A rating system for property & casualty insurance consists of the rates to be charged, including any rating relativities, rating rules (including minimum premiums), and supplementary rating information (including rating plans such as an experience rating plan). An insurer contracted with the advisory organization to do so, may use the advisory organization’s filed loss costs, rating rules, rating plans, etc. when filing its rates with the state Department of Insurance (DOI). However, the insurer must also file any item left blank in the advisory organization’s rating rules (e.g., minimum premiums) and a loss cost multiplier (LCM) to adjust the advisory organization’s loss costs to the insurer’s rates. The LCM will adjust the loss costs to add in any additional expenses and profit provision. Any deviations an insurer wants to make to its LCM and/or the advisory organization’s reference filing must be filed.

The documents below include an NAIC Loss Cost Memorandum and Instructions and the Loss Cost Filing Document (aka Loss Cost Multiplier (LCM) Form). These documents are adopted by the NAIC and can be selected for use by a state DOI for any P/C line of business, including workers' compensation. Please refer to a state’s filing requirements to know whether these NAIC forms are accepted.

Effective: Nov. 8, 2022

NAIC Loss Cost Memorandum and Instructions

The NAIC Loss Cost Filing Document is provided as an Excel file and as a PDF file. The only difference is the Excel file contains formulas and calculations, whereas the PDF file must be entirely manually input. Note that some states may require the Excel file document to be converted into a PDF file prior to uploading the document in SERFF.

NAIC Loss Cost Filing Document (Excel)

NAIC Loss Cost Filing Document (PDF)

NAIC Loss Cost Filing Document (PDF Fillable Form)

NAIC Contact:  Kris DeFrain, kdefrain@naic.org