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'i~ase(J on this example, a general percentage rate change can be developed for <br />Public Protection Class impact on a specific property. Only the major factors are shown <br />in the rate structure. This is based on wood frame construction. Rate factors would <br />change for other classes of construction.? <br /> <br /> Change <br />Class 10 to Class 9 <br />Class 9 to Class 8 <br />Class 8 to Class 7 <br />Class 7 to Class 6 <br />Class 6 to Class 5 <br />Class 5 to Class 4 <br />Class 4 to Class 3 <br />Class 3 to Class 2 <br /> <br />Percent Decrease <br /> <br />15% <br /> <br /> 9% <br /> <br /> 5% <br /> <br /> 5% <br /> <br /> 5% <br /> <br /> 5% <br /> <br /> 8% <br /> <br /> 3% <br /> <br /> The incremental percents of change reveal that the highest reductions occur <br />between Class 10 (unprotected), Class 9 (semi-protected), and Class 8 (protected); plus <br />the change from Class 4 (protected) to Class 3 (protected). These marked differences <br />reflect significant changes in fire suppression capability as determined through historical <br />record analysis. It is emphasized that the above rate change factors are general in nature <br />and do not reflect any specific rate deviations. Furthermore, these rate relationships only <br />apply to specific rated property. <br /> <br />3.10 Experience Rating for Larqe Cities <br /> <br /> The insurance industry has determined that some cities and counties, generally <br />over 250,000 population, have sufficient loss costs to warrant experience rating. This <br />means that insurance premiums in a given city are adjusted annually based on Loss Cost. <br />Loss Cost represents the aggregate monetary value insurance companies lose by doing <br /> <br />The percent of rate change should be used as a general guide only. Adjustment <br />factors are used by each state. <br /> <br />30 <br /> <br /> <br />