Presented by: Thomas Finwall 7/14/11

1. LEADERSHIP CONFERENCE Presented by: Thomas Finwall7/14/11

2. The split point will be increased from $5,000 to $15,000 over a 3-year transition period. • After the transition, the split point will be indexed for claim inflation in subsequent updates. • Filing for these changes will likely be made in 3rd quarter this year; an NCCI staff member told me that the effective date of the change will roll out, state by state, in the late 2012 – early 2013 time frame.

4. Alaska • Colorado • Georgia • Louisiana • Massachusetts • New York • Texas • Oregon • California • Delaware • Michigan • New Jersey • New York • Pennsylvania NCCI Monopolistic States States that don’t reduceMedical Only by .70 Non-NCCI States • North Dakota • Ohio • Washington • Wyoming

5. Terms ACTUARIAL LAYMAN’S Primary Excess Ratable Excess = = = Frequency Severity Mitigated Severity

6. VS Frequency Severity

7. VS Frequency Severity

8. VS Frequency Severity Primary Split Point to $1,500

9. VS Frequency Severity Primary Split Point to $1,500

10. EXPECTED ACTUAL Frequency Frequency

11. ERA RATING REFLECTS A DECREASE OF 70% MEDICAL ONLY PRIMARY AND EXCESS LOSSDOLLARS WHERE ERA IS APPLIED <.70> (6) 5,000 ACT Incurred x .30 1,500 Act/P <3,500> (6) 15,000 ACT Incurred x .30 4,500 Act/P <10,500> ACTUAL TOTAL EXPECTED TOTAL

12. Alaska • Colorado • Georgia • Louisiana • Massachusetts • New York • Texas • Oregon • California • Delaware • Michigan • New Jersey • New York • Pennsylvania NCCI IOWA, New Mexico, & West Virginia – ERA Just Approved! Monopolistic States States that don’t reduceMedical Only by .70 Non-NCCI States • North Dakota • Ohio • Washington • Wyoming

13. RTW RTW

14. QBS =