WMOD00202

• Applicant: Water Enhancement Authority
• Project Name: Grand Mesa
• Date: 2/1/1999
• Weather Modification - Doc Type: Report

Glossary of Terms

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Annual policy fee: This dollar amount is charged annually on every.Pinnacol Assurance policy for fIXed administrative costs for
writing and renewing a polic)'.

Class: These are class codes which apply to your.policy. The object afthc clbsitication procedure is to assign one basic
classification Which best describes the business .of the emplOYer within a stale. Iris the business which is classified, not the individual
employments, occupations or operations within 'a business. Ohder special circumstances separate classifications may apply.
Cost CoDtainment Discount: Employers onlY be eligible for a Cost Containment Certification Discount 0(2-10% if they implement the
six step safety plan and become certified by the State Cost Containment Certification Board.

Deductible Adjustment: This is choosing a credit for'the optional deductible plan. A deductible is, the amount you agree to
reimburse PinnacoJ Assurance for oach,claim.
Designated Pro'Yider DisCOUDt: A 2.5 % pt'emium discount will be: awardC:d to employers who have implemented a designated medical
provider program as outlined in Colorado Insurance Commissioner's Regulation 91-4 and 91-5. This discount applies to all policies, exc.ept
for those who pay the minimum premium ~mount only.

Experience mndiflcation~cUustments: If you qualify for experience modification, your past loss experience is compared to the
average or ~expec::ted~ experience for businesses in your class. This comparison is converted to a loss of experience factor, which we apply
to your premium. If your losses are less than average, your premium will be reduced. If your losses are more than average, your premium
will be increased.

Increased limits: This is the additional premium we charge to increase the Jimit for Employer's Liability above the standard
coverage provided: Bodily Injury by Accident: $lOO,OOO...each employee; Bodily Injury by Disease: S500,OOO..policy limit.

Loss: The amount we paid out for medical and compensation costs on a claim.

Manual premium: Payroll/l00 times the rate for the business classification.
Minimum premium: Annual premium win never be leu than minimum premium. regardless of your payrOll. even if you terminate your
policy before the expiration date.
Modified premium (subtotal): This is the premium after the experience modification is applied.

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Rate: The premium charge developed for your business classification. Rates are based on loss statistics for each class. Most
rates are applied per $100 of payroll. For example, if you have Sloo,ooo of payron under a classification with a 55.00 rate, the manual
premium is $5,000($100,0001100 = 1,000 x $5.00 = $5,000). Others are per capita.

CODE
AC
CL
CO
EM

DESCRIPTION CODE
Agricultural Corporate Officer Ie
Contract Labor IN
Corporate Officer SE
Employw WP

DESCRIPTION
Independent Contractor
Individual Owner
Subcontractor Employee
Working Parmer

Right (0 Appe.al Classification and Experience Mooitlcation: Pinnacol Assurance can ch.arge and colle<;t any additional amount of
money not included in'the initial.prernium charged as a result of a jOb 'misclassitication or experience modiflcation. If you have any
questions regarding fit bploybt classification/modification used to calculate your premium, contact your underwriter or your insurance
agent. Pinn.acol As&ut~e Qf its representative must eKplain why a particular employee classification/modification was u~, to eliminate
allY possible confusion.
~If you still disagree, you.may further appeal to have your classification reviewed. Send your request, in writing, to Pinnacol Assurance's
Classification and Rating Conunittee at the above address. The Committee will review your file and will issue a final decision.
~lfyou still disagree with the Pinnacol Assurance review, Section 8~5S-102. C.R.S. gives you the right to appeat Pinnacol Assurance's (mal
decision by filing written notice with the Worker's Compensation Classification Appeals Board within 30 days of the final decision. The
address of the Worker's Compensation Appeals Board is: Work.er's Compensation Appeals Board, clo NeC!, 7220 West Jefferson Ave., Suite 310,
Lakewood, CO, 80235. Please send Pinnacol Assurance.a copy of your appeal.

Scheduled Rating: Pinnacol Assurance offers a premium discount based on your risk characteristics.
Seat SUrcharge: This represents the seat surcharge for the operation of private airplanes to transport employees and is not
subject to discount or deviations on your bill.
Subject premium; Manual premium + increased limits premium ~ deductible adjustment.

Weigbted loss ratio a(ljustment: PiMacol Assurance offers premium discount based on your three-year los5 ratio (losses divided by
prem~um). The lower your losses, the greater your discount.