FA-63232 / Insurance premium rating / Member archive
Retrospective rating adjustment: Net recoveries produce negative limited losses · case 02
Salvage exceeding losses reduces the retro premium below the basic charge.
Case contract
Input standard premium, basic, lcf, tax (x1000), min and max (per mille of standard), loss_limit, claims (negative = recovery). max<min -> 'invalid bounds'. Limited losses = max(0, sum(min(claim, limit))). Retro = (standard*basic + limited*lcf)*tax, bounded by [standard*min, standard*max] (bounds already include tax), rounded half-up. Return [limited, retro].
Why this case matters
Retrospective plans settle premium after losses, so each conversion factor and bound has to sit at the right step.
One recorded failure
Sample boundary fixtureThis sample comes from the broken implementation of a controlled reproducer.
| Boundary fixture | Actual | Expected | Outcome |
|---|---|---|---|
| net recovery floors at zero | [-23951, 424671] | [0, 424671] | Failed |
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