Excess loss premium factor (ELP)

{
  "id": "MLC-T-INS-001375",
  "term": "Excess loss premium factor (ELP)",
  "field": "Insurance and risk management",
  "definition": "A factor in a retrospective rating plan that prices the per-claim loss limit, the cap on how much of any single claim counts toward the insured's retrospective premium. Multiplied by standard premium, it produces the charge for the insurer absorbing losses above that cap, and the charge is larger when the cap is set lower. It is used chiefly in workers' compensation plans such as the NCCI retrospective rating plan.",
  "abbreviation": "ELP",
  "url": "https://mlchart.com/terminology/insurance/excess-loss-premium-factor-elp/"
}