Read the Filing

Disposition#

Disposition

The regulator's final action on the filing (approved, approved as amended, disapproved, withdrawn, pending).

Days to response / days to disposition

Days from an objection letter to the carrier's reply / from submission to the regulator's final action, as published; a filing still pending has no duration yet and is left out of day medians.

Loss cost multiplier (LCM)#

Loss cost multiplier (LCM)

The factor a carrier applies to the rating bureau's advisory loss costs to arrive at its rates. 1.00 = files at bureau loss costs.

Base LCM

The carrier's primary LCM before tier, class or territory adjustments.

Deviation#

Deviation from bureau rates

In a deviation state, the factor a carrier applies to the bureau's full manual rates; 1.00 = bureau rates.

Class deviation

A class-specific LCM or factor expressed relative to the carrier's base LCM.

Tier ladder#

Tier ladder

A set of LCMs a carrier files for different rating tiers or companies; shown as a range around the base.

Indicated vs filed#

Indicated change

The rate change the carrier's actuarial analysis supports.

Taken change

The rate change the carrier filed.

Shortfall

Indicated minus taken, in percentage points; positive means the carrier took less than indicated.

Expense provisions#

Permissible loss ratio (PLR)

1 − expense provisions − profit provision.

Profit and contingency provision

The underwriting profit load in the rate, % of premium.

A fuller explainer is coming with the Read the Filing series.

Objections#

Objection letter

A regulator's request for information or change on a filing.

Response letter

The carrier's reply.

Rating regime#

Rating regime

How a state sets WC rates: loss-cost (bureau loss costs × carrier LCM), deviation (bureau rates ± carrier deviation), administered (state-set rates), monopolistic (state fund only).