Is the calculated terrorism charge impacted by large deductible rating plans?
Response: Yes, large deductible filings are individual carrier filings and are subject to the rating plan filed by the carrier with the individual state regulators. However, it should be noted that the premium algorithm indicates that the terrorism charge is Payroll / $100 x Terrorism Rate. Therefore, if carriers are using the NCCI-filed premium algorithm as the basis for their large deductible filings, the large deductible credit would have no bearing on the calculation of the terrorism charge because the terrorism charge is a function of policy payroll and not net premium.
