# Document

**Page 2**
**January 8, 1988**
**Mr. Dick Michaels**
**Re:** IBM Corporation
**Retrospective Premium Adjustment**

Please note the following:

- The maximum premium continues to apply in the 1-1-76/5-21-79 period, with a premium of $178,211 over the maximum.
- The 1-1-76/5-21-79 period is designated Final, since the ERP based on Paid Loss exceeds the maximum. No further computations will be made for this period.
- The maximum premium continues to apply in the 5-21-79/82 period, with a premium of $561,354 over the maximum.
- The 5-21-79/82 period is designated Final, only $400,000 remains for loss payments to develop a maximum premium based on paid losses. There is currently approximately $900,000 in estimated loss amounts incurred. No further computation will be made for this period.
- The minimum premium continues to apply for the Non-Owned Auto (5-21-80/82 period). This rating period is designated Final to concur with the retro rating period. No further computation will be made.
- The 10/31/87 LA171 loss run was used for the above periods. These loss runs were remitted to your office previously. Also included were the claim corrections provided by O.Kwik's 11-30-87 memo, as prepared by Chris Curcio 11-30-87 memo.

Please also note, there is $24,401.65 due Zurich as a result of commissions. Below is a breakdown of this amount:

| Policy | Premium Description | Gross | Net | Commission |
|--------|---------------------|-------|-----|------------|
| GGL3278678-02 | 13th installment 7-28-87 audit | 4,794,677 | 4,794,677 | (21,812.35) |
| BAP3278679-02 | 13th installment 6-17-87 audit | 1,849,729 | 1,849,729 | 42,090.30 |
| GA3429543-01 | 7-28-87 audit | (112,200) | (67,993.20) | (44,206.80) |
| MA3429706-02 | 7-28-87 audit | (1,200) | (727.20) | (472.80) |
| **$6,072,180.00** | **$6,047,778.35** | **(24,401.65)** |

Please be advised, these items have been deferred to the retro adjustment.

**Lynn M. Valone**
**312 143-6000**
**11.12.**
**24,401.65**

**MM 009803**