Did the premiums used in the calculation of the catastrophe provisions’ miscellaneous values consist of workers compensation only or all commercial lines?
Response: Premium was not used in the derivation of either the Terrorism or Catastrophe (other than Certified Acts of Terrorism) provisions. Both provisions were based on the average cost per $100 of payroll. The only place that premium was used in Item B-1407 was to estimate the overall impact on workers compensation premium by state (Exhibits 6 and 11). In these exhibits, the latest available Calendar Year Workers Compensation Direct Written Premium by state was used from the Annual Statement.
Related Questions
- Did the premiums used in the calculation of the catastrophe provisions’ miscellaneous values consist of workers compensation only or all commercial lines?
- What is the calculation/formula used to determine how much is credited back to someones account?
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