PowerPack Question 16

jmoore13jmoore13
in Fisher.LimitedTableM

Is the State/Hazard Group Relativity strictly for use in the ICRLL method? Would we ever use it in a Limited Table M Question? I noticed it was given in the PowerPack Question 16 but didn't seem to be used and didn't see anything in the wiki about it for LimTableM so wanted to check.

Comments

  • adminadmin

    This is a bit hard to advise on. According to the source texts, the State/Hazard Group Relativity is only mentioned in the Fisher reading in the context of the ICRLL adjustment. So in theory, yes, just in the context of the ICRLL adjustment.

    However, the CAS could probably expect you to understand why there is a state/hazard group relativity and reason your way through what to do with it. The situation that springs to mind is the Table M and Limited Table M are produced using countrywide data (Table L uses California only data). So if you're given the expected unlimited loss in a state, along with the state/hazard group relativity, you'd want to back out the state/hazard group relativity from the expected unlimited loss to get a countrywide expected unlimited loss so you can use the tables.

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