Page 278 - ic92 actuarial

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Used to adjust the past loss experience to cost levels that will be
expected during the projected period; includes the effect of
inflation and other factors that may affect loss frequency ( the
number of claims per exposure) or severity (the average size of
a claim); consideration that is given to past and prospective change
in claims cost

Trending
The necessary adjustment of historical premium and loss statistics
to present levels or expected future levels; used to reflect
measurable changes in insurance experience over time caused
by dynamic economic and demographic forces; make the data
useful for determining current and future expected cost levels.

Trust Fund
Legal vehicle established by the entity to allow for the systematic
payment of claims and related expenses associated with a self-
insurance mechanism.

Ultimate Incurred Losses
Final value of losses incurred by the insurance company as of
the evaluation date.

Ultimate Losses 278

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