $745.02 ** $745.02 $745.02 ** $1,814.41 $1,814.41

9 Ratio to Avg -Min- (6)/(8) 0.02 0.02 0.12 0.12 0.30 0.30 0.30 0.30 0.12 0.12

10 Ratio to Avg -Max- (7)/(8) 0.82 0.85 0.82 0.85 2.00 2.06 2.00 2.06 0.82 0.85

11 "B" Value for (9) 0.0009 0.0009 0.0570 0.0570 0.8583 0.8583 0.8583 0.8583 0.0570 0.0570

12 "B" Value for (10) 24.7822 27.0409 24.7822 27.0409 86.0206 87.3709 86.0206 87.3709 24.7822 27.0409

13 Difference (12) - (11) 24.7813 27.0400 24.7252 26.9839 85.1623 86.5126 85.1623 86.5126 24.7252 26.9839

14 "A" Value for (9) 0.0838 0.0838 0.8293 0.8293 4.3800 4.3800 4.3800 4.3800 0.8293 0.8293

15 "A" Value for (10) 44.3959 47.1012 44.3959 47.1012 94.3780 95.0433 94.3780 95.0433 44.3959 47.1012

16 Difference 100 - (15) 55.6041 52.8988 55.6041 52.8988 5.6220 4.9567 5.6220 4.9567 55.6041 52.8988

17 (9) x (14) 0.0017 0.0017 0.0995 0.0995 1.3140 1.3140 1.3140 1.3140 0.0995 0.0995

18 Product (10 )x (16) 45.5954 44.9640 45.5954 44.9640 11.2440 10.2107 11.2440 10.2107 45.5954 44.9640

19 'Limit' Factor {(13) + (17) + (18) 70.3784 72.0057 70.4201 72.0474 97.7203 98.0374 97.7203 98.0374 70.4201 72.0474






Death $411,953,092 2.3% $421,428,013

Permanent Total $707,611,217 2.3% $723,886,275



Temporary $2,813,678,630 2.3% $2,878,393,238

Total Indemnity $15,049,745,657 0.8% $15,173,559,752





{( 0.671 x 1.008 + (0.329 x 1.00)} - 1.00




Death


Page 67

(212) 709 -3500 | One S ta te S t reet , New York , NY 10004 -1511 | www.df s .ny .gov

Linda A. Lacewell Superintendent

Andrew M. Cuomo Governor

July 15, 2020

Mr. Jeremy Attie, President and CEO

New York Compensation Insurance Rating Board

733 Third Avenue

New York, NY 10017

RE: Company File #: Loss Cost Revision 2020

Department File #: R2020001703

Dear Mr. Attie:

This is in reference to Mr. Ziv Kimmel’s letter dated May 15, 2020, submitting the captioned filing.

In this filing, New York Compensation Insurance Rating Board requests approval of an average reduction in the overall loss cost level of 1.0%.

This filing is hereby approved effective October 1, 2020.

Very truly yours,

Linda A. Lacewell

Superintendent

By:

Alexander Vajda

Supervising Actuary

Property Bureau

212-480-5524

[email protected]

Documents

NEW YORK WORKERS’ COMPENSATION OCTOBER 1, 2020 LOSS … · New York Workers’ Compensation October 1, 2020 Loss Cost Revision Explanatory Memorandum This memorandum, together with