Basic Limits ISO CGL
I had it in my head that we needed to know Basic Limits (rule 5A) when calculating the CSLC in at least one of the three methods, but now I don't see it so I'm thinking I made it up. I know we need it to calc the E-mod (for loss history) but wanted to check that they're not used in any of the CSLC calcs? Thanks!
Comments
Rule 5A is described initially in the wiki here: https://battleacts8.ca/8/wiki/index.php?title=ISO.Rating#Determination_of_Experience_Modification_(Rule_5)
It's needed for the both the standard approach to calculating the CSLC and the Present Average Company Rate approach. Each of these approaches use basic limit premium as an exposure base so you need to know Rule 5A to determine what the appropriate limits are.
So far, it seems that almost always you're given the basic limit premium in the question. I'd be prepared to answer a short answer type question on Rule 5A.