Compare NCCI and ISO Experience Rating

Question 1

ISO vs. NCCI: Experience period

Answer 1

Both use 3 years, lagged 1 year

Question 2

ISO vs. NCCI: Experience mod

Answer 2

ISO: Add 1 to put in factor form

NCCI: Already in factor form

Question 3

ISO vs. NCCI: Credibility

Answer 3

ISO: Up to 100% of limited loss experience

NCCI: Less than 100%

Question 4

ISO vs. NCCI: Plan type

Answer 4

ISO: No-split

NCCI: Single-split

Question 5

ISO vs. NCCI: ALAE treatment

Answer 5

ISO: Included

NCCI: Not included

Question 6

ISO vs. NCCI: Other expenses

Answer 6

Both exclude other expenses

Question 7

ISO vs. NCCI: Trending of losses

Answer 7

Both detrend expected loss only

Question 8

ISO vs. NCCI: Benefit levels

Answer 8

ISO: Not relevant

NCCI: Adjusted in expected losses

Question 9

ISO vs. NCCI: PAFs

Answer 9

ISO: Used for claims-made

NCCI: No claims-made policies

Question 10

ISO vs. NCCI: Loss development

Answer 10

ISO: Compares ultimate losses

NCCI: Compares undeveloped losses

Question 11

ISO vs. NCCI: Excess loss definition

Answer 11

ISO: Above basic limits and above MSL

NCCI: Above split point

Question 12

ISO vs. NCCI: Use of excess losses

Answer 12

ISO: Ignored in calculation

NCCI: Used in calculation

Question 13

ISO vs. NCCI: Loss limits

Answer 13

ISO: Basic limits and MSL

NCCI: SAL, multi-claim, and disease

Question 14

ISO vs. NCCI: Responds to

Answer 14

ISO: Primarily frequency (losses are capped)

NCCI: Frequency and severity