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What does the 1.2 adjustment factor in the exposure base represent?

April 26, 2017adjustment base exposure Factor

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What does the 1.2 adjustment factor in the exposure base represent?

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This number (called the pure premium adjustment factor) is an algebraic factor that corrects for variations in the exposure base over time. It allows for historical continuity and ease of comparison with the exposure base used in the WCRA’s earlier years.