This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ...is that the entire medical for a given year of issue in a particular state be compared with the total number of compensable accidents, after modifying this number for the difference between the waiting period in the actual experience and the conditions to which the experience is converted. In this way, we will ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ...is that the entire medical for a given year of issue in a particular state be compared with the total number of compensable accidents, after modifying this number for the difference between the waiting period in the actual experience and the conditions to which the experience is converted. In this way, we will get a figure which might be referred to as the cost per compensable case.5 A comparison of this value as found for the data to be converted with the same value for the latest policy year or basic level will give a ratio which might be applied to the actual medical in the experience to convert it to the basic level. In appendix A to this paper is given an exhibit sheet which has been worked out to present the combined experience of a classification converted by the method outlined above and a detailed statement of each step involved in the process.8 It will be noted that this exhibit sheet shows the actual experience by states as well as the converted experience both on state level and on a basic level. The number of accidents of each type are also shown and if such a sheet is prepared for each classification and each year of issue entering into the experience and then summary sheets in the same form are prepared for 4Even when the medical is treated as a separate pure premium unit it is desirable to have the cost analyzed by nature of injury to facilitate judging the dependability of the medical indication. 6It will not actually be the cost per case since it will include the cost of medical in noncompensable cases spread over the number of compensable cases. 8This process stated in such detail seems very long and involved but is not more so in fact than those used in previous revisions of workmen's compensation rates. groups of...
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