California Retrospective Rating Plan

The California Retrospective Rating Plan is an optional loss-sensitive rating plan in which the premium is periodically adjusted based on the policyholder's loss experience for the policy term. The policyholder may pay more premium, or receive premium back from the insurer, depending on loss experience; that amount may depend on the per claim and aggregate loss limits agreed upon by the policyholder and insurer. The resources below contain Loss Elimination Ratios (LERs) and supplemental information to help understand patterns of loss.