Restate historical premium for ratemaking, bringing it on-level for past rate changes and reflecting premium audits.
Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Ratemaking. 23 min read, ~3,381 words.
On-leveling restates historical premium as if the current rate level had always applied; the multiplier is the on-level factor, also called the current rate level factor. Two methods exist: extension of exposures (re-rate every record at current rates, exact, class-accurate) and the parallelogram method (approximates the average rate level from...
Read the full lesson, free →
Worked examples and practice. Free with a free account, no card.
What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Example 6
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- A7
Browse all free Exam 5 lessons or jump into free Exam 5 practice questions.