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Pages 32-33

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From page 32...
... 32 Responsible managers from the exploratory group to the board of the operating pool should be focused on the performance of the pool for its members and for their riders and public constituents. Periodic reviews by the service providers, including auditors and actuaries, should be directed toward these goals.
From page 33...
... Continual Improvement 33   # Description Calculations 1 Pure Loss Ratio Incurred Losses/Earned Contributions 2 Loss Expense Ratio Incurred ALAE/Earned Contributions 3 Combined Ratio Pure Contribution + Load Factor/Earned Contributions 4 Investment Ratio Investment Income (Excluding Income on Contributed Capital) /Earned Contribution 5 Overall Operating Ratio Combined Ratio – Investment Ratio 6 Liquidity Ratio Liquid Assets (Cash, Bonds)

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