An expected loss ratio factor is a factor applied to case incurred loss amounts of claims and discounted loss development factors so that the ratio of discounted developed loss to standard premiums for the entire state fund used in the actuarial calculations equals the expected loss ratios. By doing this, loss ratios will not be expected to change simply because the department changed the rates for one fund significantly more than the rates for another fund. The expected loss ratios are:

Separate factors will be calculated by fund and also by enrollment period at the time of each annual retrospective rating adjustment.