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	Expense Loading
	Detailed expense breakdown with fixed/variable classification and dollar amounts
	Expense Ratio Summary (from Assumptions)
	Expense Category	% of Premium	Est. $ Amount	Per Policy $	Type	Notes
	Commission & Brokerage	12.0%	$10,740,000	$716	Variable	Agent/broker compensation
	Other Acquisition Costs	2.5%	$2,237,500	$149	Variable	Marketing, underwriting new business
	General & Administrative	5.5%	$4,922,500	$328	Fixed	Overhead, salaries, rent, IT
	Premium Tax	2.2%	$1,969,000	$131	Variable	State premium tax rate
	Regulatory & Licensing Fees	0.3%	$268,500	$18	Fixed	Filing fees, licensing costs
	Claims Adjustment (LAE)	7.0%	$6,265,000	$418	Variable	Loss adjustment expenses (ALAE + ULAE)
	Reinsurance Cost	3.5%	$3,132,500	$209	Variable	Ceded premium for reinsurance
	Contingency / Other	0.5%	$447,500	$30	Fixed	Risk margin for unforeseen expenses
	Total Expenses	33.5%	$29,982,500	$1,999
	Fixed vs Variable Expense Breakdown
	Type	% of Premium	$ Amount	% of Total Expense
	Variable Expenses	27.2%	$24,344,000	81.2%
	Fixed Expenses	6.3%	$5,638,500	18.8%
	Total	33.5%	$29,982,500	100.0%
	Expense Allocation by Risk Class
	Risk Class	Exposure %	Variable Exp $	Fixed Exp $	Total Exp $
	Class 1 - Preferred	28.0%	$6,816,320	$1,578,780	$8,395,100
	Class 2 - Standard	36.0%	$8,763,840	$2,029,860	$10,793,700
	Class 3 - Moderate	20.0%	$4,868,800	$1,127,700	$5,996,500
	Class 4 - Substandard	11.0%	$2,677,840	$620,235	$3,298,075
	Class 5 - High Risk	5.0%	$1,217,200	$281,925	$1,499,125
	Total	100.0%	$24,344,000	$5,638,500	$29,982,500