**Binder #1114**

**May 20, 1986**

1) Terms are as follows:

- **Tax Multiplier:** 1.033
- **LCF:** 1.08 applied to total loss limit
- **Basic:** .1125 ($843,750)
- **Minimum:** BXTM ($871,594)
- **Maximum:** 2.33 ($17,475,000)
- **Loss Limit:** $1,000,000 (Auto) allocated loss expense
- **Standard:** $7,500,000

2) Required Letter of Credit: $5,500,000

3) Required Loss Fund: $465,000 (payable in full by 5/20/86)

4) Collected premium in first twelve months ($1,159,694 for GL and Auto) is at a commission rate of 29.1%. Commission on audit is 4.5%.

5) Premium (GL) to be collected:
   - $838,454
   - 1,000 Canadian GL premium
   - $837,454

a) Deposit of $69,797 76,455 = $69,797
   11 installments of $69,797 each = $76,455
   - $837,454

6) GL rate $.493990 per $1,000 of payroll.

7) Estimated Payroll: $10,980,000,000

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