Filing at a Glance General Information - Delaware Insurance ...

ALLSTATE INDEMNITY COMPANY
PRIVATE PASSENGER AUTOMOBILE
DATA REQUIREMENTS FOR FILINGS OF MANUAL RATES
FORMS AND RATES BULLETIN 23
DELAWARE
Bulletin 23
Page 1
Below are Allstate Indemnity Company’s responses to Delaware’s Forms and Rates Bulletin 23
revised on September 23, 2002.
1. Earned Premium
Page 3 of this attachment contains earned premium on an actual and on a current rate
level basis. Allstate uses a methodology that assumes that exposures are written
uniformly by month, using a procedure described in a discussion by Frank Karlinksi of
the paper entitled “A Refined Model for Premium Adjustment,” by David Miller and
George Davis. (Mr. Karlinski’s discussion appeared in the Proceedings of the Casualty
Actuarial Society (PCAS), Vol. LXIV, 1977, and the paper by Miller and Davis appeared
in the PCAS, Vol. LXIII, 1976.)
2. Loss & Loss Adjustment Expenses (LAE) Ratio
Pertinent calculations of the rate level as well as explanations of the methodologies used,
and background exhibits are provided in Attachments I through III of the filing packet.
Attachment II describes the adjustments to the incurred loss and allocated loss adjustment
expense (ALAE) data in the “Adjustments to Losses” section of the memo. Pages 4
through 39 of this attachment provide loss development triangles for both paid and
incurred loss and ALAE for Delaware and countrywide, with the countrywide data
including only tort states. The calculation of ULAE factors for liability and physical
damage coverages can be found in Attachment III, Exhibit 6. Attachment III,
Exhibits 3.1 through 5 provide the calculation of Ultimate Loss and Loss Adjustment
Expenses by Coverage by year.
3. Permissible Loss and Loss Adjustment Expense (LAE) Ratio
Pages 40 and 41 of this attachment provide taxes, licenses and fees for Delaware. Page
42 of this attachment provides the derivation of the commission and brokerage expense
provision. The countrywide experience for other acquisition expenses and general
expenses can be found in Attachment III, Exhibits 11 and 12. Page 43 of this
attachment shows the development of the expected loss and loss adjustment expense
ratios used in the rate level calculations. Investment income is reflected in the
underwriting profit provision which is used to determine the permissible loss and LAE
ratio. The determination of the underwriting profit provisions is shown on Exhibits 14.1
and 14.2 of Attachment III.