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MAIP Quota Share Premium and Quota Share Credit Premium Calculation

The Statistically Reported Data, Rate Data, SDIP Data, and Credit Data tables available for download on the MAIP website should be used to calculate MAIP Quota Share Premiums and Credit Premiums.

MAIP Quota Share Premium Calculation Examples

Please Note that Statistically Reported Data records with Rate Class Codes of AO are not used in the Quota Share determination. Additionally, any records with Rate Class 00 (invalid class code reported) or Territory 00 (invalid premium town code) are not included in the Quota Share determination. The Rate Data table does not have rates to calculate premium for these cases.

To Calculate MAIP Statistically Reported Quota Share Premium:

Use the CAR ID Code 9 records on the Statistically Reported Data table.

For any exposure record on the Statistically Reported Data table, SDIP factors, rates, and subsidies will be needed to compute the premium.

Determine the RateDate by the EffYr and EffMo on the Statistically Reported Data table using the following chart:

For example, if EffYr = '2024' and EffMo = '04', the RateDate would be '20230501'.

If EffYr = '2024' and EffMo = '09', the RateDate will be '20240501'.

Matching the Statistically Reported Data to SDIP Data tables by the RateDate and SDIPPoints fields, two factors will be found. Of the two factors, the correct factor needs to be selected according to the rate class. For rate classes (RateClass on the Statistically Reported Data table) 10, 15, 30, 41-44, 61-64, 75, 76, and 78, 80 and 81 select the experienced factor (RateClassGroup = 1 on the SDIP Data table), otherwise select the inexperienced factor (RateClassGroup = 0 on the SDIP Data table).

Once the proper SDIP Factor is matched to the record, the next step is to match the premiums and subsidies to the record. By matching the record on the Statistically Reported Data table by RateDate, RateClass, and Terr on the Rate Data table. This match will find 4 records for the different coverages:

Cov = 1, BI

Cov = 2, PIP

Cov = 4, PDL

Cov = 5, Optional BI

Next, for the 2009 and consecutive rate years, for SDIP Points equal to 98 and 99, using the Rate and Subsidy for each coverage found on the Rate Data table, you will calculate the premium. The first step is to sum the BI, PIP, PDL, and Optional BI rates then subtract the corresponding subsidies and multiply this total by 1 minus the SDIP Factor. That total will then be multiplied by the exposures for a MAIP Quota Share Premium. The formula is listed below for this scenario:

((((BI Rate - BI Subsidy) + (PIP Rate - PIP Subsidy) + (PDL Rate - PDL Subsidy) + (Optional BI Rate - Optional BI Subsidy)) * (1 - SDIP Factor))) * Exposures

Otherwise, for SDIP Points not equal to 98 and 99, sum the BI, PIP, PDL, and Optional BI rates then subtract the corresponding subsidies and multiply this total by 1 plus the SDIP Factor. That total will then be multiplied by the exposures for a MAIP Quota Share Premium. The formula is listed below for this scenario:

((((BI Rate - BI Subsidy) + (PIP Rate - PIP Subsidy) + (PDL Rate - PDL Subsidy) + (Optional BI Rate - Optional BI Subsidy)) * (1 + SDIP Factor))) * Exposures

To Calculate MAIP Quota Share Keep-out Credit Premium -

Use the CAR ID Code 8 records on the Statistically Reported Data table.

For finding the Quota Share Credit Premium, first calculate the Quota Share Premium as described in the previous section.

Determine the CreditDate by the EffYr and EffMo on the Statistically Reported Data table using the following chart:

For example, if EffYr = '2024' and EffMo = '01', the CreditDate would be '20230401'.

If EffYr = '2024' and EffMo = '09', the CreditDate will be '20240401'.

When calculating the Quota Share Premium, make sure to carry the rate class, territory, and SDIP points. The Credit Premium will then be multiplied by the MaxFactor field from the Credit Data table that matches the credit date, rate class, territory, and SDIP points from the calculated premium. The MaxFactor field is the maximum factor of the factors for class-territory credit and SDIP 10+ credits. Please note that SDIP 10+ factors for 2009 and consecutive years are equal to zero, but the table is still in the same format for all rate dates.

To Calculate MAIP Quota Share Take-out Credit Premium

Use the records on the Reported Take-out Credit Data table.

For finding the Take-out Credit Premium, first calculate the Quota Share Premium as described above. When calculating the Quota Share Premium, make sure to carry the credit date, rate class, territory, and SDIP points. The calculated Premium will then be multiplied by the Take-out Factor for the credit date; for the 2009 and consecutive rate years, the Take-out Factor is equal to 1; refer to CAR Rule 29 for more details. Data on the Reported Take-out Credit Data table is grouped by MAIP ("M") and CAR ("C") Take-out eligibility.