Linked above are the final option templates for settlement offers under Options 1, 2, and 3. The draft templates provided on April 30, 2026, have been updated as follows:
Option 1 - No Changes
Option 2 Changes
The Inputs tab has been updated to include Experience Modification factors for each respective policy year. In addition, the Ultimate Loss Group was added as an input from the RPA and guaranteed cost premium by policy year.
Average Surcharge tab has been removed. It has been replaced with three surcharge tabs, one for each policy year. Surcharge percentages by year are applied to guaranteed cost premium (excluding surcharges) by policy year.
The Actual Losses tab has been updated to remove inclusion of Aggregate Retention (Loss Limit).
The Entry Ratio tab has been corrected to use 0.94 instead of 1.30 (both based on the sample data) as the Maximum Loss and ALAE Ratio.
Ultimate Loss Group tab has been removed. The Ultimate Loss Group is now an input in Inputs tab used in the Insurance Charge tab.
CA Standard Premium tabs have been updated to include corresponding Experience Modification factors for each policy year.
The Retrospective Premium tab has been updated to remove calculation of surcharge amounts.
The Retrospective Premium tab: Minimum Plan Cost has been updated to be Total Standard Premium times the sum of the Expense Ratio and Insurance Charge.
The Retrospective Premium tab: Maximum Plan Cost has been updated to be 0.94 (based on sample data) times Total Standard Premium plus the Minimum Plan Cost from above.
The Restitution Amount tab has been updated to show separately the Retrospective Premium and Surcharges.
The Index tab was changed for the removal of the Ultimate Loss Group and the additions of each policy year's surcharge tab.
Option 3 Changes
The Final Cost tab has been updated to remove the calculation of surcharge amounts.
The Restitution Amount tab has been updated to show separately the Final Cost and Surcharges.
