Wacky Experience Rating Plan Formula
(1-W)
x
Expected
Excess
Losses
+
W
x
Actual
Excess Losses
+
Ballast
Value
+
Actual
Primary
Losses
(1-W)
x
Expected
Excess
Losses
+
W
x
Expected Excess Losses
+
Ballast
Value
+
Expected Primary Losses
“I don’t get it”