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

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Attachment II Page 5 This approach for selecting pure premium trends is consistent with the Current Practices and Alternatives detailed in Appendix 1 – Background and Current Practices of Actuarial Standard of Practice No. 13, Trending Procedures in Property/Casualty Insurance Ratemaking. Catastrophes An adjustment has been made to Comprehensive coverage losses to more appropriately account for catastrophes in the base data. All actual catastrophe losses during the experience period were removed and then replaced with a provision to reflect expected catastrophe losses in Delaware. A catastrophe loss provision based upon 25 years of data was used. The provision was calculated by dividing total catastrophe losses by total Comprehensive coverage incurred losses excluding catastrophes over the 25-year period. The resulting catastrophe provision is 2.8%. The catastrophe provision is developed in Exhibit 9 and is applied to the Comprehensive coverage losses in Exhibit 2.6. This adjustment to account for catastrophes is consistent with the Analysis of Issues and Recommended Practices detailed in Section 3.4 of Actuarial Standard of Practice No. 39, Treatment of Catastrophe Losses in Property/Casualty Insurance Ratemaking.
EXPENSES AND PROFIT PROVISION Attachment II Page 6 The expense provisions described below were derived in accordance to Section 3.2, Determining Expense Provisions, of Actuarial Standard of Practice No. 29, Expense Provisions in Property/Casualty Insurance Ratemaking. Exhibit 10 shows the expense provisions used in developing the current fixed and variable expense ratios, as well as the underwriting profit and debt provisions. Provisions Fixed Expenses General and Other Acquisition Expense The provisions for general expense and other acquisition expense are based on countrywide data. Since the methods and procedures that incur these expenses are uniform within each state, it is a reasonable assumption that these expense provisions are uniform across all states. To develop the provision for other acquisition and general expenses, a three-year average of countrywide calendar year incurred expense divided by countrywide calendar year direct earned premium was calculated. Because premiums charged for the net cost of reinsurance (NCOR) do not include provisions for general and other acquisition expenses, the earned premium used in the development of the general and other acquisition expenses is countrywide direct earned premium less countrywide NCOR premium. In previous filings, expense data had been separated out by line of business, as is done in the Insurance Expense Exhibit, to determine the general and other acquisition expense provisions by line. Moving forward, Allstate has opted to leave the expense data in combined-lines form since the allocation of general and other acquisition expenses by line of business is done by accounting formula rather than pricing analysis. However, company- and line-specific adjustments to other acquisition expenses continue to be made, such as the reduction by the amount of installment fees collected and the adjustment for premiums written off. Licenses & Fees A provision for licenses and fees that do not vary by premium size is determined by taking the arithmetic average ratio of these licenses and fees from the latest three calendar years in Delaware. The provision for licenses and fees is considered, along with the general and other acquisition expense provisions, to be a fixed expense. Rate Need Calculations In developing the dollar provision for fixed expenses used in the calculation of our Delaware rate level need by coverage, the three-year average expense ratio for fixed expenses is applied to the average earned premium of Delaware. The Delaware average earned premium is developed using the same three-year period used in the calculation of the expense ratio. The provision is then adjusted for inflation expected to occur from the midpoint of the three years used in the calculation of the average earned premium to the average earned date of the proposed policy
Page 1 and 2: SERFF Tracking Number: ALSE-1278234
Page 3 and 4: SERFF Tracking Number: ALSE-1278234
Page 5 and 6: DELAWARE VOLUNTARY PRIVATE PASSENGE
Page 13 and 14: COLLISION AND COMPREHENSIVE MODEL Y
Page 23: SERFF Tracking Number: ALSE-1278234
Page 26 and 27: ATTACHMENT I Summary of Disclosures
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Page 32 and 33: Loss Development ADJUSTMENTS TO LOS
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Page 38 and 39: ADJUSTMENTS TO PREMIUMS Attachment
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Page 46 and 47: Fiscal Year Ending (1) Earned Expos
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Page 66 and 67: Coverage Bodily Injury Property Dam
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Allstate Indemnity Allstate Indemni
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Allstate Indemnity Company Private
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ALLSTATE INSURANCE GROUP* Countrywi
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Fiscal Year Ending (1) Earned Expos
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Coverage Bodily Injury Property Dam
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Attachment III Exhibit 17.2 Year En
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Methodology ALLSTATE INDEMNITY COMP
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ATTACHMENT V Summary of Manual Chan
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Bulletin 23
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Automobile Liability Insurance Othe
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