First Step: Calculations Using Rates from First Iteration (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (Data) Table 5 col.(5) Table 6 col.(15) (1)*(3) (Data) .85*(5) 1.15*(5) (3) within (6),(7) (1)*(8) Y=Knocked Out Class Exposures Credibility Adjusted Rate Pre-Cap Test Corrected Rate (Set 1) Losses in Pre-Cap Test Corrected Rate Present Rate Cap Below Cap Above Capped Rates (Set 1) Total Losses in Capped Rates Is Rate Knocked Out of TCF by Capping? 1 25 \$ 1,978 \$ 2,128 \$ 53,197 \$ 2,000 \$ 1,700 \$ 2,300 \$ 2,128 \$ 53,197 2 30 \$ 1,022 \$ 1,157 \$ 34,713 \$ 1,500 \$ 1,275 \$ 1,725 \$ 1,275 \$ 38,250 Y 3 36 \$ 1,349 \$ 1,470 \$ 52,902 \$ 1,200 \$ 1,020 \$ 1,380 \$ 1,380 \$ 49,680 Y 4 43 \$ 731 \$ 838 \$ 36,195 \$ 800 \$ 680 \$ 920 \$ 838 \$ 36,195 5 52 \$ 979 \$ 1,073 \$ 55,616 \$ 1,000 \$ 850 \$ 1,150 \$ 1,073 \$ 55,616 6 62 \$ 1,008 \$ 1,090 \$ 67,796 \$ 1,200 \$ 1,020 \$ 1,380 \$ 1,090 \$ 67,796 7 75 \$ 786 \$ 857 \$ 63,970 \$ 850 \$ 723 \$ 978 \$ 857 \$ 63,970 8 90 \$ 615 \$ 677 \$ 60,615 \$ 500 \$ 425 \$ 575 \$ 575 \$ 51,508 Y 9 107 \$ 788 \$ 841 \$ 90,406 \$ 750 \$ 638 \$ 863 \$ 841 \$ 90,406 10 129 \$ 384 \$ 429 \$ 55,394 \$ 375 \$ 319 \$ 431 \$ 429 \$ 55,394 11 155 \$ 330 \$ 368 \$ 56,960 \$ 300 \$ 255 \$ 345 \$ 345 \$ 53,404 Y 12 186 \$ 315 \$ 347 \$ 64,516 \$ 300 \$ 255 \$ 345 \$ 345 \$ 64,084 Y 13 223 \$ 330 \$ 357 \$ 79,619 \$ 350 \$ 298 \$ 403 \$ 357 \$ 79,619 14 267 \$ 259 \$ 282 \$ 75,488 \$ 250 \$ 213 \$ 288 \$ 282 \$ 75,488 15 321 \$ 283 \$ 303 \$ 97,170 \$ 300 \$ 255 \$ 345 \$ 303 \$ 97,170 Total 1,801 \$ 480 \$ 524 \$ 944,560 \$ 489 \$ 517 \$ 931,779 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 Less Knockouts Additional Losses for Test Correction Revised Test Corrected Total Losses Test Corrected Rate (Set 2) Capped Rates (Set 2) Is Rate Knocked Out of TCF by by Capping? 1 \$ 11 \$ 11 \$ 30 \$ 53,227 \$ 2,129 \$ 2,129 2 \$ 12 \$ \$ 32 \$ 34,746 \$ 1,158 \$ 1,275 Y 3 \$ 13 \$ \$ 35 \$ 52,937 \$ 1,470 \$ 1,380 Y 4 \$ 14 \$ 14 \$ 37 \$ 36,232 \$ 839 \$ 839 5 \$ 14 \$ 14 \$ 39 \$ 55,654 \$ 1,074 \$ 1,074 6 \$ 15 \$ 15 \$ 41 \$ 67,837 \$ 1,090 \$ 1,090 7 \$ 16 \$ 16 \$ 43 \$ 64,013 \$ 858 \$ 858 8 \$ 16 \$ \$ 44 \$ 60,659 \$ 677 \$ 575 Y 9 \$ 17 \$ 17 \$ 45 \$ 90,452 \$ 841 \$ 841 10 \$ 17 \$ 17 \$ 47 \$ 55,440 \$ 430 \$ 430 11 \$ 18 \$ \$ 48 \$ 57,008 \$ 368 \$ 345 Y 12 \$ 18 \$ \$ 49 \$ 64,564 \$ 348 \$ 345 Y 13 \$ 18 \$ 18 \$ 49 \$ 79,669 \$ 357 \$ 357 14 \$ 18 \$ 18 \$ 50 \$ 75,538 \$ 282 \$ 282 15 \$ 19 \$ 19 \$ 51 \$ 97,221 \$ 303 \$ 303 Total \$ 235 \$ 159 \$ 639 \$ 945,199 \$ 525 \$ 518 Reference Values for All Classes A = (Last Table) Overall Average Rate in Data \$ 518 B = Total Loss in Set 1 Rates \$ 931,779 C= Total Losses in Data \$ 932,211 D = C-B = Shortfall \$ 431 E =Total Test Correction Basis on Non-Capped Classes (12) \$ 159 F = D/E = Test Correction Factor 2.71