053-2 Wyo. Code R. § 2-15
(a) Actual (A) Losses. The incurred loss amounts for workers' compensation claims submitted by the employer, which have event dates in the three (3) year window of time used for experience rating. The losses will include the case reserves as of the evaluation date set by the plan, and will have applicable plan minimums and caps applied for use in the experience rating formula.
(b) Actual Excess (Ae) Losses. The Actual Excess Losses for each claim represents the more random and less controllable portion of the claim. For each claim, the Actual Excess Loss is computed as the difference between the Total Actual Loss for the claim and Actual Primary Loss for the claim.
(c) Actual Primary (Ap) Losses. The experience rating plan segregates the Total Actual Loss on each claim into two components - primary and excess. The Actual Primary Loss for each claim represents the more predictive and controllable portion of the claim. The Actual Primary Loss value for each claim is obtained by the formula: Actual Primary Loss = Total Actual Loss if Total Loss is less than ten thousand dollars ($10,000.00); = ten thousand dollars ($10,000.00) if Total Loss is equal to or greater than ten thousand dollars ($10,000.00).
(d) Credibility (Z) Value. A measure of the predictive value in a given application that the actuary attaches to a particular set of data, such as the claims experience used for determining experience modification ratings.
(e) Credibility Excess (Ze) Value. The Credibility Excess, or Ze Value, is the weight given to the risk's Actual Excess Losses relative to the average Expected Excess Losses for a similarly-sized risk in the same standard classification(s). It is intended to reflect the actuarial predictability of a risk's excess loss experience. The larger the risk is, the greater the weight is given to the excess loss experience and the greater the Ze. The excess experience of very small experience rated risks has essentially no predictive value and, as a result, the Ze for these risks may be zero (0). The complement of the Ze, (1 - Ze), is the weight given to the risk's Expected Excess Losses. The Ze Value varies with a risk's Expected Losses.
(f) Credibility Primary (Zp) Value. The Credibility Primary (Zp) Value, is the weight given to the risk's Actual Primary Losses relative to the average Expected Primary Losses for a similarly-sized risk in the same standard classification(s). It is intended to reflect the actuarial predictability of a risk's primary loss experience. The larger the risk is, the greater the weight is given to the primary loss experience and the greater the Zp. The complement of the Zp value (1 - Zp), is the weight given to the risk's Expected Primary Losses. The Zp Value varies with a risk's Expected Losses.
(g) Expected (E) Losses (also referred to as Total Expected Loss). The Expected Losses are the basis to which actual losses are compared in the experience rating formula. They are derived for each classification as the product of the payroll for the classification and the expected loss rate applicable to the classification. They are also computed as the sum of the Expected Primary Losses and the Expected Excess Losses. For other than per capita classifications, this product is then divided by one hundred (100). The Expected Loss Rate for a classification is the average rate of losses per one hundred dollars ($100.00) of payroll that is expected for the classification during an experience rating period.
(h) Expected Excess (Ee) Losses. The Expected Excess Losses are the portion of the Expected Losses that is considered excess, and are used in the experience rating formula in combination with the Actual Excess Losses. The Expected Excess Losses for a classification are determined by multiplying the Excess Expected Loss Rate for the classification per $100 of employer payroll for the classification. The total Expected Excess Losses are the sum of the Expected Excess Losses over all classifications.
(i) Expected Primary (Ep) Losses. The Expected Primary Losses are the portion of the Expected Losses that is considered primary, and are used in the experience rating formula in combination with the Actual Primary Losses. The Expected Primary Losses for a classification are determined by multiplying the Primary Expected Loss Rate for the classification by the employer payroll for the classification. The total Expected Primary Losses are the sum of the Expected Primary Losses over all classifications.
(j) Multiple Claim Occurrence (MCO). Claims with multiple claimants or catastrophe claims combines claims together which then have a $500,000.00 limit (2 X the Maximum Single Loss Amount of $250,000.00).
(k) Multiple Single Loss Amount. Maximum Single Loss is the maximum limit of incurred loss, not to exceed the state accident limit of $250,000.00.
(l) Split Plan. A method for calculating EMRs that balances the effect of more frequent losses that fall below a "split point" (a loss amount determined by the state based on Actuary recommendations), with more severe losses that occur above the split point.
(m) Split Point. A loss amount determined by the state based on actuarial recommendations. Losses falling below the split point are considered Primary Losses. Any remaining losses above the Primary Losses and below the Maximum Single Loss Amount are considered the Excess Losses.
(n) Maximum Loss Cap. The Maximum Loss Cap is the state's accident limit per a single claim or two (2) times the state's accident limit for multiple claimants or catastrophe.
053-2 Wyo. Code R. § 2-15
Adopted, Eff. 10/13/2016.
Amended, Eff. 8/24/2017.
Amended, Eff. 12/11/2018.