First Step: Calculations Using Uncapped Rates (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (Data) Table 5 col.(5) Table 5 col.(10) (1)*(3) (Data) .85*(5) 1.15*(5) (3) within (6),(7) (1)*(8) Y=Knocked Out Class Exposures Credibility Adjusted Rate Pre-Cap Off-Balance Corrected Rate (Set 0) Losses in Pre-Cap O-B Corrected Rate Present Rate Cap Below Cap Above Capped Rates (Set 0) Total Losses in Capped Rates Is Rate Knocked Out of TCF by Capping? 1 25 \$ 1,978 \$ 2,105 \$ 52,617 \$ 2,000 \$ 1,700 \$ 2,300 \$ 2,105 \$ 52,617 2 30 \$ 1,022 \$ 1,136 \$ 34,087 \$ 1,500 \$ 1,275 \$ 1,725 \$ 1,275 \$ 38,250 Y 3 36 \$ 1,349 \$ 1,451 \$ 52,232 \$ 1,200 \$ 1,020 \$ 1,380 \$ 1,380 \$ 49,680 Y 4 43 \$ 731 \$ 821 \$ 35,482 \$ 800 \$ 680 \$ 920 \$ 821 \$ 35,482 5 52 \$ 979 \$ 1,058 \$ 54,863 \$ 1,000 \$ 850 \$ 1,150 \$ 1,058 \$ 54,863 6 62 \$ 1,008 \$ 1,077 \$ 67,007 \$ 1,200 \$ 1,020 \$ 1,380 \$ 1,077 \$ 67,007 7 75 \$ 786 \$ 846 \$ 63,149 \$ 850 \$ 723 \$ 978 \$ 846 \$ 63,149 8 90 \$ 615 \$ 667 \$ 59,764 \$ 500 \$ 425 \$ 575 \$ 575 \$ 51,508 Y 9 107 \$ 788 \$ 833 \$ 89,528 \$ 750 \$ 638 \$ 863 \$ 833 \$ 89,528 10 129 \$ 384 \$ 422 \$ 54,492 \$ 375 \$ 319 \$ 431 \$ 422 \$ 54,492 11 155 \$ 330 \$ 362 \$ 56,038 \$ 300 \$ 255 \$ 345 \$ 345 \$ 53,404 Y 12 186 \$ 315 \$ 342 \$ 63,576 \$ 300 \$ 255 \$ 345 \$ 342 \$ 63,576 13 223 \$ 330 \$ 353 \$ 78,664 \$ 350 \$ 298 \$ 403 \$ 353 \$ 78,664 14 267 \$ 259 \$ 279 \$ 74,520 \$ 250 \$ 213 \$ 288 \$ 279 \$ 74,520 15 321 \$ 283 \$ 300 \$ 96,191 \$ 300 \$ 255 \$ 345 \$ 300 \$ 96,191 Total 1,801 \$ 480 \$ 518 \$ 932,211 \$ 489 \$ \$ \$ 512 \$ 922,932 Second Step: Test Correction Step Post Capping (11) (12) (13) (14) (15) (16) (17) Table 5 col.(7) (11)) Less Knockouts F*(12) (4)+(13) (14)/(1) (15) within (5),(6) Y=Knocked Out Class Original Test Correction Basis Test Correction Basis Loss Knockouts Additional Losses for Test Correction Revised Test Corrected Total Losses Test Corrected Rate (Set 1) Capped Rates (Set 1) Is Rate Knocked Out of TCF by Capping? 1 \$ 11 \$ 11 \$ 580 \$ 53,197 \$ 2,128 \$ 2,128 2 \$ 12 \$ \$ 626 \$ 34,713 \$ 1,157 \$ 1,275 Y 3 \$ 13 \$ \$ 671 \$ 52,902 \$ 1,470 \$ 1,380 Y 4 \$ 14 \$ 14 \$ 713 \$ 36,195 \$ 838 \$ 838 5 \$ 14 \$ 14 \$ 752 \$ 55,616 \$ 1,073 \$ 1,073 6 \$ 15 \$ 15 \$ 789 \$ 67,796 \$ 1,090 \$ 1,090 7 \$ 16 \$ 16 \$ 822 \$ 63,970 \$ 857 \$ 857 8 \$ 16 \$ \$ 852 \$ 60,615 \$ 677 \$ 575 Y 9 \$ 17 \$ 17 \$ 878 \$ 90,406 \$ 841 \$ 841 10 \$ 17 \$ 17 \$ 902 \$ 55,394 \$ 429 \$ 429 11 \$ 18 \$ \$ 922 \$ 56,960 \$ 368 \$ 345 Y 12 \$ 18 \$ 18 \$ 940 \$ 64,516 \$ 347 \$ 345 Y 13 \$ 18 \$ 18 \$ 955 \$ 79,619 \$ 357 \$ 357 14 \$ 18 \$ 18 \$ 968 \$ 75,488 \$ 282 \$ 282 15 \$ 19 \$ 19 \$ 980 \$ 97,170 \$ 303 \$ 303 Total \$ 235 \$ 177 \$ 12,349 \$ 944,560 \$ 524 \$ 517 Reference Values for All Classes A = (Last Table) Overall Average Rate in Data \$ 518 B = Total Loss in Set 0 Rates \$ 923,632 C= Total Losses in Data \$ 932,211 D = C-B = Shortfall \$ 9,279 E =Total Test Correction Basis on Non-Capped Classes (12) \$ 177 F = D/E = Test Correction Factor 52.44