GENERAL KNOWLEDGE

Detailed explanation-1: -A retrospectively rated insurance policy adjusts a policy’s premium based on actual losses during the policy period. This method of insurance is in contrast to premiums that are based on industry-wide losses.

Detailed explanation-2: -Retrospective insurance means any insurance policy under which the premium is not fixed but is subject to adjustments to reimburse the insurance carrier for actual losses incurred or paid (e.g. claims, settlements, damages, and legal costs).

Detailed explanation-3: -An incurred loss retro plan is a way for medium-to large-sized companies to reduce their workers’ compensation premiums by assuming more of the risk. It adjusts the ultimate premium on the basis of losses incurred during the policy period.

Detailed explanation-4: -1. Retrospective rating plan premium is the sum of basic premium, converted losses, plus the excess loss premium and retrospective development premium elective elements if you chose them. This sum is multiplied by the applicable tax multiplier shown in the Schedule.