Allstate Insurance Company Businessowners Colorado - Revisions

Allstate Insurance Company Businessowners Colorado Explanatory Memorandum This packet consists of revisions to the Businessowners rating program for Allstate Insurance Company in the state of Colorado.With this filing, Allstate is revising company loss cost multipliers, adopting an ISO circular, and is revising a handful of proprietary rules. Summary of Attachments Colorado Indication Memorandum/Exhibits (Attachments I-VII) Equipment Breakdown Explanatory Memorandum Company Rule Pages Selected Rate Changes With this filing, the combination of all changes results in a 5.8% statewide rate level change including Equipment Breakdown. Equipment Breakdown is fully reinsured with Hartford Steam Boiler and this filing results in a 0.8% revenue change which is not accrued by Allstate. ISO Circular Adoption Provided below is a list of the most recent circular types that are being adopted in this filing: Designation NumberCircular Type/Description BP-2016-RLA1Loss Cost Loss Cost Multiplier With this filing, Allstate will be revising its loss cost multipliers (LCMs) to offset the impacts from the adoption of ISO circulars and achieve the overall desired rate level. Please refer to the Loss Cost Multiplier rule (CO-BP-LOSS-1) for more information. Equipment Breakdown With this filing, Allstate is revising its Equipment Breakdown Coverage Rule to refine our Businessowners rate structure. Please refer to the Equipment Breakdown Explanatory Memo and Equipment Breakdown Coverage Rule (CW-BP-EB-7) for additional details. Property Insurance Adjustment In an effort to help insured's keep up with inflationary trends, Allstate is introducing a new mandatory endorsement providing an automatic annual increase to the Business Personal Property coverage limit. The annual increase will be 2% unless a different percentage is selected. Rates were judgmentally selected based on analysis of the ISO Division Five, Rule 38 G. Inflation Guard. Please refer to rule CW- BP- BPP AUTOMATIC INCREASE-1 for further information.