Loss Cost Multipliers (LCM)

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A Loss Cost Multipliers (LCM) is an adjustment multiplier to the loss cost (LC) that takes into consideration business expenses and profit.

  • Example(s):
    • If insurance company A has an LCM of 1.25 and insurance company B has an LCM of 1.500 then company B will charge 20 percent more for the same class code.
  • See: NCCI, U.S. Premium Calculation System.


References

2020

2020