18 Del. Admin. Code § 1303-6.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 1303-6.0 - Evaluating Experience Data

6.1 In determining the credibility and appropriateness of experience data, due consideration must be given to all relevant factors, such as:

6.1.1 Statistical credibility of premiums and benefits, e.g., low exposure, low loss frequency.

6.1.2 Experienced and projected trends relative to the kind of coverage, e.g., inflation in medical expenses, economic cycles affecting disability income experience.

6.1.3 The concentration of experience at early policy durations where select morbidity and preliminary term reserves are applicable and where loss ratios are expected to be substantially lower than at later policy durations.

6.1.4 The mix of business by risk classification.

18 Del. Admin. Code § 1303-6.0