refine this? Hello Wanted to get your approval on a change that we are looking to implement on the ACO pricing. There has been no directive from the reinsurers as of yet, but Richard and Guy Carp have suggested we formalize our approach on the pricing exposure with metro debits. Today, the ACO is priced based on garage state, which will remain the same. The issue comes in when the risk has auto exposure in multiple states, that drive a metro debit, however, we are only pricing the account off the garage state without the metro debit. The issue has come up a number of times at audit, where the reinsurers were questioning why we didn’t apply a metro credit, and we want to try and be proactive in our approach. We are looking to set a threshold for metro exposure in the portfolio.
So, if a risk has more than 20% exposure in a anyone of the metro areas, the entire account would be priced with the metro debit – so basically if a risk has more than an incidental exposure in a metro debit area, we would apply the change to the entire account. Today, this is not happening.
If there was a case where a risk had multiple metro debit areas, the risk would be priced with the metro debit from the location with the highest vehicle count Let me know what you think?
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