[[Actuarial Notes Wiki|Wiki]] / [[Exam 5 (CAS)]] / **Increased Limits Factors** ## Definition ==Increased Limits Factors (ILF)== are multipliers applied to base rates to charge for policy limits above the base limit, reflecting the higher expected losses at increased limits. ## Methodology ``` ILF = Expected Losses at Higher Limit / Expected Losses at Base Limit Then: Rate at Higher Limit = Base Rate × ILF ``` ## Considerations - Loss severity distribution - Limit profiles - Claims above limits - Excess of loss patterns ## Related Concepts - [[Classification Ratemaking#Definition]] ## References - Werner & Modlin, Chapter 11