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	Premium Calculation
	Pure premium derivation, expense loading, profit provision, and final gross premium by risk class
	Premium Rate Building Blocks (Aggregate)
	Component	% of Premium	Amount ($)
	Expected Loss Ratio	62.0%	$55,474,214
	Loss Adjustment Expense (LAE)	7.0%	$6,265,000
	Catastrophe Loading	1.5%	$1,342,500
	Large Loss Loading	1.0%	$895,000
	Total Loss & LAE Ratio	71.5%	$63,976,714
	Commission & Brokerage	12.0%	$10,740,000
	Other Acquisition Costs	2.5%	$2,237,500
	General & Administrative	5.5%	$4,922,500
	Premium Tax	2.2%	$1,969,000
	Regulatory & Licensing	0.3%	$268,500
	Reinsurance Cost	3.5%	$3,132,500
	Contingency	0.5%	$447,500
	Total Expense Ratio	26.5%	$23,717,500
	Target Underwriting Profit	5.0%	$4,475,000
	Investment Income Credit	-1.2%	-$1,109,484
	Total (Loss+Exp+Profit-Inv)	101.7%	$91,059,730
	Permissible Loss Ratio	69.7%	$62,416,984
	Indicated Rate Change	2.5%
	Gross Premium Calculation by Risk Class
	Risk Class	Relativity	Adj Loss Ratio	Pure Premium	Expense Load	Profit Load	Gross Premium
	Class 1 - Preferred	0.75	42.6%	$2,544	$984	$186	$3,713
	Class 2 - Standard	1.00	56.8%	$3,391	$1,312	$248	$4,951
	Class 3 - Moderate	1.25	71.0%	$4,239	$1,640	$309	$6,189
	Class 4 - Substandard	1.55	88.1%	$5,257	$2,034	$384	$7,674
	Class 5 - High Risk	2.00	113.7%	$6,783	$2,624	$495	$9,902
	Total / Weighted Avg	1.09	62.0%	$3,698	$1,431	$270	$5,399