TO: ALL INSURANCE COMPANIES MAKING LOSS COST FILINGS IN ALASKA
RE: CHANGES TO THE "CALCULATION OF COMPANY LOSS COST MULTIPLIER" FORM
The purpose of this bulletin is to distribute new versions of the "Calculation of Company Loss Cost Multiplier" forms used by companies when submitting loss cost multiplier filings with the Alaska Division of Insurance.
The "Calculation of Company Loss Cost Multiplier" forms have been updated to show in more detail how the "overall rate change" (Section 7) is calculated. This change was made in response to a large number of companies making errors in the rate change calculation, and is intended to reduce the number of companies making the calculation incorrectly.
The previous version of this form simply requested that companies specify the overall rate change. Many companies have instead listed the loss cost change as filed by the rating organization, which is incorrect. In most cases, a company's "overall rate change" is a combination of the loss cost and expense multiplier changes. The new additions to Section 7 of the form should clarify this calculation and reduce the number of errors made by companies in their filings.
Companies must use the new forms when submitting loss cost multiplier filings with the Alaska Division of Insurance.
If you have any questions or would like further clarification about the calculations, please call Barbara Thurston at (907) 465-2573.
Dated this 13th day of November 1996.
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