ARIZONA WORKERS COMPENSATION ISSUES

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ARIZONA WORKERS COMPENSATION ISSUES
CLRS September 13, 1999
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Arizona - Workers CompensationDirect Written
Premium
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Reasons for Premium Decrease

• Rate Decreases
• Heightened Competition

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Arizona - PC SFCombined RatioCalendar Year
vs. Ultimate Accident Year
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Arizona - Workers Compensation (PC SF)Average
Indemnity Cost Per Lost Time Case
Based on NCCIs Financial Call data developed to
ultimate
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Arizona - Workers Compensation (PC SF)Average
Medical Cost Per Lost Time Case
Based on NCCIs Financial Call data developed to
ultimate
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Arizona - Workers Compensation (PC SF)Change
in Lost Time Claim Frequency Per Worker
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Workers Compensation Loss TrendsReasons for
Reduction in Frequency/Severity

• Economic Impacts
• Enhanced Safety Measures
• Antifraud Measures
• Employer Loss Control Initiatives

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Arizona - Workers CompensationAverage Rate Level
Changes
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Arizona - Workers CompensationProfit on
Insurance Transactions
Percent of Direct Premiums Earned
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Arizona - Workers CompensationComponents of
10/1/1999 Rate Indication
Change Experience, Trend, Benefits -13.7 Loss
Adjustment Expenses -3.3 General Production
Expenses 1.4 Proposed Rate Change -15.4
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Arizona - Workers CompensationRange of
Indications with Varying Trends