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rating different coverage using different exposure bases,
all applicable coverages are rated using on, composite,
exposure base.

89. Retrospective rating
While experience rating and some forms of composite
rating assume that the past, with appropriate adjustments,
is predictive of the future, retrospective rating uses the
experience during the period to determine the costs for
the period.

This approach makes costs based on retrospective rating
plans more responsive to changes in experience and
more subject to unusual fluctuation in experience than
is the case with experience rating or composite rating
plans.

90. The NCCI Retrospective Rating Plan applies to workers
compensation and employer's liability for eligible
insureds. An insured must elect to participate in the
plan, and the insurer must agree.

91. The basic premium, which is a function of the
standard premium (exposure), provides for the
following costs :

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