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• Based 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 /> Change Percent Decrease <br /> Class 10 to Class 9 15% <br /> Class 9 to Class 8 9% <br /> Class 8 to Class 7 5% <br /> Class 7 to Class 6 5% <br /> Class 6 to Class 5 5% <br /> Class 5 to Class 4 5% <br /> Class 4 to Class 3 8% <br /> 110 Class 3 to Class 2 3% . _ <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 /> 3.10 Experience Rating for Large Cities <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 /> • <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 /> 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 />