Eric Ratesetter walked into his boss’s office and said, “I’ve got a problem.” Melissa Wisdom looked up and said, “All right, let me guess, it’s a State of Arcadia rate filing again.” Eric sighed and said, “Yes.”
“Let me give you the background again,” he said. “We have a lot of business in Arcadia, so our experience is credible. Our filing is based on our own experience and our own administrative costs, and the profit/contingency margin is set by the board based on our surplus and each line’s risk. Arcadia uses Actuarial Wizard as their consultant. There have been a number of situations where the consultant from Wizard has asked us to make a change but without much justification.
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Up to Code - March/April 2018, By David Ogden