Explanation of the difference between rate level change and premium level change.
A rate level change is an adjustment to the Advisory Rates.
Premium level changes are determined by a number of factors, which may include things such as changes to the premium discount table or expense constants. Neither of these affect the manual rates, but they will affect the amount of premium paid by the policyholder.
In the voluntary market a change in the manual rates may result in both a rate level change and a premium level change, depending on carrier pricing adjustments. In the Assigned Risk market a manual rate adjustment will result in both a rate level change and a premium level change.
‘Premium & Rate Level Changes
| Year | Premium Change | Rate Change | |||
|---|---|---|---|---|---|
| % | Factor | % | Factor | ||
| 1/1/1990 | 23.3% | 1.233 | |||
| 1/1/1991 | 4.9% | 1.049 | |||
| 1/1/1992 | 13.4% | 1.134 | |||
| 1/1/1993 | 7.8% | 1.078 | |||
| 1/1/1994 | 2.8% | 1.028 | |||
| 1/1/1995 | -3.4% | 0.966 | 0.966 | ||
| 1/1/1996 | -5.9% | 0.941 | -8.6% | 0.914 | |
| 1/1/1997 | -9.2% | 0.908 | -9.3% | 0.907 | |
| 7/1/1997 | 5.6% | 1.056 | 5.6% | 1.056 | |
| 1/1/1998 | -4.2% | 0.958 | -4.2% | 0.958 | |
| 1/1/1999 | -2.5% | 0.975 | -2.5% | 0.975 | |
| 7/1/1999 | 2.7% | 1.027 | 2.7% | 1.027 | |
| 1990’s | subtotal | 35.9% | 1.359 | -18.9% | 0.811 |
| 1/1/2000 | 0.1% | 1.001 | 0.0% | 1.000 | |
| 7/1/2000 | 3.6% | 1.036 | 3.6% | 1.036 | |
| 1/1/2001 | 1.5% | 1.015 | 1.5% | 1.015 | |
| 1/1/2002 | -7.4% | 0.926 | -7.4% | 0.926 | |
| 1/1/2003 | -1.9% | 0.981 | -2.2% | 0.978 | |
| 1/1/2004 | -1.8% | 0.982 | -1.8% | 0.982 | |
| 1/1/2005 | 3.2% | 1.032 | 3.2% | 1.032 | |
| 1/1/2006 | 2.2% | 1.022 | 1.9% | 1.019 | |
| 1/1/2007 | -3.1% | 0.969 | -3.1% | 0.969 | |
| 1/1/2008 | 0.4% | 1.004 | 0.4% | 1.004 | |
| 1/1/2009 | -3.4% | 0.966 | -3.4% | 0.966 | |
| 1/1/2010 | -1.7% | 0.983 | -1.7% | 0.983 | |
| 1/1/2011 | +1.7% | 1.017 | +1.7% | 1.017 | |
| 1/1/2012 | +2.3% | 1.023 | +2.6% | 1.026 | |
| 1/1/2013 | +5.0% | 1.050 | +5.0% | 1.050 | |
| 1/1/2014 | -7.7% | 0.923 | -7.7% | 0.923 | |
| 1/1/2015 | -3.7% | 0.963 | -3.7% | 0.963 | |
| | 1/1/2016 | +1.9% | 1.019 | +2.5% | 1.025 |
| 1/1/2017 | -9.3% | .907 | -9.3% | .907 | |
| | 1/1/2018 | -12.1% | .879 | -12.8% | 0.872 |
| 1/1/2019 | -7.6% | .924 | -7.6% | 0.924 | |
| 1/1/2020 | -6.7% | .933 | 0.931 | ||
| 1/1/2021 | 0.0% | 1.00 | 0.0% | 1.000 | |
