 |
 |
 |
|
|
|
Mod Smashing What you should know about a Mod. Minimum Mod = Average Ballast = (2 numbers in top line that are the same as the ones on the bottom line) Total Expected Losses (bottom number of mod equation on lower right) Primary Factor = For every dollar paid (or reserved) on a claim up to $5,000, the ultimate cost to the policyholder equals $1 x the primary factor.
Manual Premium (before Mod) X 3 = Total Expected Losses
Excess Factor = for every dollar over $5,000 paid (or reserved) on a claim, the ultimate cost to the policy holder equals $1 x excess factor. Primary Factor x Weighting Value = Number above x (G in mod calculation)
Cost of Claims = Amount that claims that appear on the mod cost the insured this year ((Actual Mod – Minimum Mod) x Manual Premium) – (1 - premium discount %)
|
|
