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Filing at a Glance Company: Physicians Mutual Insurance Company Product Name: LTC Rate Stability Gen 4C P103PA P104PA State: Pennsylvania TOI: LTC03I Individual Long Term Care Sub-TOI: LTC03I.001 Qualified Filing Type: Rate - M.U. (Medically underwritten) Date Submitted: 06/12/2018 SERFF Tr Num: PHYS-131476897 SERFF Status: Assigned State Tr Num: PHYS-131476897 State Status: Received Review in Progress Co Tr Num: Implementation Date Requested: 11/01/2018 Author(s): Tracy Comba, Scott College, Kyle Malone, Mark Lehman Reviewer(s): Jim Laverty (primary) Disposition Date: Disposition Status: Implementation Date: State Filing Description: Proposed aggregate 105% increase on 119 policyholders of Physicians Mutual Gen 4 comprehensive LTC forms P103PA and P104PA. SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified Product Name: LTC Rate Stability Gen 4C P103PA P104PA Project Name/Number: / PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

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Page 1: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Filing at a Glance

Company: Physicians Mutual Insurance Company

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

State: Pennsylvania

TOI: LTC03I Individual Long Term Care

Sub-TOI: LTC03I.001 Qualified

Filing Type: Rate - M.U. (Medically underwritten)

Date Submitted: 06/12/2018

SERFF Tr Num: PHYS-131476897

SERFF Status: Assigned

State Tr Num: PHYS-131476897

State Status: Received Review in Progress

Co Tr Num:

ImplementationDate Requested:

11/01/2018

Author(s): Tracy Comba, Scott College, Kyle Malone, Mark Lehman

Reviewer(s): Jim Laverty (primary)

Disposition Date:

Disposition Status:

Implementation Date:

State Filing Description:

Proposed aggregate 105% increase on 119 policyholders of Physicians Mutual Gen 4 comprehensive LTC forms P103PA andP104PA.

SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #:

State: Pennsylvania Filing Company: Physicians Mutual Insurance Company

TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

Page 2: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

General Information

Project Name: Status of Filing in Domicile: Authorized

Project Number: Date Approved in Domicile: 11/16/2015

Requested Filing Mode: Review & Approval Domicile Status Comments:

Explanation for Combination/Other: Market Type: Individual

Submission Type: New Submission Individual Market Type:

Overall Rate Impact: 105% Filing Status Changed: 06/13/2018

State Status Changed: 06/20/2018

Deemer Date: Created By: Tracy Comba

Submitted By: Tracy Comba Corresponding Filing Tracking Number:

State TOI: LTC03I Individual Long Term Care

Filing Description:

RE: P103PA, R962K, R963K, R964K, R965K, R967K, R968K, R981K P104PA, R965K, R967K, R968K, R977K, R978K, R982K, R987K

This filing is submitted for your consideration and approval of a proposed rate revision on the above-captioned policy form andriders. A prior filing (SERFF Tracking Number PHYS-130966673) involving the above-captioned policy forms and riders wasdisposed of on 8/09/2017 with a rate increase approval less than what was originally requested. In an effort to achieveequitable rates nationwide, this filing represents the amount of the rate increase not approved in the prior filing.

With regard to the riders, the proposed increase applies only when the rider is attached to either of the above base policyforms. The above forms and riders are currently on file with your department. These policy forms are guaranteed renewableand no longer issued.

The projected lifetime loss ratio for these forms is in excess of original expectations, resulting in a proposed multi-tiered rateincrease which varies by benefit period. Please refer to the table in the Actuarial Memorandum, Section 2. Scope of Filing,which details the proposed increases. Any proposed increase will apply to policies on their policy anniversary date following a60-day customer notification period. In no event will any policy receive a rate increase less than one year after receiving themost recent rate increase implemented in your state.

It is a high priority to us that customers keep their long-term care coverage. As we did with the previous rate increase, we willoffer customers an option to downgrade their coverage or elect a paid-up option if they want to mitigate the impact of the rateincrease. A dedicated toll-free customer service number will be available for a representative to answer customer questions. Acopy of the rate-up letter that will be sent to customers upon approval of this filing is attached.

We look forward to your approval of this filing. If you have any questions, please do not hesitate to contact me via SERFF or atthe e-mail address or phone number shown below.

Sincerely,

Mark Lehman, FSA, MAAAPhone: (402) 930-2435E-mail: [email protected]

SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #:

State: Pennsylvania Filing Company: Physicians Mutual Insurance Company

TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

Page 3: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Company and Contact

Filing Fees

Filing Contact InformationTracy Comba, Re-Rating Analyst [email protected]

2600 Dodge Street

Omaha, NE 68131

402-633-5781 [Phone]

402-633-1096 [FAX]

Filing Company InformationPhysicians Mutual InsuranceCompany

2600 Dodge Street

Omaha, NE 68131

(402) 633-1188 ext. [Phone]

CoCode: 80578

Group Code: 367

Group Name:

FEIN Number: 47-0270450

State of Domicile: Nebraska

Company Type:

State ID Number:

Fee Required? No

Retaliatory? No

Fee Explanation:

SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #:

State: Pennsylvania Filing Company: Physicians Mutual Insurance Company

TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

Page 4: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Rate Information Rate data applies to filing.

Filing Method: SERFF

Rate Change Type: Increase

Overall Percentage of Last Rate Revision: 20.000%

Effective Date of Last Rate Revision: 11/01/2017

Filing Method of Last Filing: SERFF

SERFF Tracking Number of Last Filing: PHYS-130966673

Company Rate Information

Company

Name:

Overall %

Indicated

Change:

Overall %

Rate

Impact:

Written Premium

Change for

this Program:

Number of Policy

Holders Affected

for this Program:

Written

Premium for

this Program:

Maximum %

Change

(where req'd):

Minimum %

Change

(where req'd):Physicians MutualInsurance Company

105.000% 105.000% $420,399 119 $400,380 174.000% 0.000%

SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #:

State: Pennsylvania Filing Company: Physicians Mutual Insurance Company

TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

Page 5: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Rate/Rule Schedule

Item

No.

Schedule

Item

Status

Document Name

Affected Form Numbers

(Separated with commas) Rate Action Rate Action Information Attachments

1 Exhibit 4 - Current andProposed Rate Pages

P103PA, R962K, R963K,R964K, R965K, R967K,R968K, R981K

Revised Previous State Filing Number:PHYS-130966673Percent Rate Change Request:102

PA_2018_Exh 4 Gen4C P103.pdf,

2 Exhibit 4 - Current andProposed Rate Pages

P104PA, R965K, R967K,R968K, R977K, R978K,R982K, R987K

Revised Previous State Filing Number:PHYS-130966673Percent Rate Change Request:105

PA_2018_Exh 4 Gen4C P104.pdf,

SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #:

State: Pennsylvania Filing Company: Physicians Mutual Insurance Company

TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

Page 6: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 7: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 8: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 9: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 10: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 11: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 12: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 13: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 14: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 15: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 16: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 18: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

�������������� ������������������� ������������������������������������������������������ ������������� ���!����������������"�# ��������� ��$��# ��������� ��$��# ��������� ��$��# ��������� �%�$��# ��������� ��&$��# �������������� '�&�� (�������� '�&�� (�������� '�&�� (�������� '�&�� (�������� '�&�� (�������� '�&�� (�������� ()� ���� ��� ���� ��� ���� ��� ���� ��� ���� ��� ���� ���*+,-. /01. 0-+ /0-. 0-/ /0*2 031 *021 033 *01- 03* *04* 0/2-* /0+/ 0-2 /05* 0-/ /0/- 031 /0./ 033 *0+3 03* *045 03.-/ /0+5 05* /05/ 0-5 /0/1 031 /0.3 033 *0+- 03* *044 03.-3 /02. 05* /05- 0-5 /0/+ 03+ /0.5 035 *0+- 03/ *044 03.-- /025 05* /05+ 0-5 /03- 03+ /0.+ 035 *0+5 03/ *041 03.-5 /02+ 05/ /04* 0-5 /034 03+ /0** 035 *0+4 03/ *041 03.-4 30.* 05/ /044 0-+ /03+ 03+ /0*- 035 *0+2 03/ *01. 03.-1 30.5 05/ /041 0-+ /032 0-/ /0*5 035 *02. 03/ *01. 03.-+ 30.2 05- /01. 0-+ /0-/ 0-/ /0*4 031 *02* 03/ *01* 03.-2 30** 05- /013 0-2 /0-- 0-/ /0*2 031 *02* 03/ *01* 03.5. 30*4 054 /014 0-2 /0-1 0-/ /0/. 031 *02- 033 *01/ 03.5* 30/- 054 /0+/ 0-2 /05/ 0-5 /0/3 031 *02+ 033 *01- 03*5/ 30-5 05+ 30.* 05/ /04+ 0-+ /0-. 0-/ /0*- 035 *0+4 03/53 3052 04/ 30*5 05- /012 0-2 /05* 0-5 /0// 031 *02- 0335- 301- 043 30/4 051 /023 05/ /04* 0-+ /033 03+ /0.3 03355 -0.- 042 305/ 04* 30*5 054 /0+/ 05* /0-+ 0-5 /0*2 03154 -0/. 01* 3043 04/ 30/4 051 /023 05/ /055 0-5 /0/1 03151 -03- 01- 301- 043 3033 051 30*. 05- /01* 0-2 /032 0-/5+ -04* 0+* -0.* 041 305- 04* 30/2 051 /02. 05* /05- 0-552 -024 0+- -03. 01- 3012 045 3051 04/ 30*. 054 /013 0-24. 50/- 0+2 -055 0+. -0.3 042 301- 045 30/+ 051 /02. 05*4* 501- 022 -024 0+- -032 015 -0*. 01* 3052 04/ 30*4 0544/ 40-3 *0*/ 5054 025 -0+2 0+- -0-4 0+. 30+2 041 30-3 04*43 4012 *0*5 50+5 *0.. 50*4 0+2 -01. 0+3 -0*. 01* 3043 04/4- 103. *0/5 403* *0.2 5055 025 50.2 0++ -0-* 0+. 30+2 04145 1013 *033 401. *0*5 50+5 *0.. 50-. 02/ -04+ 0+/ -0** 01*44 +032 *0-3 10/1 *0/5 4034 *0*/ 50+. *0.. 50** 0++ -05/ 0+.41 20// *051 102/ *031 4024 *0/. 4034 *0*/ 5054 02+ -02* 0+-4+ *.0// *01- +0+. *05/ 1013 *03- 10.4 *0/- 40*1 *0.2 50-5 02/42 **03+ *02- 20+. *04+ +04. *0-2 10+1 *032 402. *0*2 40.+ *0.51. */042 /0*1 *.02/ *0+1 205+ *041 +01+ *05- 104+ *03- 4015 *0*+1* *-0/2 /0-- */0/+ /0*/ *.015 *0+1 20+4 *01* +044 *05/ 104* *0331/ *40*4 /014 *30++ /032 */0.2 /0.2 **0.3 *02. 2044 *04+ +05. *0-413 *+0/* 30*/ *5044 /042 *3043 /031 */0-- /0*1 *.02. *0+2 205+ *04+1- /.034 30-4 *10-2 30.. *50/5 /045 *30++ /0-. */0*1 /0*/ *.01* *0+415 //014 30+2 *205+ 303+ *10./ /024 *5054 /01. *304. /03+ **022 /0.+14 /5035 -03- /*01+ 3015 *+022 30/+ *10/2 30.* *50*/ /045 *3035 /03311 /1025 -0+* /-0./ -0*/ /.02/ 304/ *20*- 3033 *4011 /02- *-05+ /0531+ 3.01* 50/4 /40-3 -054 //022 -0.* /*0.1 304+ *+0-5 30// *40./ /01112 3304- 5014 /+02/ -024 /50*2 -031 /30.+ -0./ /.0/* 305/ *1054 30.4+. 34055 40/1 3*0-5 50-3 /103+ -01/ /50.2 -031 /*025 30+* *20*. 303.+* -.0.. 40+5 3-0-* 502. /202+ 50*2 /10-3 -0+* /-0.. -0*+ /.0++ 304/+/ --0/2 104. 310+. 405. 3/023 501/ 3.0*3 50/5 /4032 -04* //02- -0.*+3 -+0+* +031 -*044 10*5 340/- 40/1 330// 5011 /20.+ 50.2 /50/1 -032+- 5-0*+ 20/+ -40/3 1025 -.0/- 4022 340+4 40-3 3/0/1 504/ /+0.4 -0++

Page 19: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

�������������� ������������������� ������������������������������������������������������ ������������� �!�"����������������#�$ ��������� ��%��$ ��������� ��%��$ ��������� ��%��$ ��������� �&�%��$ ��������� ��'%��$ �������������� (�'�� )�������� (�'�� )�������� (�'�� )�������� (�'�� )�������� (�'�� )�������� (�'�� )�������� )*� ���� ��� ���� ��� ���� ��� ���� ��� ���� ��� ���� ���+,-./ 01/2 13+ 214/ 1.3 21.. 10, 2100 104 21++ 103 +15. 102.+ 01+6 13. 21,2 1., 2130 1.2 2105 10, 21+6 103 +15, 102.2 0122 13. 21,. 1.5 213. 1.2 21./ 10, 21+5 103 +15, 102.0 0126 13. 21,5 1.5 213, 1.3 21.2 10, 212/ 103 21/+ 100.. 0125 136 2150 1.5 216+ 1.3 21.4 1.2 2122 104 21/2 100.3 0106 136 2156 13+ 2166 1.3 21., 1.2 2120 104 21/2 100.6 01./ 134 2155 13+ 2164 1.3 213+ 1.2 212. 104 21/0 100.4 01.0 134 01/2 13+ 214/ 1., 2132 1.2 212. 104 21/3 100., 01., 134 01/, 132 2140 1., 2130 1.2 2124 104 21/3 100.5 013. 13, 01+/ 132 2146 1., 2133 1.3 212, 104 21/, 1003/ 013, 13, 01+3 132 2145 1.5 213, 1.3 2100 104 21/5 1003+ 0164 16+ 0122 13. 21,. 1.5 2166 1.3 210, 10, 21+. 10332 01,5 160 01.0 134 01/2 132 21,2 1.5 2132 1.2 2124 10430 .1/3 164 0134 13, 01+6 13. 2153 13+ 2163 1.3 210, 10,3. .12. 165 0142 162 012, 136 01/, 132 2140 1., 21.4 1.233 .134 143 .1/2 163 0133 16+ 0125 136 2156 13+ 2164 1.,36 .14+ 1,+ .1+3 165 016, 162 01.2 13, 01/, 132 2146 1.534 .154 1,0 .106 14+ 01,/ 160 013. 16+ 01+6 13. 21,2 1.53, 3125 1,, .162 1,/ .1/, 164 014. 160 010, 134 2155 13235 3140 152 .15, 1,0 .104 14. .1/. 164 016+ 162 0122 1366/ 61/. 155 3124 1,, .162 1,/ .124 14+ 01,/ 160 01./ 1346+ 616/ +1/5 3144 153 31/5 1,. .166 1,+ .12/ 14+ 0142 16262 412+ +1+5 612. +1/3 31.4 15/ 31/2 1,. .130 1,/ 0156 16460 416+ +123 616/ +1+2 3145 15, 3125 1,5 .145 1,2 .1+4 14+6. ,1+, +104 41/5 +1+, 6122 +1/3 3140 15, 31+. 1,4 .132 1,/63 ,164 +1.0 41.5 +123 613, +1+2 61/3 +1/. 31.0 15/ .145 1,266 51./ +136 ,1+. +104 41+. +1+5 6136 +1+2 31,5 155 31+6 1,,64 +/134 +14. 51+2 +132 415, +10. 4100 +123 61.0 +1+2 3142 15,6, ++143 +15. +/1++ +16, ,1,4 +1.5 ,1+3 +105 41+3 +12/ 6100 +1/565 +01/5 21+4 ++12. +1,4 51,6 +164 51/5 +133 4154 +104 41/0 +1+54/ +.13, 21./ +2133 21/, ++1// +1,6 +/1+2 +14+ ,1,4 +132 41,6 +10.4+ +61.0 214+ +.1+2 2104 +21./ 21/, ++1./ +152 +/1// +14/ ,1,3 +13242 +,103 01/2 +3145 2163 +01,6 210. +21,/ 21+4 ++120 +15/ 51,2 +16,40 2/16, 01.0 +41,/ 2156 +316+ 2163 +.1.. 21.. +2166 21+3 ++1/. +1,44. 201+2 01,+ +51,, 010/ +41.. 215. +61+. 214+ +.1+0 21./ +2106 21/543 231,. .10/ 22122 014+ +5133 0124 +,1/. 01/6 +31,0 2165 +01,3 210446 2,144 .1,/ 2.144 .1++ 2+14. 016, 2/1/5 01./ +416/ 01// +3105 216244 0+12. 31+6 241+/ .130 20135 0155 2+144 0165 +51/6 0123 +6164 21,04, 0.106 314+ 251,2 .156 23156 .104 20153 .1/3 2/153 0134 +,102 01++45 04163 6122 02163 31.. 2,1.+ .1,+ 2612/ .1.+ 22156 01,5 2/1/6 01.0,/ ./15+ 6146 031.5 315/ 0/1,, 31+5 2,1., .1,0 2.15. .126 2+1,+ 0142,+ ..14, 41.+ 0,1,. 61.3 00145 314+ 0+1+5 3124 24125 .160 2015+ .1/6,2 .,1/, 4154 .+1.+ 61,4 061/. 61/6 001./ 3160 25123 .154 2313, .10.,0 32154 ,146 .3162 4135 0516, 616, 061,+ 6122 02120 31.4 2,1+5 .1,+,. 3,1,+ 5143 3/162 ,1.0 ..1/3 41.0 ./1,6 6150 031,/ 61/5 0+125 310/

Page 20: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 21: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 22: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 23: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 24: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 25: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 26: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 28: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 29: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 30: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 31: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 32: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 33: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 34: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 35: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 36: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 37: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 38: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 39: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 40: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 41: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 42: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 43: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 44: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 45: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 46: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 47: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 48: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 49: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 50: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 51: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 52: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 53: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

�������������� ������������������������������ ��������������������������� !�������� ��������!�����"����#���$��%&�'(������&������� �#���$����)�*���������#���$��+�, ��������� ��-��, ��������� .�-��, ��������� /�-��, ��������� �'�-��, ��������� �.0-��, �������������� &�0�� 1�������� &�0�� 1�������� &�0�� 1�������� &�0�� 1�������� &�0�� 1�������� &�0�� 1�������� 1�� #��� ��� #��� ��� #��� ��� #��� ��� #��� ��� #��� ���23456 7689: 26865 95827 :866 538:3 38;; 57899 <833 5;85= <8;7 =38:< 787552 7=8=9 2685< 978=3 :8=< 96873 389; 5<839 3826 5=85= <8=< =:877 78<55; 758;7 26879 9<86: :89; 928;7 387; 538=6 3823 5=8<7 <855 =:8:6 78<:5= 798;6 268<7 9<83< :87; 9283; 38<2 538<9 38;7 55826 <85< 5682= 783=55 77826 268:5 93893 :8<9 9;856 383; 5:82: 38=9 55859 <893 568=7 783959 7<869 2286: 9:8;: :83< 9;8:7 38:= 5:87; 3852 558<: <87; 56876 78:657 7<8:7 228;9 76865 26862 9=89= :866 9686< 3857 59822 <873 56835 78:95< 73833 22856 768<< 2682; 9586: :82= 9689= 3895 59855 <8<5 52867 78::53 7:832 22899 7289; 268;9 95879 :8;2 968:9 387; 598<< <8<: 528;: <8625: <68<2 228<6 7;8;7 268=3 998;; :8;: 92856 38<6 57863 <835 52899 <86=96 <287= 22837 7=862 26857 99832 :8=3 9283; 38<3 57852 <8:6 528<7 <86:92 <=869 2;86: 758;= 268<6 978:= :897 9;833 38:7 5<8=< 3863 5;872 <8;<9; <3867 2;8:6 7387= 22852 768<: 268;2 9785< :895 9689: 3876 59896 <8<59= 328=< 2=85< <2899 228:; 7=8=< 2687: 93833 :8:9 9;8<7 38:< 5<859 386395 358<6 2=8:: <585: 2;8=: 798:: 2286: 728=6 268=3 958:6 :8=; 5:8=: 38=:99 :28=9 29826 368=; 2=8=3 <2827 228:7 77863 2282: 9:8;2 26863 9=8;7 :86597 :5879 2987< 3=8;; 2=837 <=8<= 2;856 73853 22893 728=9 2685; 998;6 :8=39< ::8:2 27895 3<8;< 25892 <7872 2;83: <687< 228:7 7=8== 268<7 978;= :89793 2678=< 2<876 :;833 29859 32897 2=8<; <98;5 2;8<5 7<856 22896 9:83: 268279: 225852 238:= ::8:; 27872 3<8<= 258<7 368:9 2=8<6 <;89= 2;8== 7585= 268:776 2;6833 2:8:: 269897 2<899 :;879 2989: 39896 25857 <7872 2=86= 73869 2289<72 2=;829 ;2833 22985= 2:823 2628=2 2<86= :=85: 2983= 3=8<9 258;= <585; 2;8777; 25582: ;=837 2;58:7 ;6836 26:8<2 2385< 266835 2<86: :68=5 298=7 <:8;7 2=85<7= 29;8=; ;982: 2=28:9 ;28:7 229839 2:85: 26785: 2386; :985= 278;= 3=8<; 258;;75 27=87; ;<826 252836 ;=876 2;5892 ;68:= 22585= 2:8=7 26;895 2<859 3:8:< 298;:79 2<=8=< ;387: 2968;= ;58:< 2=2833 ;;82: 2;28;5 ;689; 26387; 2385: :98;: 2782377 23<8:3 =282; 27;83< ;<826 25;8:: ;5867 2=2852 ;;8;7 22<8<3 ;686= 26=8=6 2<8997< ;228<= =986= 23;86< =68;: 29:83; ;78:2 25<86= ;5837 2;38<: ;28:; 22586: 2:85673 ;=986= =38:2 ;6;822 ==87= 2<<857 ;:839 27=8;= ;<876 25=866 ;58=2 2;7873 ;289=7: ;728<2 5=8== ;;9869 =<852 2:<872 ==8;9 2328<5 =68<7 29:8;; ;<826 252867 ;=8:3<6 ;:28<5 538;3 ;96837 528<9 ;;68;9 =<867 ;6;89< =58;< 2<<85< =682: 29<8;= ;78<;<2 =;385; 958=7 ;3;8=: 578:3 ;5<8:5 528<2 ;;3865 =389< 2::8<7 ==8:: 2<78:3 =6863<; =7<86< 768<7 =29875 9;85: ;<<822 57875 ;978=7 5=8=7 ;;5893 =38;; 2:78=< ==8=3<= 52=83; 73853 =99832 9:8;6 =2;8=7 9;895 ;3:866 538:6 ;9=825 5=863 ;;2856 =<875<5 57;82: <785< =:<852 77826 =538:= 9387: =;;8<7 95872 ;3;8<3 5386: ;5<8;< 5;865<9 92<8;= 3987; 5558<9 <=8:: =:685< 7987: =728;= 72822 =27857 9=835 ;<78<5 5<865<7 9<9872 :98;3 5:58:3 3;8=9 5=589< <=82= 56;862 73862 =9;827 9:8:6 =6<8:: 9;8=9<< 7;9825 26=85< 95;8;: :682: 5<28:7 <:8=< 5=985; <=87< =32859 758:6 ===897 978<6<3 73<8=9 22=8<9 9:78;9 ::82: 9238:; 3<8=2 5<38<5 32866 52:8=: <28=9 =778<9 7;8=;<: <9;8<3 2;5893 79=867 263875 9738== :989: 9;58=9 338<2 59:8=6 <3829 56287< 738;:36 3238;= 2=9852 <6:83; 223826 72<8<7 26=8:; 97:8:= :7856 5::8;3 358:5 5=7872 <58;;32 3:9829 253825 <<7895 2;:82< 7<9832 22=873 7;=892 26985< 95782: :;8:; 5<<87< 328;23; :728:3 29:8;; 3;3825 2=<8<< <;68<6 2;28;5 7738;; 22=86= 9398=3 ::89: 9228:= 3<8653= 269:87; 2<98=3 :2;823 2928<7 <:=835 2==89= <=7862 2;5892 755836 26:8<; 97=83< :983535 22<7859 2:58<; 262;8<3 27385< 3328=< 2538;9 32<823 2=38;9 <298:6 2;2832 7;7869 26785=39 >?@ ;27829 >?@ 23<862 >?@ 27589: >?@ 29=857 >?@ 2=98;2 >?@ 22382537 >?@ ;=<8<5 >?@ ;698<= >?@ 23286= >?@ 2738<: >?@ 2538<= >?@ 2;:8:93< >?@ ;9:82; >?@ ;;58;= >?@ 2:<8=5 >?@ 235862 >?@ 27;863 >?@ 25287=33 >?@ ;<:837 >?@ ;5;82< >?@ ;2=82; >?@ 2:38<; >?@ 2<986< >?@ 29;8:<3: >?@ ;::857 >?@ ;9:82; >?@ ;;386= >?@ ;2;87; >?@ 23<8=; >?@ 27=8<;:6 >?@ =2<85= >?@ ;<5877 >?@ ;528<6 >?@ ;;98=: >?@ 2:3897 >?@ 2<=89=:2 >?@ ===8=2 >?@ ;33856 >?@ ;9=83; >?@ ;=787= >?@ ;63853 >?@ 23;823:; >?@ =5:8:7 >?@ =6;832 >?@ ;77896 >?@ ;53853 >?@ ;238:6 >?@ 2:28;::= >?@ =7<853 >?@ =2<8:: >?@ ;<:83; >?@ ;768:= >?@ ;;:837 >?@ ;66837:5 >?@ =3983; >?@ ===83< >?@ ;:=836 >?@ ;<=8:9 >?@ ;528=7 >?@ ;26833:9 >?@ 569829 >?@ =96899 >?@ =63896 >?@ ;3<879 >?@ ;9=852 >?@ ;;2855:7 >?@ 5;9856 >?@ =7386: >?@ =;=83: >?@ =6;86= >?@ ;7786< >?@ ;=;892:< >?@ 557873 >?@ =37896 >?@ =56822 >?@ =2<827 >?@ ;<:856 >?@ ;55829:3 >?@ 5738:: >?@ 569836 >?@ =9<822 >?@ ===866 >?@ ;:=8=< >?@ ;978=9:: >?@ 5:;857 >?@ 5;786: >?@ =<58:7 >?@ =5:879 >?@ =6386; >?@ ;7:82=266 >?@ 92<863 >?@ 55<855 >?@ =:=8<9 >?@ =7<825 >?@ =;=855 >?@ ;3;872

Page 54: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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/74:7 0/4/5 /5452 894:5 //425 :8480 /345/ :/496 645626 /37476 /9496 6/425 /740/ 0/460 /547: 8:478 //493 :0472 /3456 :/460 647993 /32488 /9405 65490 /7469 0540: /5493 88439 //4:3 :0406 /3423 :5476 642/9/ /3:406 /:4/7 62425 /245: 02497 /5487 80496 //407 83452 /3496 :74:7 64:/95 //24/0 /8455 /33407 /9457 63473 /74:/ 07460 /54:0 8943: //472 :8466 /345997 //6435 /8467 /394/: /9408 624/5 /24/0 08492 /745/ 80457 //486 8340: /348392 /57400 /04:0 /36429 /:426 68466 /2488 6/430 /7482 0/427 /5450 87489 //4/799 /77490 534/2 //0435 /8486 /394:7 /9462 60457 /2407 08403 /7457 86495 /543/9: /70429 53400 /55475 /042: /36426 /:492 /3/405 /947: 6/43/ /7487 05427 /542798 /204:5 55422 /56423 /649/ //2403 /847/ /3:4:9 /:4// 62450 /2452 02453 /548390 /904/6 57400 /78482 53489 /55455 /0422 //74:3 /84/7 /33423 /94/8 064:9 /749296 /8345/ 594:6 /20453 55470 /7/42: /6407 /554/6 /0422 /38468 /:458 6:427 /2492:3 /86488 584/3 /9:499 574:7 /70406 53467 /564/3 /6420 //2438 /845/ /3/40: /9478:/ /6:498 564:9 /8/4/9 59407 /9/405 5546/ /2/4/7 5/450 /5248/ /0405 ///47: /:40/:5 536460 7/48/ /07432 584:/ /:3462 52458 /93498 55482 /7/499 /6407 //9480 /842::7 55/488 77427 /67475 564/0 /8343/ 594:0 /96432 52433 /70467 53469 /55456 /042::2 57047/ 79468 538485 7/472 /054:0 58496 /8340: 5940/ /26450 55492 /7/423 /6405:9 595428 704// 553439 77453 /67497 56455 /0/43/ 58475 /904/7 57409 /76455 53466:: 5874:0 2/450 5704:3 7:43/ 536403 7/4:0 /6:457 564:7 /8/42: 59400 /93406 55480:8 7/9430 28497 585400 2/4/9 578465 79465 552438 77405 /69489 56498 /8547/ 5:43/:0 726407 95403 735466 29487 5:24/5 76402 520480 78495 5/8477 75486 /6/450 50406:6 706495 90480 778479 93465 5624// 2247: 588433 2/480 525439 7:495 5/7433 754/783 2724/6 :949/ 78:437 9:489 75840/ 2642: 730480 2:490 5:648: 23485 578425 794038/ 200488 8748: 257477 :7409 7:6437 994:8 7284:3 9542: 7374:6 29407 5:8458 2347785 978483 0/4/5 2:9483 83459 239466 :/458 7034:3 98470 775420 934/8 500403 2749887 :3:4/5 6/427 952469 86453 2984:2 :643: 256435 :2485 782405 9:49: 759492 264/582 :8:466 /354/7 90:477 0042: 9//4/8 884/9 2864/0 85456 2/04:9 :74/6 7:74:5 9240089 8984:7 //2473 :9:457 66433 985436 0:450 97:456 03463 2:0497 83483 23:462 :/42/8: 0274/0 /584/6 873475 //34/0 :7:4:: 6:43: 96:40/ 63437 95/423 804:8 295400 :047288 6/6455 /704:8 86345/ //6452 :00406 /37462 :23459 6:4:5 996478 02470 209402 8745680 /3/34:5 /9542: 0:0403 /7/430 898476 //2450 837465 /3:45/ :/2466 65480 9724/2 0349686 //3:406 /::466 69/492 /27499 056497 /594/7 88346: //:472 :8749: /3/4:/ 909432 0045803 /5374/5 /0/492 /372475 /9:432 63/4:8 /7:435 070435 /5:425 8754/5 //342: :7946/ 6946:0/ /7/:455 /60490 //7/495 /83482 60:425 /2040/ 6/:488 /70477 03346: /53405 :694:8 /3246905 /7894:9 538490 //05490 /80427 /373469 /99497 6:04:: /2:4/7 07:499 /5:455 879432 //346/07 /9/9456 5504:7 /7354:5 /6:492 //7949: /8/472 /3::460 /:346: 65/428 /76437 0364:7 /554/:02 /:05479 59740: /22:459 5/0453 /5:3403 /63457 //024:/ /80489 /357439 /92472 060465 /794:709 ;<= 50/488 ;<= 525455 ;<= 5//4/7 ;<= /60423 ;<= /8/472 ;<= /934970: ;<= 73646/ ;<= 5::427 ;<= 57545: ;<= 5/0452 ;<= /00426 ;<= /:94:308 ;<= 778407 ;<= 563427 ;<= 5974/6 ;<= 57840: ;<= 539422 ;<= /0349300 ;<= 7:2408 ;<= 7/74:/ ;<= 587422 ;<= 59:463 ;<= 55/40: ;<= /6246:06 ;<= 763478 ;<= 779496 ;<= 565490 ;<= 582406 ;<= 578423 ;<= 5304:363 ;<= 2/740/ ;<= 79948/ ;<= 7/34/5 ;<= 56/478 ;<= 59/4:9 ;<= 55/4//6/ ;<= 272495 ;<= 78749/ ;<= 7594:3 ;<= 739462 ;<= 5:245: ;<= 5754/665 ;<= 29:455 ;<= 7654/6 ;<= 72/463 ;<= 75/45: ;<= 588422 ;<= 52748:67 ;<= 286432 ;<= 2//403 ;<= 790466 ;<= 77847/ ;<= 56/472 ;<= 59946:62 ;<= 935460 ;<= 275478 ;<= 78:462 ;<= 7924/9 ;<= 739406 ;<= 5:048869 ;<= 9504/5 ;<= 292435 ;<= 769486 ;<= 78/40: ;<= 75/4/0 ;<= 5054/06: ;<= 992497 ;<= 28:482 ;<= 2/94:/ ;<= 763420 ;<= 778459 ;<= 56:45868 ;<= 905450 ;<= 933498 ;<= 27:478 ;<= 2/3433 ;<= 792430 ;<= 7//4/760 ;<= ://47: ;<= 959490 ;<= 2904/6 ;<= 273420 ;<= 78/403 ;<= 75:4:866 ;<= :2/462 ;<= 99/408 ;<= 20/430 ;<= 295437 ;<= 763478 ;<= 727433/33 ;<= :82437 ;<= 986429 ;<= 9394/7 ;<= 2824:7 ;<= 236465 ;<= 7:34/8

Page 55: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 56: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 57: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 58: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 59: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 60: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 61: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 62: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 63: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 64: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 65: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 66: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 67: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 68: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 70: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 72: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 73: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 77: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 78: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 79: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 80: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 81: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 82: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 83: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 84: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 85: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 86: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 87: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 88: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 89: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 95: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 98: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 99: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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/:2426 63460 //0495 /9486 /37435 /548076 /88480 :346/ /924:: 674:/ /5:4:/ 6:4/2 /2:4:8 6/472 /65468 /0400 //3469 /747/7: 6//466 :/407 /024// 69499 /7/48: 62422 /5/425 66409 /:64:/ /8489 //7427 /945072 667487 :2467 /8940: 68406 /9:489 67468 /76492 62450 /264/8 6/422 /654/6 /040775 623426 :7460 638458 :/47/ /02468 6940/ /96423 67436 /53475 66496 /:6457 6343/77 673475 :84:5 66946/ :2468 /88406 :34/: /07483 6046/ /7:469 6247: /2:49/ 6/47979 :33430 25460 658483 :8463 667459 :24/0 6/:423 :6463 /07422 604/6 /724// 6249770 :::4/2 53460 600459 2:45: 65/455 :9482 6:7482 :549: 639433 :/462 /064/8 6942878 :9348: 55480 :6/468 20429 6034/3 26465 67:498 :8406 6:3453 :2499 636400 :347/93 2/:428 764:8 :504/: 5243: :/6466 294/3 682435 224:7 65748/ :0499 6674/5 :24/39/ 275429 93462 23:4/8 7340: :5/422 5:43: ::/435 28485 6084/8 2:476 652455 :042396 5/64/3 99467 22:453 77483 :07470 504:: :76429 52478 :/7477 29498 695439 2/4279: 599467 09438 288489 9542: 2:5405 75495 230473 7/47: :59433 5:402 :/3432 2749992 722497 89468 55042: 02465 207405 9:427 2574:0 70402 :80492 734/7 :274:3 5646295 96/459 /30405 762489 82468 522402 064/8 5/3492 99435 22746/ 794:2 :09452 5042997 03:432 /6/4/7 785456 /32486 7374:6 8/420 570423 05495 287458 92482 2:/4:/ 7543099 09542/ /:6438 956450 //:455 757430 80488 738495 86436 5:6496 034:8 27649/ 7840390 87645: /2546: 06942/ /62402 96/4:6 /30402 79342/ /3/4/5 505478 004:9 530493 9749798 /3524/0 /58435 83746: /:7495 983432 //846/ 9:2465 //3403 72/453 87498 5594/8 0243203 //2540: /9648/ 805437 /2047/ 050492 /68455 9804/3 /6342/ 789468 /35466 73547: 8/4:80/ /65:457 /084/: /39947: /76450 8:8422 /2/496 09:4/6 /:/492 97640/ //54/3 776457 8848:06 /:/34/5 /89475 //67467 /78486 80/405 /204/5 86645/ /:846/ 98749/ /6346: 933432 /3547/0: /22:4// 6/9499 /623459 /094/9 /30/453 /7:4/0 /3/74/5 /5:4:6 099473 /:64:8 99/438 //74:502 /73646: 62/497 /:994:9 639406 /633492 /0/4/9 //60463 /9346/ 8924:2 /2943/ 0574// /684/905 ;<= 6704:2 ;<= 6:3470 ;<= 63/437 ;<= /00482 ;<= /7:4/0 ;<= /2:4:907 ;<= 6854/5 ;<= 65:497 ;<= 66/4/0 ;<= 63940: ;<= /98453 ;<= /5949:09 ;<= :6/495 ;<= 697473 ;<= 62/4/: ;<= 667455 ;<= /85477 ;<= /9/48/00 ;<= :29420 ;<= 680478 ;<= 67342/ ;<= 622477 ;<= 6//4:3 ;<= /0547008 ;<= :9/403 ;<= :/847/ ;<= 69047: ;<= 67/499 ;<= 6674/3 ;<= /8047783 ;<= :82438 ;<= ::0490 ;<= 6854:6 ;<= 699453 ;<= 6:8479 ;<= 6/34588/ ;<= 2/:40/ ;<= :5549/ ;<= :/34/6 ;<= 68/4:9 ;<= 65/475 ;<= 66/4/686 ;<= 2:2456 ;<= :9:456 ;<= :65472 ;<= :35482 ;<= 672467 ;<= 6:64/08: ;<= 257466 ;<= :864/8 ;<= :2/483 ;<= :6/469 ;<= 699422 ;<= 62:49782 ;<= 29843: ;<= 2//403 ;<= :50488 ;<= ::94:/ ;<= 68/4:2 ;<= 65548585 ;<= 536480 ;<= 2:64:9 ;<= :97482 ;<= :524/2 ;<= :35408 ;<= 67049987 ;<= 5604/6 ;<= 252436 ;<= :85498 ;<= :9/400 ;<= :6/4/0 ;<= 6064/089 ;<= 552452 ;<= 29749/ ;<= 2/547/ ;<= :83420 ;<= ::946/ ;<= 6874:680 ;<= 506467 ;<= 533459 ;<= 2:74:9 ;<= 2/3433 ;<= :52438 ;<= ://4/:88 ;<= 7//4:7 ;<= 565450 ;<= 2504/8 ;<= 2:3420 ;<= :9/403 ;<= :67479/33 ;<= 72/482 ;<= 55/409 ;<= 20/430 ;<= 25643: ;<= :834:9 ;<= :2:43/

Page 100: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 101: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 102: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 103: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 104: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 105: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 106: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 107: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 108: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 109: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 110: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 111: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 112: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 113: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 114: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 115: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 117: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 118: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 119: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 120: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 121: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 122: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 123: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 124: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 125: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 126: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 127: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 128: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 129: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 130: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 131: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 132: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 133: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 134: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 135: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 136: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

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Page 139: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

������������������ ����������������������������������������������� !" �#�$"%&��'������������(�)�������������� !" $*�"&��+!&,�"'����-)�.��',/!&��0��"*�+!&,�"'����()�1��2�������/��3� ��4�5� "'!�6�5����%�'��!�&�!&�&���,���7� "��!*�6�������*�� !" �%6�8��91���/��()���6�*�6 �'���*�!�'�!&�&���,���7� "��!*�6�������*�� !" �%6��/����,������"'��!'��/������,/���()�:;<$�+���%��9�������� !'���/��="������67�&� !�''"��7��'���''"�������&7� "��!*�6��/���%�>��="����� �'�/�6�����&�%6��-98)7��9?)7��'��((9)���&*�,�!>��69

Page 140: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Supporting Document Schedules Satisfied - Item: Transmittal Letter (A&H)Comments:

Attachment(s): PA_2018_Transmittal Letter LHTD-1 Gen 4C.pdfPA_2018_Transmittal Letter LHTD-1 Gen 4C Pg 2.pdf

Item Status:Status Date:

Bypassed - Item: Actuarial Certification (A&H)Bypass Reason: N/A - This is a rate filing.Attachment(s):Item Status:Status Date:

Satisfied - Item: Actuarial Memorandum and Explanatory Information (A&H)Comments:

Attachment(s):

PA_2018_Exh 3 Gen 4C.pdfPA_2018_Exh 3 Gen 4C.xlsxPA_2018_Act Memo Gen 4C - Rate Stability.pdfPA_2018_Exh 1 Gen 4C.pdfPA_2018_Exh 2 Durational Gen 4C.pdfPA_2018_Exh 2 Non-Durational Gen 4C.pdf

Item Status:Status Date:

Bypassed - Item: Advertisements (A&H)Bypass Reason: N/A - This is a rate filing.Attachment(s):Item Status:Status Date:

Bypassed - Item: Authorization to File (A&H)Bypass Reason: N/AAttachment(s):Item Status:Status Date:

SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #:

State: Pennsylvania Filing Company: Physicians Mutual Insurance Company

TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

Page 141: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Bypassed - Item: Insert Page Explanation (A&H)Bypass Reason: N/A - This is a rate filing.Attachment(s):Item Status:Status Date:

Bypassed - Item: Rate Table (A&H)Bypass Reason: N/A - This is a rate filing. Current and proposed rates are attached to the Rate/Rule Schedule tab.Attachment(s):Item Status:Status Date:

Bypassed - Item: Replacement Form with Highlighted Changes (A&H)Bypass Reason: N/A - This is a rate filing.Attachment(s):Item Status:Status Date:

Bypassed - Item: Reserve Calculation (A&H)Bypass Reason: N/A - This is a rate filing.Attachment(s):Item Status:Status Date:

Bypassed - Item: Variability Explanation (A&H)Bypass Reason: N/A - This is a rate filing.Attachment(s):Item Status:Status Date:

Satisfied - Item: Customer Rate-Up and Change of Coverage Form

Comments: Please see the attached rate-up letter and change of coverage form which will be sent to customers at least 60 days prior to anyrate increase approved by your Department.

Attachment(s): N228-N5 GPO (100615).pdfPM2452-N5 Coverage Change Form - Final (100615).pdf

Item Status:Status Date:

SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #:

State: Pennsylvania Filing Company: Physicians Mutual Insurance Company

TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

Page 142: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Attachment PA_2018_Exh 3 Gen 4C.xlsx is not a PDF document and cannot be reproduced here.

SERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #:

State: Pennsylvania Filing Company: Physicians Mutual Insurance Company

TOI/Sub-TOI: LTC03I Individual Long Term Care/LTC03I.001 Qualified

Product Name: LTC Rate Stability Gen 4C P103PA P104PA

Project Name/Number: /

PDF Pipeline for SERFF Tracking Number PHYS-131476897 Generated 06/20/2018 03:41 PM

Page 143: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Revised July 12, 2017 / Effective January 1, 2018

1

Life, Accident & Health, Annuity, Credit Transmittal Document

1. Prepared for the State of

Department Use Only 2. State Tracking ID

3. Insurer Name & Address Domicile Insurer License

Type NAIC

Group # NAIC # FEIN

# State #

4. Contact Name & Address Telephone # Fax # E-mail Address

5. Requested Filing Mode If Combination or Other are selected, please explain:

6. Company Tracking Number 7. New Submission Resubmission Previous file #

Individual Franchise

8. Market Group

Small Large Small and Large

Employer Association Blanket Discretionary Trust Other:

9. Type of Insurance

10. Product Coding Matrix Filing Code

11. Submitted Documents

FORMS Policy Outline of Coverage Certificate Application/Enrollment Rider/Endorsement Advertising Schedule of Benefits Other

Rates New Rate Revised Rate

FILING OTHER THAN FORM OR RATE: Please explain: _________________________________________

SUPPORTING DOCUMENTATION

Articles of Incorporation Third Party Authorization Association Bylaws Trust Agreements Statement of Variability Certifications Actuarial Memorandum Other_______________________________________________

LHTD-1, Page 1 of 4

© 2018 National Association of Insurance Commissioners

47-0270450805780367Accident & Health

NebraskaPhysicians Mutual Insurance Company 2600 Dodge St. Omaha, NE 68131

Pennsylvania

LTC03I.001 Qualified

LTC03I Individual Long Term Care

PHYS-131476897

(402) 930-2732 [email protected]

Tracy Comba 2600 Dodge St. Omaha, NE 68131

(402) 633-5781

Review & Approval

Reset Form

Page 144: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Effective January 1, 2018

© 2018 National Association of Insurance Commissioners 2

12. Filing Submission Date

Amount Check Date 13 Filing Fee

(If required) Retaliatory Yes No Check Number

14. Date of Domiciliary Approval

15. Filing Description:

16. Certification (If required)I HEREBY CERTIFY that I have reviewed the applicable filing requirements for this filing, and the filing complies with all applicable statutory and regulatory provisions for the state of .

Print Name Title

Signature Date:

LHTD-1, Page 2 of 4

Mark Lehman Digitally signed by Mark Lehman Date: 2018.06.12 16:22:21 -05'00'

11/16/2015

Rate Increase for Long-Term Care Policies and Riders

View Complete Filing Description

AVP & Actuary

06/12/2018

Pennsylvania

Mark Lehman, FSA, MAAA

06/12/2018

Page 145: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Effective January 1, 2018

© 2018 National Association of Insurance Commissioners 3

17. Form Filing Attachment This filing transmittal is part of company tracking number This filing corresponds to rate filing company tracking number

Document Name Replaced Form Number

Description

Form Number Previous State Filing Number

01 Initial Revised Other ____________

02 Initial Revised Other ____________

03 Initial Revised Other ____________

04 Initial Revised Other ____________

05 Initial Revised Other ____________

06 Initial Revised Other ____________

07 Initial Revised Other ____________

08 Initial Revised Other ____________

09 Initial Revised Other ____________

10 Initial Revised Other ____________

LHTD-1, Page 3 of 4

N/A This is not a Form Filing.

Page 146: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Effective January 1, 2018

© 2018 National Association of Insurance Commissioners 4

18. Rate Filing Attachment This filing transmittal is part of company tracking number This filing corresponds to form filing company tracking number Overall percentage rate indication (when applicable) Overall percentage rate impact for this filing %

Document Name

Description

Affected Form Numbers

Previous State Filing Number

01 New Revised

Request +____% -____% Other ___________

02 New Revised

Request +____% -____% Other ___________

03 New Revised

Request +____% -____% Other ___________

04 New Revised

Request +____% -____% Other ___________

05 New Revised

Request +____% -____% Other ___________

06 New Revised

Request +____% -____% Other ___________

07 New Revised

Request +____% -____% Other ___________

08 New Revised

Request +____% -____% Other ___________

09 New Revised

Request +____% -____% Other ___________

10 New Revised

Request +____% -____% Other ___________

LHTD-1, Page 4 of 4

SERFF Tracking Number of Last Filing105

N/A

PHYS-131476897

R963K

R964K

P103PA

R962K

Long-Term Care Tax-Qualified Policy

5% Compound Inflation Protection Rider

Joint Waiver of Premium Rider

5% Simple Inflation Protection Rider

Long-Term Care Non Tax-Qualified

Survivorship Benefit Rider

105

105

PHYS-130966673

PHYS-130966673

PHYS-130966673

PHYS-130966673

PHYS-130966673

PHYS-130966673

Policy

5% Compound Inflation Protection Benefit Rider

R967K

R965K

R981K

R968K

PHYS-130966673

PHYS-130966673

R977K

P104PA

PHYS-130966673

PHYS-130966673

Shortened Benefit Period Nonforfeiture Rider

Guaranteed Purchase Option Inflation Protection Rider

105

105

105

105

105

Equipment & Transportation Rider

105

105

105

Page 147: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Effective January 1, 2018

© 2018 National Association of Insurance Commissioners 4

18. Rate Filing Attachment This filing transmittal is part of company tracking number This filing corresponds to form filing company tracking number Overall percentage rate indication (when applicable) Overall percentage rate impact for this filing %

Document Name

Description

Affected Form Numbers

Previous State Filing Number

01 New Revised

Request +____% -____% Other ___________

02 New Revised

Request +____% -____% Other ___________

03 New Revised

Request +____% -____% Other ___________

04 New Revised

Request +____% -____% Other ___________

05 New Revised

Request +____% -____% Other ___________

06 New Revised

Request +____% -____% Other ___________

07 New Revised

Request +____% -____% Other ___________

08 New Revised

Request +____% -____% Other ___________

09 New Revised

Request +____% -____% Other ___________

10 New Revised

Request +____% -____% Other ___________

LHTD-1, Page 4 of 4

SERFF Tracking Number of Last Filing105

N/A

Protection Rider

5% Simple Inflation Protection Rider

PHYS-131476897

R987K

R978K

R982K

PHYS-130966673

Guaranteed Purchase Option Inflation

PHYS-130966673

PHYS-130966673

Shortened Benefit Period Nonforfeiture Rider

105

105

105

Page 148: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Discount Rate = 4.50% Cumulative Rate Increase % = 85.31% Rate Increase Request = 104.80%

Implementation Date = 11/1/2018

Original Earned Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

Accumulated Past 349,325,663$ 375,750,243$ 104,240,149$ 27.7% 375,750,243$ 104,240,149$ 27.7%

Discounted Future 90,492,599$ 166,599,300$ 673,879,596$ 404.5% 283,000,285$ 589,813,986$ 208.4%

Lifetime (with interest) 439,818,262$ 542,349,543$ 778,119,745$ 143.5% 658,750,528$ 694,054,135$ 105.4%

Lifetime (no interest) 372,820,119$ 504,751,223$ 1,564,063,141$ 309.9% 682,911,155$ 1,370,264,200$ 200.7%

Calendar YearOriginal Earned

Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

1994 - - - N/A - - N/A

1995 - - - N/A - - N/A

1996 - - - N/A - - N/A

1997 - - - N/A - - N/A

1998 - - - N/A - - N/A

1999 - - - N/A - - N/A

2000 - - - N/A - - N/A

2001 15,421 15,421 - 0% 15,421 - 0%

2002 1,244,708 1,244,708 - 0% 1,244,708 - 0%

2003 5,476,478 5,476,478 296,438 5% 5,476,478 296,438 5%

2004 13,614,515 13,614,515 1,137,144 8% 13,614,515 1,137,144 8%

2005 20,918,731 20,918,731 1,700,473 8% 20,918,731 1,700,473 8%

2006 21,268,132 21,268,132 2,132,652 10% 21,268,132 2,132,652 10%

2007 20,728,525 20,728,525 3,424,039 17% 20,728,525 3,424,039 17%

2008 20,075,147 20,075,147 2,665,011 13% 20,075,147 2,665,011 13%

2009 19,525,015 19,525,015 5,648,381 29% 19,525,015 5,648,381 29%

2010 18,852,256 18,863,846 5,497,133 29% 18,863,846 5,497,133 29%

2011 17,994,833 18,680,473 5,164,512 28% 18,680,473 5,164,512 28%

2012 17,165,043 18,888,271 7,362,693 39% 18,888,271 7,362,693 39%

2013 16,334,361 19,040,749 7,098,048 37% 19,040,749 7,098,048 37%

2014 14,720,896 17,816,151 8,499,483 48% 17,816,151 8,499,483 48%

2015 13,104,880 17,167,852 8,795,108 51% 17,167,852 8,795,108 51%

2016 12,266,557 17,532,061 11,078,063 63% 17,532,061 11,078,063 63%

2017 11,342,680 17,436,999 13,025,017 75% 17,436,999 13,025,017 75%

2018 10,317,433 17,902,814 13,719,542 77% 17,985,386 13,712,676 76%

2019 9,779,515 18,128,584 15,588,319 86% 22,484,037 15,163,986 67%

2020 9,330,091 17,296,326 17,668,797 102% 28,797,604 16,195,779 56%

2021 8,880,583 16,463,873 19,970,310 121% 30,041,775 17,793,589 59%

2022 8,418,231 15,607,538 22,491,031 144% 28,606,839 19,984,907 70%

2023 7,941,728 14,724,887 25,182,952 171% 27,113,487 22,317,587 82%

2024 7,452,420 13,818,401 28,020,008 203% 25,564,346 24,768,723 97%

2025 6,954,852 12,896,497 30,991,581 240% 23,972,240 27,328,554 114%

2026 6,458,622 11,976,959 34,028,041 284% 22,368,392 29,935,849 134%

2027 5,970,665 11,072,653 37,074,250 335% 20,776,533 32,541,553 157%

2028 5,493,911 10,189,014 40,128,262 394% 19,207,122 35,144,789 183%

2029 5,029,386 9,327,955 43,171,892 463% 17,664,391 37,731,812 214%

2030 4,578,263 8,491,654 46,135,742 543% 16,153,131 40,243,383 249%

2031 4,143,464 7,685,542 48,924,968 637% 14,684,295 42,597,664 290%

2032 3,729,036 6,917,134 51,494,260 744% 13,272,840 44,756,402 337%

2033 3,337,831 6,191,724 53,793,664 869% 11,929,801 46,679,330 391%

2034 2,970,517 5,510,562 55,784,948 1012% 10,658,832 48,336,831 453%

2035 2,626,646 4,872,828 57,386,154 1178% 9,459,998 49,660,333 525%

2036 2,306,517 4,279,083 58,495,053 1367% 8,335,960 50,562,655 607%

2037 2,011,670 3,732,194 59,096,839 1583% 7,293,760 51,031,914 700%

2038 1,743,224 3,234,246 59,148,326 1829% 6,338,910 51,031,789 805%

2039 1,500,697 2,784,351 58,647,699 2106% 5,471,221 50,561,131 924%

2040 1,282,588 2,379,732 57,527,531 2417% 4,686,852 49,562,466 1057%

2041 1,087,346 2,017,517 55,774,383 2765% 3,981,539 48,024,069 1206%

2042 914,269 1,696,411 53,446,783 3151% 3,353,842 45,995,934 1371%

2043 762,925 1,415,616 50,689,864 3581% 2,803,081 43,602,807 1556%

2044 632,079 1,172,845 47,651,701 4063% 2,325,511 40,971,587 1762%

2045 519,803 964,522 44,352,064 4598% 1,914,678 38,119,433 1991%

2046 423,835 786,453 40,810,113 5189% 1,562,694 35,062,273 2244%

2047 342,385 635,320 37,088,758 5838% 1,263,306 31,853,715 2521%

2048 274,230 508,853 33,287,717 6542% 1,012,350 28,579,594 2823%

2049 218,055 404,616 29,588,415 7313% 805,255 25,395,138 3154%

2050 172,288 319,691 26,064,864 8153% 636,391 22,363,717 3514%

2051 135,129 250,739 22,762,943 9078% 499,179 19,524,260 3911%

2052 105,038 194,901 19,628,866 10071% 387,976 16,830,993 4338%

2053 80,952 150,207 16,660,290 11092% 298,925 14,281,971 4778%

2054 61,974 114,992 13,962,771 12142% 228,753 11,967,167 5231%

2055 47,207 87,591 11,563,283 13202% 174,180 9,908,972 5689%

2056 35,766 66,361 9,501,310 14318% 131,914 8,140,648 6171%

2057 26,920 49,947 7,697,371 15411% 99,234 6,594,338 6645%

2058 20,140 37,367 6,136,446 16422% 74,186 5,256,979 7086%

2059 15,012 27,852 4,840,762 17380% 55,250 4,147,200 7506%

2060 11,167 20,718 3,797,575 18330% 41,066 3,253,652 7923%

2061 8,283 15,366 2,977,421 19376% 30,437 2,550,911 8381%

2062 6,113 11,341 2,317,615 20435% 22,447 1,985,522 8846%

2063 4,487 8,324 1,783,436 21425% 16,460 1,527,908 9283%

2064 3,279 6,083 1,356,878 22304% 12,018 1,162,607 9674%

2065 2,388 4,430 1,019,125 23004% 8,745 873,431 9987%

2066 1,733 3,215 755,665 23501% 6,343 647,809 10213%

2067 1,249 2,317 552,354 23837% 4,567 473,666 10372%

CURRENT RATES AFTER RATE INCREASE

Exhibit 3Physicians Mutual Insurance CompanyActuarial Justification of Long-Term Care Premium Rates

Lifetime Loss Ratio Projection

P103, P104, P106, P107 (excluding Florida) - Totalas of 12/31/2017

Page 149: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Discount Rate = 4.50% Cumulative Rate Increase % = 84.05% Rate Increase Request = 0.00%

Implementation Date = 11/1/2018

Original Earned Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

Accumulated Past 66,155,427$ 70,269,721$ 28,514,329$ 40.6% 70,269,721$ 28,514,329$ 40.6%

Discounted Future 10,182,090$ 18,570,943$ 30,410,214$ 163.8% 18,570,943$ 30,410,214$ 163.8%

Lifetime (with interest) 76,337,518$ 88,840,664$ 58,924,543$ 66.3% 88,840,664$ 58,924,543$ 66.3%

Lifetime (no interest) 58,244,907$ 72,842,150$ 66,906,173$ 91.9% 72,842,150$ 66,906,173$ 91.9%

Calendar YearOriginal Earned

Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

1994 - - - N/A - - N/A

1995 - - - N/A - - N/A

1996 - - - N/A - - N/A

1997 - - - N/A - - N/A

1998 - - - N/A - - N/A

1999 - - - N/A - - N/A

2000 - - - N/A - - N/A

2001 3,605 3,605 - 0% 3,605 - 0%

2002 428,050 428,050 - 0% 428,050 - 0%

2003 2,005,627 2,005,627 276,097 14% 2,005,627 276,097 14%

2004 3,543,410 3,543,410 692,303 20% 3,543,410 692,303 20%

2005 4,213,530 4,213,530 1,008,017 24% 4,213,530 1,008,017 24%

2006 4,080,668 4,080,668 843,723 21% 4,080,668 843,723 21%

2007 3,902,981 3,902,981 1,020,189 26% 3,902,981 1,020,189 26%

2008 3,734,786 3,734,786 1,504,127 40% 3,734,786 1,504,127 40%

2009 3,592,360 3,592,360 1,386,719 39% 3,592,360 1,386,719 39%

2010 3,344,831 3,346,967 1,557,567 47% 3,346,967 1,557,567 47%

2011 2,978,621 3,093,011 1,818,282 59% 3,093,011 1,818,282 59%

2012 2,688,691 2,959,463 1,719,969 58% 2,959,463 1,719,969 58%

2013 2,514,375 2,931,735 1,857,801 63% 2,931,735 1,857,801 63%

2014 2,284,486 2,763,640 1,677,411 61% 2,763,640 1,677,411 61%

2015 2,101,069 2,750,927 1,794,571 65% 2,750,927 1,794,571 65%

2016 1,891,504 2,701,909 2,497,674 92% 2,701,909 2,497,674 92%

2017 1,739,760 2,674,152 1,954,688 73% 2,674,152 1,954,688 73%

2018 1,546,988 2,674,159 2,311,953 86% 2,674,159 2,311,953 86%

2019 1,421,883 2,616,993 2,416,393 92% 2,616,993 2,416,393 92%

2020 1,301,479 2,395,388 2,504,974 105% 2,395,388 2,504,974 105%

2021 1,183,388 2,178,040 2,576,450 118% 2,178,040 2,576,450 118%

2022 1,068,274 1,966,172 2,624,962 134% 1,966,172 2,624,962 134%

2023 956,595 1,760,626 2,646,891 150% 1,760,626 2,646,891 150%

2024 849,234 1,563,026 2,641,118 169% 1,563,026 2,641,118 169%

2025 747,672 1,376,099 2,608,188 190% 1,376,099 2,608,188 190%

2026 653,537 1,202,844 2,545,979 212% 1,202,844 2,545,979 212%

2027 567,454 1,044,406 2,452,826 235% 1,044,406 2,452,826 235%

2028 489,401 900,748 2,331,966 259% 900,748 2,331,966 259%

2029 419,037 771,243 2,192,415 284% 771,243 2,192,415 284%

2030 355,986 655,196 2,036,297 311% 655,196 2,036,297 311%

2031 299,989 552,134 1,864,751 338% 552,134 1,864,751 338%

2032 250,855 461,701 1,681,779 364% 461,701 1,681,779 364%

2033 208,254 383,295 1,493,648 390% 383,295 1,493,648 390%

2034 171,657 315,938 1,311,602 415% 315,938 1,311,602 415%

2035 140,428 258,460 1,140,760 441% 258,460 1,140,760 441%

2036 114,034 209,882 983,459 469% 209,882 983,459 469%

2037 91,994 169,317 841,153 497% 169,317 841,153 497%

2038 73,812 135,852 713,097 525% 135,852 713,097 525%

2039 58,938 108,475 599,842 553% 108,475 599,842 553%

2040 46,843 86,214 500,216 580% 86,214 500,216 580%

2041 37,083 68,251 413,947 607% 68,251 413,947 607%

2042 29,273 53,878 340,507 632% 53,878 340,507 632%

2043 23,083 42,484 278,816 656% 42,484 278,816 656%

2044 18,199 33,495 227,596 679% 33,495 227,596 679%

2045 14,363 26,434 184,986 700% 26,434 184,986 700%

2046 11,356 20,902 149,744 716% 20,902 149,744 716%

2047 9,011 16,585 121,174 731% 16,585 121,174 731%

2048 7,179 13,213 98,479 745% 13,213 98,479 745%

2049 5,746 10,575 80,475 761% 10,575 80,475 761%

2050 4,620 8,503 66,188 778% 8,503 66,188 778%

2051 3,733 6,870 54,796 798% 6,870 54,796 798%

2052 3,026 5,570 45,508 817% 5,570 45,508 817%

2053 2,458 4,523 38,025 841% 4,523 38,025 841%

2054 1,998 3,677 31,913 868% 3,677 31,913 868%

2055 1,623 2,988 26,919 901% 2,988 26,919 901%

2056 1,318 2,426 22,913 944% 2,426 22,913 944%

2057 1,068 1,965 19,325 984% 1,965 19,325 984%

2058 861 1,584 16,183 1022% 1,584 16,183 1022%

2059 689 1,269 13,440 1059% 1,269 13,440 1059%

2060 548 1,008 11,061 1097% 1,008 11,061 1097%

2061 432 795 9,062 1140% 795 9,062 1140%

2062 338 622 7,257 1167% 622 7,257 1167%

2063 262 482 5,705 1184% 482 5,705 1184%

2064 201 370 4,427 1196% 370 4,427 1196%

2065 153 281 3,388 1205% 281 3,388 1205%

2066 115 212 2,564 1212% 212 2,564 1212%

2067 86 158 1,915 1213% 158 1,915 1213%

CURRENT RATES AFTER RATE INCREASE

Exhibit 3Physicians Mutual Insurance CompanyActuarial Justification of Long-Term Care Premium Rates

Lifetime Loss Ratio Projection

P103, P104, P106, P107 (excluding Florida) - Limited Benefit Periods - No Automatic Inflationas of 12/31/2017

Page 150: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Discount Rate = 4.50% Cumulative Rate Increase % = 85.60% Rate Increase Request = 9.00%

Implementation Date = 11/1/2018

Original Earned Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

Accumulated Past 32,546,561$ 34,690,393$ 16,082,252$ 46.4% 34,690,393$ 16,082,252$ 46.4%

Discounted Future 6,714,441$ 12,356,505$ 26,688,613$ 216.0% 13,189,832$ 26,465,528$ 200.7%

Lifetime (with interest) 39,261,002$ 47,046,898$ 42,770,865$ 90.9% 47,880,225$ 42,547,780$ 88.9%

Lifetime (no interest) 31,363,037$ 40,968,842$ 56,113,002$ 137.0% 42,151,574$ 55,737,497$ 132.2%

Calendar YearOriginal Earned

Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

1994 - - - N/A - - N/A

1995 - - - N/A - - N/A

1996 - - - N/A - - N/A

1997 - - - N/A - - N/A

1998 - - - N/A - - N/A

1999 - - - N/A - - N/A

2000 - - - N/A - - N/A

2001 1,752 1,752 - 0% 1,752 - 0%

2002 234,842 234,842 - 0% 234,842 - 0%

2003 933,379 933,379 5,278 1% 933,379 5,278 1%

2004 1,699,381 1,699,381 298,227 18% 1,699,381 298,227 18%

2005 1,999,171 1,999,171 500,265 25% 1,999,171 500,265 25%

2006 1,963,308 1,963,308 380,164 19% 1,963,308 380,164 19%

2007 1,923,074 1,923,074 860,520 45% 1,923,074 860,520 45%

2008 1,865,620 1,865,620 421,552 23% 1,865,620 421,552 23%

2009 1,799,087 1,799,087 812,501 45% 1,799,087 812,501 45%

2010 1,671,379 1,672,388 931,924 56% 1,672,388 931,924 56%

2011 1,430,869 1,483,635 994,652 67% 1,483,635 994,652 67%

2012 1,302,975 1,432,086 1,708,127 119% 1,432,086 1,708,127 119%

2013 1,231,069 1,433,353 542,193 38% 1,433,353 542,193 38%

2014 1,152,056 1,396,839 1,019,809 73% 1,396,839 1,019,809 73%

2015 1,091,435 1,434,453 1,256,058 88% 1,434,453 1,256,058 88%

2016 1,024,764 1,469,390 1,021,024 69% 1,469,390 1,021,024 69%

2017 938,757 1,445,157 1,669,141 115% 1,445,157 1,669,141 115%

2018 856,543 1,482,023 1,404,071 95% 1,483,471 1,403,918 95%

2019 810,027 1,503,394 1,527,528 102% 1,578,336 1,519,015 96%

2020 765,014 1,419,851 1,651,858 116% 1,533,708 1,636,991 107%

2021 718,542 1,333,599 1,773,068 133% 1,440,541 1,757,111 122%

2022 670,699 1,244,804 1,886,328 152% 1,344,625 1,869,351 139%

2023 621,617 1,153,709 1,986,400 172% 1,246,225 1,968,522 158%

2024 571,718 1,061,096 2,073,096 195% 1,146,185 2,054,438 179%

2025 521,814 968,476 2,141,403 221% 1,046,138 2,122,130 203%

2026 472,927 877,744 2,184,027 249% 948,130 2,164,370 228%

2027 425,705 790,100 2,192,957 278% 853,458 2,173,221 255%

2028 380,477 706,157 2,170,979 307% 762,784 2,151,440 282%

2029 337,399 626,206 2,122,681 339% 676,421 2,103,576 311%

2030 296,692 550,653 2,049,194 372% 594,810 2,030,751 341%

2031 258,753 480,240 1,948,795 406% 518,751 1,931,256 372%

2032 224,043 415,820 1,825,900 439% 449,164 1,809,467 403%

2033 192,798 357,828 1,691,695 473% 386,523 1,676,469 434%

2034 164,973 306,187 1,556,062 508% 330,740 1,542,058 466%

2035 140,300 260,393 1,423,112 547% 281,274 1,410,304 501%

2036 118,548 220,022 1,292,147 587% 237,665 1,280,518 539%

2037 99,636 184,922 1,167,263 631% 199,750 1,156,758 579%

2038 83,460 154,900 1,051,723 679% 167,322 1,042,257 623%

2039 69,750 129,455 944,624 730% 139,836 936,122 669%

2040 58,086 107,807 845,538 784% 116,452 837,928 720%

2041 48,073 89,223 752,522 843% 96,377 745,749 774%

2042 39,495 73,303 663,686 905% 79,181 657,713 831%

2043 32,235 59,828 579,826 969% 64,626 574,608 889%

2044 26,158 48,549 501,727 1033% 52,442 497,211 948%

2045 21,095 39,151 431,346 1102% 42,291 427,464 1011%

2046 16,876 31,321 367,248 1173% 33,832 363,943 1076%

2047 13,373 24,820 308,281 1242% 26,811 305,506 1139%

2048 10,504 19,495 254,671 1306% 21,058 252,379 1198%

2049 8,188 15,197 207,746 1367% 16,416 205,876 1254%

2050 6,342 11,770 168,521 1432% 12,714 167,004 1314%

2051 4,867 9,033 134,860 1493% 9,757 133,646 1370%

2052 3,688 6,844 105,946 1548% 7,393 104,992 1420%

2053 2,757 5,117 81,598 1595% 5,528 80,863 1463%

2054 2,038 3,782 61,849 1635% 4,085 61,292 1500%

2055 1,486 2,758 46,425 1683% 2,979 46,007 1544%

2056 1,066 1,978 34,259 1732% 2,137 33,951 1589%

2057 751 1,395 24,778 1777% 1,506 24,555 1630%

2058 523 971 17,614 1814% 1,049 17,455 1664%

2059 362 672 12,419 1847% 726 12,307 1694%

2060 250 464 8,728 1880% 501 8,649 1725%

2061 170 316 6,066 1917% 342 6,011 1759%

2062 114 212 4,148 1954% 229 4,110 1793%

2063 75 140 2,771 1981% 151 2,746 1817%

2064 49 90 1,803 2000% 97 1,787 1835%

2065 31 57 1,144 2017% 61 1,134 1850%

2066 19 35 710 2021% 38 703 1854%

2067 12 22 430 1994% 23 426 1830%

CURRENT RATES AFTER RATE INCREASE

Exhibit 3Physicians Mutual Insurance CompanyActuarial Justification of Long-Term Care Premium Rates

Lifetime Loss Ratio Projection

P103, P104, P106, P107 (excluding Florida) - Lifetime Benefit Period - No Automatic Inflationas of 12/31/2017

Page 151: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Discount Rate = 4.50% Cumulative Rate Increase % = 85.60% Rate Increase Request = 122.01%

Implementation Date = 11/1/2018

Original Earned Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

Accumulated Past 124,200,673$ 134,813,402$ 27,096,463$ 20.1% 134,813,402$ 27,096,463$ 20.1%

Discounted Future 37,962,866$ 69,973,564$ 246,117,891$ 351.7% 123,812,035$ 217,274,154$ 175.5%

Lifetime (with interest) 162,163,539$ 204,786,966$ 273,214,355$ 133.4% 258,625,436$ 244,370,618$ 94.5%

Lifetime (no interest) 142,443,107$ 197,693,542$ 549,915,633$ 278.2% 279,182,788$ 486,816,979$ 174.4%

Calendar YearOriginal Earned

Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

1994 - - - N/A - - N/A

1995 - - - N/A - - N/A

1996 - - - N/A - - N/A

1997 - - - N/A - - N/A

1998 - - - N/A - - N/A

1999 - - - N/A - - N/A

2000 - - - N/A - - N/A

2001 3,018 3,018 - 0% 3,018 - 0%

2002 264,060 264,060 - 0% 264,060 - 0%

2003 1,147,855 1,147,855 11,177 1% 1,147,855 11,177 1%

2004 3,858,060 3,858,060 120,040 3% 3,858,060 120,040 3%

2005 7,064,817 7,064,817 92,686 1% 7,064,817 92,686 1%

2006 7,492,202 7,492,202 631,981 8% 7,492,202 631,981 8%

2007 7,324,389 7,324,389 213,841 3% 7,324,389 213,841 3%

2008 7,138,590 7,138,590 681,540 10% 7,138,590 681,540 10%

2009 6,963,146 6,963,146 1,471,478 21% 6,963,146 1,471,478 21%

2010 6,814,254 6,817,914 1,472,424 22% 6,817,914 1,472,424 22%

2011 6,627,044 6,881,618 736,430 11% 6,881,618 736,430 11%

2012 6,454,389 7,104,471 1,479,107 21% 7,104,471 1,479,107 21%

2013 6,246,019 7,283,625 2,014,660 28% 7,283,625 2,014,660 28%

2014 5,877,344 7,108,654 2,989,860 42% 7,108,654 2,989,860 42%

2015 5,409,634 7,077,177 2,791,219 39% 7,077,177 2,791,219 39%

2016 5,086,791 7,260,405 3,436,966 47% 7,260,405 3,436,966 47%

2017 4,666,223 7,166,390 4,392,699 61% 7,166,390 4,392,699 61%

2018 4,219,106 7,335,061 4,798,038 65% 7,369,862 4,795,507 65%

2019 4,021,671 7,464,137 5,553,766 74% 9,560,140 5,374,019 56%

2020 3,856,072 7,156,789 6,401,908 89% 12,683,358 5,786,987 46%

2021 3,686,995 6,842,986 7,345,787 107% 13,338,524 6,449,527 48%

2022 3,510,784 6,515,942 8,387,566 129% 12,701,040 7,364,199 58%

2023 3,326,944 6,174,739 9,503,432 154% 12,035,959 8,343,918 69%

2024 3,135,495 5,819,414 10,673,088 183% 11,343,350 9,370,865 83%

2025 2,937,789 5,452,476 11,892,348 218% 10,628,106 10,441,363 98%

2026 2,737,832 5,081,358 13,133,024 258% 9,904,714 11,530,664 116%

2027 2,539,094 4,712,506 14,364,734 305% 9,185,738 12,612,093 137%

2028 2,343,191 4,348,914 15,583,445 358% 8,477,015 13,682,109 161%

2029 2,150,883 3,991,994 16,776,971 420% 7,781,297 14,730,013 189%

2030 1,962,828 3,642,969 17,915,024 492% 7,100,968 15,729,212 222%

2031 1,780,236 3,304,081 18,951,676 574% 6,440,399 16,639,382 258%

2032 1,604,888 2,978,639 19,850,798 666% 5,806,040 17,428,802 300%

2033 1,438,276 2,669,411 20,595,731 772% 5,203,284 18,082,846 348%

2034 1,281,019 2,377,544 21,174,584 891% 4,634,370 18,591,073 401%

2035 1,133,242 2,103,273 21,570,749 1026% 4,099,755 18,938,902 462%

2036 995,265 1,847,192 21,757,290 1178% 3,600,593 19,102,683 531%

2037 867,841 1,610,696 21,729,278 1349% 3,139,609 19,078,089 608%

2038 751,534 1,394,831 21,483,827 1540% 2,718,841 18,862,585 694%

2039 646,277 1,199,476 21,035,012 1754% 2,338,049 18,468,530 790%

2040 551,596 1,023,750 20,379,314 1991% 1,995,520 17,892,834 897%

2041 466,998 866,739 19,516,017 2252% 1,689,469 17,134,868 1014%

2042 392,201 727,917 18,470,001 2537% 1,418,874 16,216,476 1143%

2043 326,933 606,781 17,301,002 2851% 1,182,753 15,190,106 1284%

2044 270,530 502,098 16,058,775 3198% 978,702 14,099,444 1441%

2045 222,091 412,197 14,756,777 3580% 803,464 12,956,302 1613%

2046 180,764 335,495 13,397,974 3993% 653,955 11,763,287 1799%

2047 145,853 270,701 12,001,278 4433% 527,657 10,537,002 1997%

2048 116,740 216,666 10,613,645 4899% 422,332 9,318,674 2206%

2049 92,720 172,086 9,284,289 5395% 335,435 8,151,513 2430%

2050 73,072 135,620 8,034,915 5925% 264,354 7,054,575 2669%

2051 57,128 106,029 6,881,665 6490% 206,675 6,042,033 2923%

2052 44,307 82,232 5,825,428 7084% 160,289 5,114,667 3191%

2053 34,108 63,304 4,869,956 7693% 123,393 4,275,772 3465%

2054 26,081 48,405 4,034,916 8336% 94,352 3,542,616 3755%

2055 19,813 36,773 3,307,938 8996% 71,679 2,904,336 4052%

2056 14,963 27,771 2,688,477 9681% 54,133 2,360,456 4361%

2057 11,244 20,868 2,165,129 10375% 40,676 1,900,962 4673%

2058 8,412 15,612 1,728,509 11072% 30,431 1,517,614 4987%

2059 6,269 11,636 1,373,873 11808% 22,680 1,206,247 5318%

2060 4,654 8,638 1,085,690 12569% 16,838 953,225 5661%

2061 3,443 6,391 851,061 13317% 12,457 747,223 5998%

2062 2,543 4,719 660,920 14006% 9,198 580,281 6309%

2063 1,874 3,478 510,640 14680% 6,780 448,337 6612%

2064 1,380 2,561 394,063 15390% 4,991 345,983 6932%

2065 1,013 1,880 303,771 16155% 3,665 266,708 7277%

2066 742 1,376 231,294 16803% 2,683 203,074 7569%

2067 540 1,002 174,129 17373% 1,954 152,884 7825%

CURRENT RATES AFTER RATE INCREASE

Exhibit 3Physicians Mutual Insurance CompanyActuarial Justification of Long-Term Care Premium Rates

Lifetime Loss Ratio Projection

P103, P104, P106, P107 (excluding Florida) - Limited Benefit Periods - With Automatic Inflationas of 12/31/2017

Page 152: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Discount Rate = 4.50% Cumulative Rate Increase % = 85.60% Rate Increase Request = 152.81%

Implementation Date = 11/1/2018

Original Earned Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

Accumulated Past 126,423,002$ 135,976,727$ 32,547,105$ 23.9% 135,976,727$ 32,547,105$ 23.9%

Discounted Future 35,633,201$ 65,698,289$ 370,662,877$ 564.2% 127,427,476$ 315,664,090$ 247.7%

Lifetime (with interest) 162,056,203$ 201,675,015$ 403,209,982$ 199.9% 263,404,203$ 348,211,194$ 132.2%

Lifetime (no interest) 140,769,069$ 193,246,689$ 891,128,333$ 461.1% 288,734,642$ 760,803,552$ 263.5%

Calendar YearOriginal Earned

Premium Earned Premium Incurred Claims Loss Ratio Earned Premium Incurred Claims Loss Ratio

1994 - - - N/A - - N/A

1995 - - - N/A - - N/A

1996 - - - N/A - - N/A

1997 - - - N/A - - N/A

1998 - - - N/A - - N/A

1999 - - - N/A - - N/A

2000 - - - N/A - - N/A

2001 7,046 7,046 - 0% 7,046 - 0%

2002 317,757 317,757 - 0% 317,757 - 0%

2003 1,389,618 1,389,618 3,886 0% 1,389,618 3,886 0%

2004 4,513,664 4,513,664 26,574 1% 4,513,664 26,574 1%

2005 7,641,212 7,641,212 99,505 1% 7,641,212 99,505 1%

2006 7,731,954 7,731,954 276,783 4% 7,731,954 276,783 4%

2007 7,578,081 7,578,081 1,329,489 18% 7,578,081 1,329,489 18%

2008 7,336,151 7,336,151 57,792 1% 7,336,151 57,792 1%

2009 7,170,422 7,170,422 1,977,683 28% 7,170,422 1,977,683 28%

2010 7,021,792 7,026,578 1,535,217 22% 7,026,578 1,535,217 22%

2011 6,958,299 7,222,210 1,615,147 22% 7,222,210 1,615,147 22%

2012 6,718,988 7,392,251 2,455,490 33% 7,392,251 2,455,490 33%

2013 6,342,898 7,392,035 2,683,394 36% 7,392,035 2,683,394 36%

2014 5,407,010 6,547,019 2,812,404 43% 6,547,019 2,812,404 43%

2015 4,502,742 5,905,294 2,953,260 50% 5,905,294 2,953,260 50%

2016 4,263,498 6,100,357 4,122,400 68% 6,100,357 4,122,400 68%

2017 3,997,940 6,151,301 5,008,489 81% 6,151,301 5,008,489 81%

2018 3,694,797 6,411,570 5,205,481 81% 6,457,894 5,201,298 81%

2019 3,525,934 6,544,060 6,090,632 93% 8,728,568 5,854,560 67%

2020 3,407,527 6,324,299 7,110,057 112% 12,185,150 6,266,827 51%

2021 3,291,657 6,109,248 8,275,005 135% 13,084,671 7,010,501 54%

2022 3,168,474 5,880,621 9,592,174 163% 12,595,002 8,126,394 65%

2023 3,036,571 5,635,813 11,046,229 196% 12,070,678 9,358,255 78%

2024 2,895,973 5,374,865 12,632,706 235% 11,511,785 10,702,302 93%

2025 2,747,577 5,099,446 14,349,642 281% 10,921,897 12,156,873 111%

2026 2,594,325 4,815,013 16,165,012 336% 10,312,704 13,694,837 133%

2027 2,438,411 4,525,640 18,063,733 399% 9,692,931 15,303,414 158%

2028 2,280,841 4,233,194 20,041,873 473% 9,066,575 16,979,274 187%

2029 2,122,067 3,938,512 22,079,826 561% 8,435,429 18,705,808 222%

2030 1,962,757 3,642,836 24,135,227 663% 7,802,157 20,447,123 262%

2031 1,804,485 3,349,087 26,159,745 781% 7,173,012 22,162,275 309%

2032 1,649,250 3,060,973 28,135,783 919% 6,555,935 23,836,354 364%

2033 1,498,503 2,781,190 30,012,590 1079% 5,956,700 25,426,366 427%

2034 1,352,867 2,510,893 31,742,700 1264% 5,377,784 26,892,098 500%

2035 1,212,676 2,250,701 33,251,534 1477% 4,820,509 28,170,367 584%

2036 1,078,669 2,001,988 34,462,157 1721% 4,287,820 29,195,995 681%

2037 952,198 1,767,260 35,359,144 2001% 3,785,084 29,955,914 791%

2038 834,418 1,548,662 35,899,679 2318% 3,316,895 30,413,849 917%

2039 725,733 1,346,945 36,068,222 2678% 2,884,861 30,556,637 1059%

2040 626,063 1,161,961 35,802,463 3081% 2,488,666 30,331,489 1219%

2041 535,192 993,305 35,091,898 3533% 2,127,442 29,729,505 1397%

2042 453,299 841,314 33,972,588 4038% 1,801,909 28,781,237 1597%

2043 380,674 706,523 32,530,220 4604% 1,513,218 27,559,277 1821%

2044 317,192 588,702 30,863,603 5243% 1,260,872 26,147,336 2074%

2045 262,255 486,739 28,978,955 5954% 1,042,489 24,550,681 2355%

2046 214,839 398,736 26,895,146 6745% 854,005 22,785,299 2668%

2047 174,147 323,214 24,658,025 7629% 692,254 20,890,032 3018%

2048 139,807 259,479 22,320,922 8602% 555,746 18,910,062 3403%

2049 111,401 206,757 20,015,905 9681% 442,829 16,957,275 3829%

2050 88,254 163,798 17,795,241 10864% 350,820 15,075,950 4297%

2051 69,401 128,807 15,691,622 12182% 275,877 13,293,785 4819%

2052 54,018 100,255 13,651,984 13617% 214,725 11,565,825 5386%

2053 41,629 77,263 11,670,712 15105% 165,480 9,887,311 5975%

2054 31,858 59,128 9,834,093 16632% 126,639 8,331,345 6579%

2055 24,285 45,072 8,182,002 18153% 96,534 6,931,710 7181%

2056 18,419 34,186 6,755,660 19762% 73,218 5,723,328 7817%

2057 13,858 25,720 5,488,139 21338% 55,087 4,649,496 8440%

2058 10,345 19,200 4,374,140 22782% 41,123 3,705,728 9011%

2059 7,691 14,275 3,441,030 24105% 30,574 2,915,206 9535%

2060 5,715 10,608 2,692,097 25379% 22,719 2,280,717 10039%

2061 4,237 7,864 2,111,232 26846% 16,843 1,788,615 10619%

2062 3,119 5,788 1,645,290 28424% 12,398 1,393,873 11243%

2063 2,276 4,224 1,264,320 29934% 9,046 1,071,119 11841%

2064 1,650 3,063 956,584 31235% 6,559 810,409 12355%

2065 1,192 2,212 710,822 32134% 4,738 602,201 12711%

2066 858 1,592 521,097 32726% 3,410 441,468 12945%

2067 612 1,135 375,880 33103% 2,432 318,441 13094%

CURRENT RATES AFTER RATE INCREASE

Exhibit 3Physicians Mutual Insurance CompanyActuarial Justification of Long-Term Care Premium Rates

Lifetime Loss Ratio Projection

P103, P104, P106, P107 (excluding Florida) - Lifetime Benefit Period - With Automatic Inflationas of 12/31/2017

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Physicians Mutual Insurance Company 2600 Dodge Street

Omaha, Nebraska 68131

Actuarial Rate Memorandum Long-Term Care Policies

June 12, 2018 Pennsylvania

1. Purpose of Filing This is a rate increase filing for individual Long-Term Care policy forms and riders. The purpose of this rate increase filing is to demonstrate the anticipated loss ratio of these forms after the recommended rate increase meets the requirements under Pennsylvania Insurance Regulations 31 s89 a.118. This rate increase filing is not intended to be used for any other purpose. 2. Scope of Filing The rate increase request is less than allowed under the Pennsylvania Administrative Rules and Regulations as illustrated in section 7. The rate increase request will apply to the Company’s Individual Comprehensive Long-Term Care policy form listed in section 3 and any related riders. The rate increase request varies by benefit period and if an automatic inflationary rider is attached to the base policy. The rate increase request is spread out over 1 or 2 years as illustrated in the table below.

Requested Rate Increase for Policy Forms P103, P104 

   Rate Inc. Request  Cumulative    by Year  Rate Inc. Request 

Limited BP, No Automatic Inflation  0%  0% 

Lifetime BP, No Automatic Inflation  9%  9% 

Limited BP, With Automatic Inflation  49%, 49%  122% 

Lifetime BP, With Automatic Inflation  59%, 59%  153%  Limited BP represents policyholders who have benefit periods of 2 to 5 years. Lifetime BP represents policyholders who have a lifetime benefit period. For policy forms P103 and P104, premium rates were originally filed for both the base policy as well as for all available riders. The rate increase request shown in the chart above is a requested increase on the total premium charged to customers in each of the listed benefit categories. In order to achieve the rate increase request for the “No Automatic Inflation” benefit categories, base premiums and all attached rider premiums excluding automatic inflationary rider premiums have to be increased by the “No Automatic Inflation” rate increase request percentages shown in the chart above.

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For policies in the “With Automatic Inflation” benefit categories, achieving the requested rate increase is more complicated. Policies in these benefit categories are rated as follows: The base policy and rider premiums (other than automatic inflationary rider premiums) have been increased by the amounts listed in the “No Automatic Inflation” rate increase request. Automatic inflationary rider premiums are then increased at amounts so that the aggregate of the base policy premium, any non-inflationary rider premiums, and the automatic inflationary rider premium equate to the “With Automatic Inflation” rate increase shown in the chart above. The ratio of automatic inflationary rider premium to total premium varies by policy depending on issue age, benefit options and purchased riders. As a result, when base premiums and all attached rider premiums excluding automatic inflationary rider premiums are given one rate increase and automatic inflationary rider premiums are given a different rate increase, the total increase in policy level premiums will vary. The requested rate increase in the above chart for “With Automatic Inflation” benefit categories represent the average increase in total premium for policies in those benefit categories (identified in bold below). The charts below summarize the rate increase taken on the automatic inflationary rider premiums and the resulting range of policy level total premium increases.

Requested Rate Increase for Policy Forms P103, P104 

   Rate Inc. Request  Cumulative    by Year  Rate Inc. Request 

Limited BP Automatic Inflationary Riders  119.6%, 81.2%  297.9% 

Lifetime BP Automatic Inflationary Riders  128.2%, 98.0%  351.8% 

Resulting Policy Level Total Premium Increase for Policies With Automatic Inflationary Riders 

   Total Premium  Cumulative 

   Increase By Year Premium Increase 

Limited BP, With Automatic Inflation – Average  49%, 49%  122% 

Limited BP, With Automatic Inflation – Minimum  21%, 26%  52% 

Limited BP, With Automatic Inflation – Maximum  58%, 55%  145% 

Lifetime BP, With Automatic Inflation – Average  59%, 59%  153% 

Lifetime BP, With Automatic Inflation – Minimum  40%, 42%  99% 

Lifetime BP, With Automatic Inflation – Maximum  66%, 65%  174%  On this rate increase request, Contingent Benefit Nonforfeiture (CBN) will be offered to all customers who lapse their policy within 120 days of receiving the rate increase except for those who own a Shortened Benefit Period Nonforfeiture Rider. Customers also have the option to make changes to their policy (such as reducing their benefit amount or benefit period, increasing their elimination period, or removing riders) which allows them the flexibility to set their benefits and premium appropriately given their situation.

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3. Description of Benefits Policy Form P103PA, issued in Pennsylvania from 2002 – 2004 Non-Tax Qualified Reimbursement Comprehensive Long-Term Care Policy Issue Ages 25-84 Policy form P103PA and related rider attachments Policy Form P104PA, issued in Pennsylvania from 2002 – 2004 Tax Qualified Reimbursement Comprehensive Long-Term Care Policy Issue Ages 25-84 Policy form P104PA and related rider attachments 4. Marketing Method The above policy forms and riders were offered through Physicians Mutual’s Agency force and were also available to and sold by brokers. All policy forms are no longer being marketed. 5. Underwriting Description These policy forms were fully underwritten with the use of various tools in addition to the application; tools which may have included medical records, an attending physician’s statement, telephone interview and/or face-to-face assessment. 6. Renewability These policy forms are guaranteed renewable. 7. Reason for Rate Increase Request A rate increase on this policy form and related rider attachments is necessary due to current information on combined lapse and mortality experience compared to the best industry information available at the time these products were priced. In addition, expected future morbidity assumptions utilize information based on the most comprehensive data available. Loss ratio for the purpose of this memorandum is defined as the ratio of Incurred Claims to Earned Premiums without the inclusion of Active Life Reserves, Waiver of Premium, or Return of Premium Riders. Past experience and future projections demonstrate anticipated lifetime loss ratios are in excess of 60%. The rate increases needed to meet the rate stability 58/85 loss ratio standards for Pennsylvania are shown below.

Required Rate Increase for Policy Forms P103, P104 

Limited BP, No Automatic Inflation  25% 

Lifetime BP, No Automatic Inflation  127% 

Limited BP, With Automatic Inflation  240% 

Lifetime BP, With Automatic Inflation  493% 

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8. In Force Policyholder Information The table below shows the number of in force policies and annualized premiums for both Pennsylvania and Nationwide (defined as all states where business is in force with the exception of Florida). Annualized premium equals modal premium payments multiplied by the number of payments per year. The Nationwide data and exhibits throughout this filing include state-specific policy form numbers that are substantially similar to the policy form in this memorandum. Experience for all like policy forms has been combined; i.e., state-specific forms P106 and P107 are included with forms P103 and P104. Florida P103 and P104 experience has been excluded due to having significantly different premium rates. Policies In Force for Policy Forms P103 and P104 as of December 31, 2017:   Pennsylvania  Nationwide 

Limited BP, No Automatic Inflation  20  1,563 

Lifetime BP, No Automatic Inflation  3  674 

Limited BP, With Automatic Inflation  47  3,442 

Lifetime BP, With Automatic Inflation  49  2,659 

P103, P104 Total  119  8,338  Annualized Premium In Force for Policy Forms P103 and P104 as of December 31, 2017:   Pennsylvania 

before increase 

Pennsylvania after 

increase 

Nationwide before increase 

Nationwide after 

increase 

Limited BP, No Automatic Inflation  $57,089  $57,089  $3,319,402  $3,319,402 

Lifetime BP, No Automatic Inflation  $24,718  $26,943  $1,873,496  $2,042,111 

Limited BP, With Automatic Inflation  $111,502  $247,547  $8,510,951  $18,895,162 

Lifetime BP, With Automatic Inflation  $207,071  $523,497  $7,556,347  $19,103,200 

P103, P104 Total  $400,380  $855,076  $21,260,196  $43,359,875  Average Annualized Premium per Policy for Policy Forms P103 and P104 as of December 31, 2017:   Pennsylvania 

before increase 

Pennsylvania after 

increase 

Nationwide before increase 

Nationwide after 

increase 

Limited BP, No Automatic Inflation  $2,854  $2,854  $2,124  $2,124 

Lifetime BP, No Automatic Inflation  $8,239  $8,981  $2,780  $3,030 

Limited BP, With Automatic Inflation  $2,372  $5,267  $2,473  $5,490 

Lifetime BP, With Automatic Inflation  $4,226  $10,684  $2,842  $7,184 

P103, P104 Total  $3,365  $7,186  $2,550  $5,200 

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The annualized premiums shown for “Pennsylvania before increase” are the annualized premiums we would expect to see after all previously approved rate increases have been implemented. Adjustments for rate increase approvals that have not yet been implemented on all policies have been made if applicable. The Nationwide premiums shown have been adjusted to assume the same level and timing as the Pennsylvania premiums. The attached Exhibit 1 shows both the Nationwide and Pennsylvania specific distribution of policies in force by issue age and various benefit options. 9. Premiums

Premiums are unisex, level and payable for life, with a 10-pay option offered. The premiums vary by issue age, initial benefit amount, benefit period, elimination period, benefit rider selection, eligible discounts, premium payment mode and underwriting class. Modal Payment factors for policy forms P103 and P104 are shown in the table below: Monthly Direct Bill  1.00 

Monthly Electronic Funds Transfer  1.00 

Quarterly  2.90 

Semi‐Annual  5.60 

Annual  11.00  Underwriting Class factors are shown in the following table: Preferred  0.85 

Standard  1.00 

Substandard   1.80  A 20% spouse discount was applied to the base policy and all riders. 10. Historical Experience Exhibit 2 shows calendar year Earned Premiums, Incurred Claims and Incurred Loss Ratios for Nationwide experience and for Pennsylvania experience. Incurred Claims are the sum of Paid Claims, Claim Reserve, and IBNR. Paid Claims and Claim Reserve are discounted at 4.50% to the date of incurral.

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A. Actual Compared to Pricing Termination Rates The original pricing mortality rates for policy forms P103 and P104 were the 1983 GAM table, weighted at 60% female. The table is shown below:

Age  Mortality  Age  Mortality  Age  Mortality 

65  1.0%  77  4.0%  89  12.3% 

66  1.2%  78  4.5%  90  13.4% 

67  1.3%  79  5.0%  91  14.5% 

68  1.5%  80  5.5%  92  15.8% 

69  1.6%  81  6.1%  93  17.1% 

70  1.8%  82  6.7%  94  18.6% 

71  2.1%  83  7.4%  95  20.3% 

72  2.3%  84  8.1%  96  22.0% 

73  2.6%  85  8.8%  97  23.9% 

74  2.9%  86  9.6%  98  25.9% 

75  3.2%  87  10.4%  99  28.1% 

76  3.6%  88  11.3%  100  30.5%  The voluntary lapse rates for policy forms P103 and P104 are shown below: For Level Pay:

Policy Year 

Ages 18‐59 

Ages 60‐74 

Ages 75+ 

1  11%  12%  12% 

2  8%  8%  9% 

3  7%  7%  8% 

4  6%  6%  7% 

5  5%  5%  6% 

6+  5%  5%  5% 

For 10-Pay:

Policy Year 

Ages 18‐59 

Ages 60‐64 

Ages 65‐69 

Ages 70‐74 

Ages 75‐79 

Ages 80+ 

1  4.0%  5.0%  6.0%  7.0%  9.0%  10.0% 

2  2.0%  3.0%  3.5%  3.5%  4.0%  5.0% 

3‐9  1.0%  1.5%  1.5%  1.5%  1.5%  1.5% 

10+  0.0%  0.0%  0.0%  0.0%  0.0%  0.0% 

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The following table shows actual total termination rates compared to pricing total termination rates through duration 20 for policy forms P103 and P104:

Total Termination 

Policy Year 

Actual  Pricing  A/P Policy Year 

Actual  Pricing  A/P 

1  8.7% 11.8% 74.1% 11  2.7% 6.3% 42.6%

2  13.3% 8.5% 157.4% 12  3.0% 6.5% 45.7%

3  3.9% 7.5% 52.3% 13  3.1% 6.6% 46.2%

4  3.1% 6.7% 46.7% 14  3.5% 6.8% 52.2%

5  2.6% 5.8% 45.5% 15     

6  2.9% 5.9% 50.2% 16     

7  3.4% 6.0% 56.4% 17     

8  3.0% 6.1% 49.6% 18       

9  2.9% 6.2% 47.6% 19       

10  3.1% 6.3% 49.7% 20       

B. Actual Compared to Current Best Estimate Mortality Rates Best estimate mortality rates were developed using the a2000 mortality table as the foundation. The slope of the table was increased slightly and 20-year selection factors (developed to fit company experience) were applied. The resulting mortality rates are used in the projections discussed in section 11.

Current Best Estimate Mortality Rates 

Age Female Mort. 

Male Mort. 

Age Female Mort. 

Male Mort. 

Age Female Mort. 

Male Mort. 

Age Female Mort. 

Male Mort. 

65  0.60%  0.93%  78  2.81%  4.21%  91  12.60%  13.62%  104  34.98%  37.50% 

66  0.68%  1.07%  79  3.16%  4.64%  92  13.98%  14.85%  105  38.21%  40.96% 

67  0.77%  1.24%  80  3.56%  5.11%  93  15.40%  16.14%  106  41.97%  44.90% 

68  0.87%  1.43%  81  4.00%  5.63%  94  16.86%  17.50%  107  46.31%  49.37% 

69  0.99%  1.64%  82  4.50%  6.18%  95  18.32%  18.93%  108  51.32%  54.41% 

70  1.12%  1.89%  83  5.06%  6.78%  96  19.78%  20.41%  109  57.04%  60.09% 

71  1.23%  2.11%  84  5.69%  7.43%  97  21.23%  21.96%  110  63.54%  66.43% 

72  1.37%  2.34%  85  6.39%  8.13%  98  22.72%  23.62%  111  70.89%  73.50% 

73  1.54%  2.59%  86  7.18%  8.89%  99  24.31%  25.44%  112  79.14%  81.34% 

74  1.73%  2.86%  87  8.07%  9.70%  100  26.08%  27.47%  113  88.37%  90.01% 

75  1.96%  3.15%  88  9.06%  10.56%  101  27.83%  29.51%  114  98.64%  99.54% 

76  2.21%  3.47%  89  10.13%  11.49%  102  29.85%  31.82%  115  100.00%  100.00% 

77  2.49%  3.82%  90  11.28%  12.46%  103  32.22%  34.47%  116  100.00%  100.00% 

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Current Best Estimate Mortality Selection Factors 

Policy Year 

Selection Factor 

Policy Year 

Selection Factor 

1  0.27   11  0.71  

2  0.44   12  0.72  

3  0.48   13  0.75  

4  0.52   14  0.77  

5  0.56   15  0.79  

6  0.60   16  0.82  

7  0.64   17  0.85  

8  0.68   18  0.88  

9  0.69   19  0.92  

10  0.70   20  0.96  

      21+  1.00  

To demonstrate the appropriateness of the current best estimate mortality rate assumptions, expected deaths since inception were calculated using the current best estimate mortality rate assumptions. Historical mortality experience was then compared to these revised expected amounts to demonstrate fit and appropriateness. The results of the analysis are shown in the table below:

Attained  Annual  Actual  Expected  Actual to Age  Exposure  Deaths  Deaths  Expected 

25‐64  139,861  266  259  103% 

65‐69  97,432  518  507  102% 

70‐74  96,919  1,024  1,022  100% 

75‐79  77,723  1,477  1,469  101% 

80‐84  49,697  1,724  1,695  102% 

85+  27,975  1,937  2,042  95% 

Total  489,607  6,946  6,996  99%  The exceptional fit of the actual mortality experience compared to the current best estimate mortality rate assumptions gives the assurance that the projections discussed in Section 11 are using best estimate mortality rates.

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C. Actual Compared to Current Best Estimate Non-Mortality Termination Rates Best estimate non-mortality termination rates were developed for policy forms P103 and P104 using company experience. These best estimate non-mortality termination rates are used in the projections discussed in section 11.

Current Best Estimate Non‐Mortality Termination Rates 

Policy Year 

Limited BP No Auto Inflation 

Lifetime BP No Auto Inflation 

Limited BP With Auto Inflation 

Lifetime BP With Auto Inflation 

1  14.00%  6.50%  6.00%  4.50% 

2  12.00%  6.00%  5.50%  4.00% 

3  6.00%  4.50%  3.75%  2.50% 

4  4.50%  3.25%  2.50%  2.00% 

5  4.00%  2.75%  2.00%  1.75% 

6  3.50%  2.00%  1.75%  1.50% 

7  3.50%  1.75%  1.50%  1.25% 

8  3.50%  1.50%  1.25%  1.00% 

9+  3.25%  1.40%  1.25%  0.90%  To demonstrate the appropriateness of the current best estimate non-mortality termination rate assumptions, expected non-mortality terminations since inception were calculated using the current best estimate non-mortality termination rate assumptions. Historical non-mortality termination experience was then compared to these revised expected amounts to demonstrate fit and appropriateness. The results of the analysis are shown in the table below:

Exposure  Actual to Expected 

Policy Year 

Limited BP No 

Auto Inf.  

Lifetime BP No 

Auto Inf.  

Limited BP With Auto Inf. 

Lifetime BP With Auto Inf. 

Limited BP No 

Auto Inf. 

Lifetime BP No 

Auto Inf. 

Limited BP With Auto Inf. 

Lifetime BP With Auto Inf. 

1  7,214  1,395  5,571  3,779  107%  109%  97%  75% 

2  6,123  1,294  5,240  3,649  213%  113%  98%  119% 

3  4,531  1,202  4,944  3,469  96%  110%  97%  113% 

4  4,239  1,137  4,748  3,364  98%  67%  92%  127% 

5  4,015  1,106  4,620  3,269  96%  99%  99%  98% 

6  3,818  1,069  4,506  3,196  92%  127%  98%  122% 

7  3,625  1,029  4,346  3,094  97%  100%  86%  111% 

8  3,390  992  4,241  3,010  62%  100%  69%  116% 

9+  15,129  4,688  18,460  12,574  81%  86%  77%  88% 

Total  52,084  13,912  56,676  39,404  122%  102%  92%  103%  The exceptional fit of the actual non-mortality termination experience compared to the current best estimate non-mortality termination rate assumptions gives the assurance that the projections discussed in Section 11 are using best estimate non-mortality termination rates.

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D. Actual Compared to Pricing Durational Loss Ratios The original pricing claim costs for policy forms P103 and P104 were derived primarily from the 1985 National Nursing Home Survey; the 1982-1984 National Long-Term Care Survey; experience of a consulting reinsurer, Duncanson and Holt; and the Wilkin’s Table (published by the Society of Actuaries). Physicians Mutual relied on actuarial consultants to provide the basis for the original pricing claim cost assumptions used in the pricing of these forms. Adjustments to these base claim costs were made by Physicians Mutual actuaries to fit the specific product designs and underwriting. The initial premium schedules were based on pricing assumptions believed to be appropriate given the best data available from industry experience available at the time the policy form was priced. Exhibit 2 Durational LR shows Earned Premiums, Incurred Claims, Incurred Loss Ratio, Pricing Loss Ratio, Actual to Pricing Ratios, Expected Loss Ratio and Actual to Expected Ratios separated by calendar year and issue year. The Pricing Loss Ratios shown in this exhibit are the original pricing loss ratios using the pricing mix of business. They are not reflective of the actual mix of business sold and as such, no conclusions should be taken from the resulting Actual to Pricing Ratios. More appropriate analysis can be taken from the Expected Loss Ratios and the resulting Actual to Expected Ratios, which are discussed more thoroughly in section E. E. Actual Compared to Current Best Estimate Durational Loss Ratios Analyzing Physicians Mutual’s nationwide claims experience by age, gender, benefit attribute, policy duration, etc., results in claim costs too low to achieve full credibility. As a result, the 2011 Milliman Long-Term Care Claim Cost Guidelines are used to provide more credible and comprehensive expectations of future claims. The claim costs were analyzed by actuaries at Physicians Mutual and were adjusted appropriately to account for benefit differentials. In addition, expected claims for past years were calculated using these adjusted claim costs and the actual mix of business. The Expected Loss Ratios and resulting Actual to Expected Ratios are seen in Exhibit 2 Durational LR. The Actual to Expected Ratios as well as the summarized chart below illustrate how well the adjusted 2011 Milliman Long-Term Care Claim Cost Guidelines match Physicians Mutual’s actual claims experience.

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For Policy Forms P103 and P104 

Calendar Year  Earned Premium  Act. Inc. Claims  Exp. Inc. Claims  Act. to Exp. 

2001‐2005  41,269,852  3,134,056  2,888,087  109%

2006  21,268,132  2,132,652  2,215,111  96%

2007  20,728,525  3,424,039  2,810,597  122%

2008  20,075,147  2,665,011  3,460,056  77%

2009  19,525,015  5,648,381  4,233,120  133%

2010  19,317,642  5,497,133  5,026,620  109%

2011  20,265,732  5,164,512  5,898,122  88%

2012  20,416,240  7,362,693  6,846,443  108%

2013  20,234,962  7,098,048  7,949,978  89%

2014  19,157,031  8,499,483  9,034,396  94%

2015  18,351,348  8,795,108  10,140,484  87%

2016  18,060,351  11,078,063  11,392,686  97%

2017  18,228,357  13,025,017  12,497,572  104%

Grand Total  276,898,333  83,524,198  84,393,273  99% The exceptional fit of the actual claims experience compared to the adjusted 2011 Milliman Long-Term Care Claim Cost Guidelines gives the assurance the projections discussed in Section 11 are using best estimate claim costs. F. Prior Claim Count Experience The following table shows the claim counts in calendar year 2017 for policy forms P103 and P104. Each open claim in the table below represents a policy for which a claim reserve was held as of December 31, 2017. Closed claims represent the count of policies for which the claim liability was released in 2017.

2017 

Closed  Open 

84  298  Analyzing these claims by age, gender, benefit attribute, policy duration, etc., results in claim costs too low to achieve full credibility. 11. Projected Experience and Lifetime Loss Ratios Nationwide historical and projected loss ratios, both before and after the rate increase, are shown in Exhibit 3. The historical data used in the projections are consistent with the data shown in Exhibit 2. The projections were produced using an asset share model and the assumptions described in Section 13. These assumptions were shown to be best estimates as demonstrated in Section 10. Below is a summary of projected lifetime loss ratios for policy forms P103 and P104:

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   Projected Lifetime  Projected Lifetime    Loss Ratio  Loss Ratio    w/out Rate Inc.  with Rate Inc. 

Limited BP, No Automatic Inflation  66.3%  66.3% 

Lifetime BP, No Automatic Inflation  90.9%  88.9% 

Limited BP, With Automatic Inflation  133.4%  94.5% 

Lifetime BP, With Automatic Inflation  199.9%  132.2% 

12. Rate Justification Standard – Minimum Loss Ratios

The following table demonstrates the compliance of the premium rate increase with the rate stability regulation. These values were derived from the table in Exhibit 3 and demonstrate that lifetime expected incurred claims meet the rate stability loss ratio standards of 58% overall plus 85% on the rate increased portion of the premium. Limited without Inflation

Lifetime without Inflation

PremiumTotal Earned

Premium (Original Rates)

Total Earned Premium

(After Increase)

Increase in Earned

PremiumAccumulated Past (P103, P104) 66,155,427 70,269,721 4,114,294 Discounted Future (P103, P104) 10,182,090 18,570,943 8,388,852

Total 76,337,518 12,503,146

Loss Ratio Standard 58% 85%

Premium x LR Standard 44,275,760 + 10,627,674 = 54,903,434

Total Incurred Claims Projected

Accumulated Past (P103, P104) 28,514,329 Discounted Future (P103, P104) 30,410,214 Projected Incurred Claims (must be higher than Premium x LR Standard) 58,924,543

Incurred Claims

PremiumTotal Earned

Premium (Original Rates)

Total Earned Premium

(After Increase)

Increase in Earned

PremiumAccumulated Past (P103, P104) 32,546,561 34,690,393 2,143,832 Discounted Future (P103, P104) 6,714,441 13,189,832 6,475,391

Total 39,261,002 8,619,223

Loss Ratio Standard 58% 85%

Premium x LR Standard 22,771,381 + 7,326,340 = 30,097,721

Total Incurred Claims Projected

Accumulated Past (P103, P104) 16,082,252 Discounted Future (P103, P104) 26,465,528 Projected Incurred Claims (must be higher than Premium x LR Standard) 42,547,780

Incurred Claims

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Limited with Inflation

Lifetime with Inflation

13. Actuarial Assumptions for Projected Lifetime Loss Ratio Calculations

A. Interest: a 4.50% annual rate of interest has been assumed for accumulating historical experience and for discounting projected future experience.

B. Mortality Rates: the a2000 mortality table was the foundation for establishing mortality rates. The slope of that table was increased slightly, and 20-year selection factors, developed to fit our experience, were also applied to produce the final mortality rates used to model future policy terminations due to death.

C. Non-mortality termination studies were performed using company experience. These studies were conducted so the resulting rates are consistent with both the manner in which lives are projected within the ALFA system and the proper exposure to which the claim costs should be applied. The chart below shows the total non-mortality termination rates that are used in the projection model for policy forms P103 and P104:

PremiumTotal Earned

Premium (Original Rates)

Total Earned Premium

(After Increase)

Increase in Earned

PremiumAccumulated Past (P103, P104) 124,200,673 134,813,402 10,612,729 Discounted Future (P103, P104) 37,962,866 123,812,035 85,849,168

Total 162,163,539 96,461,897

Loss Ratio Standard 58% 85%

Premium x LR Standard 94,054,853 + 81,992,613 = 176,047,465

Total Incurred Claims Projected

Accumulated Past (P103, P104) 27,096,463 Discounted Future (P103, P104) 217,274,154 Projected Incurred Claims (must be higher than Premium x LR Standard) 244,370,618

Incurred Claims

PremiumTotal Earned

Premium (Original Rates)

Total Earned Premium

(After Increase)

Increase in Earned

PremiumAccumulated Past (P103, P104) 126,423,002 135,976,727 9,553,725 Discounted Future (P103, P104) 35,633,201 127,427,476 91,794,275

Total 162,056,203 101,347,999

Loss Ratio Standard 58% 85%

Premium x LR Standard 93,992,598 + 86,145,799 = 180,138,397

Total Incurred Claims Projected

Accumulated Past (P103, P104) 32,547,105 Discounted Future (P103, P104) 315,664,090 Projected Incurred Claims (must be higher than Premium x LR Standard) 348,211,194

Incurred Claims

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Ultimate Lapse Rates 

Limited BP, No Automatic Inflation  3.25% 

Lifetime BP, No Automatic Inflation  1.40% 

Limited BP, With Automatic Inflation  1.25% 

Lifetime BP, With Automatic Inflation  0.90% 

D. Expected Claim Costs: The foundation for establishing the claim costs are the 2011 Milliman Long-Term Care Claim Cost Guidelines. As of the time the Guidelines were developed, they reflected the experience of 9 of the top 15 LTC companies (as measured by inforce lives). The claims experience underlying the Claim Cost Guidelines consists of nearly $8 billion of paid claims and over $10.5 billion of incurred claims.

The claim costs were analyzed by actuaries at Physicians Mutual and were adjusted as appropriate to account for benefit differentials. In addition, expected claims for past years were calculated using the Claim Cost Guidelines and historical actual experience was compared to these revised expected amounts to determine fit and appropriateness. Small adjustments were made when warranted, with the final results indicating actual past claims experience is within 1% of the amount expected by the application of the Claim Cost Guidelines.

E. Margins for Conservatism: Best estimate assumptions were used in the projections; no additional margins for conservatism have been included.

F. Additional Shock Lapses, Adverse Selection and Benefit Reductions: A small percentage of benefit reductions are expected and have been modeled. On average, 10% of our policyholders reduce their benefits or lapse their policy due to rate increases. The amount of downgraded benefits depends on the amount of the increase. For example, if we were to implement a 40% rate increase on a policy form, we would assume a shock lapse of 4%. (10% policyowners x 40% rate increase requested = 4% shock lapses)

G. Rate Increase History: There have been seven prior rate increases for policy forms P103 and P104. The first increase was 6%, the second increase was 6%, the third increase was 6%, the fourth increase was 9.1%, the fifth increase was 9.1%, the sixth increase was 9.1% and the seventh increase was 20% (19% to 20% based on benefit attribute). The effective date for each of these rate increases is shown in the following table. The effective dates represent the date after which each policy, upon its ensuing anniversary received the rate increase following a 60 day notification period. For purposes of this filing and justification of the current rate increase request in Pennsylvania, all Nationwide data in exhibit 3 has been adjusted to assume the same level and timing of past rate increases as previously approved in Pennsylvania.

First Increase – 6%  11/1/2010 

Second Increase – 6%  11/1/2011 

Third Increase – 6%  11/1/2012 

Fourth Increase – 9.1%  6/1/2014 

Fifth Increase – 9.1%  6/1/2015 

Sixth Increase – 9.1%  6/1/2016 

Seventh Increase – 20%  11/1/2017 

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No approved rate increase will be implemented for any policyowner until at least one year after any prior rate increase.

H. Effective Date Assumption: For the projections, the rate increase is expected to be

implemented 11/01/2018. This results in the rate increase being effective as follows for policy forms P103 and P104: Calendar Year 

Limited BP No Auto Inflation 

Lifetime BP No Auto Inflation 

Limited BP With Auto Inflation 

Lifetime BP With Auto Inflation 

2018  N/A  1%  0%  1% 

2019  N/A  62%  27%  25% 

2020  N/A  100%  79%  78% 

2021  N/A  100%  100%  100% 

2022  N/A  100%  100%  100% 

I. Expenses: No expenses have been included in this projection. J. Active Life Reserves: Active Life Reserves have not been used in this analysis.

K. Claim Reserves: Claim Reserves were calculated using appropriate actuarial methods for

IBNR and for open claims on a disabled life basis. The expected claim continuance curves were based on a combination of historical Company experience and Milliman continuance data. The valuation rates used to calculate the present value of future claim payments are the rates prescribed by the NAIC.

L. Trend Assumptions: There are no morbidity cost trends built into the projections.

M. Projected Lifetime Loss Ratio Calculation Methodology: Past actual Earned Premiums and Incurred Claims are accumulated with interest to year-end 2017, and projected Earned Premiums and Incurred Claims are discounted with interest back to year-end 2017. Calculations are shown both using a discount rate of 4.5% and a discount rate of 0%. The discounting methodology assumes both premiums and claims occur mid-year.

14. Premium Increase Application

The aggregate rate increase requested for policy forms P103 and P104 and related rider attachments included in this filing is 105%. This aggregate rate increase percentage was determined based on our nationwide mix of business. Premium Rate Schedules with the requested increase are shown in Exhibit 4. 15. Proposed Effective Date This rate increase will apply to policies on their policy anniversary date following a 60-day policyholder notification period. In no event will any policy receive this rate increase less than one year after receiving the most recent rate increase implemented in Pennsylvania.

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16. Certification I am a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries, and I meet the Academy’s qualification standards for preparing health rate filings. Further, the preparation of the data and assumptions included in this filing were completed by additional actuaries and non-actuaries of Physicians Mutual. Although I have not audited this information, I have reviewed it for reasonableness. To the extent that it is materially incomplete or inaccurate, the contents of this memorandum may be affected. I certify that, to the best of my knowledge and judgment, this entire rate filing is in compliance with applicable laws and that it complies with Actuarial Standard of Practice #8, and that the premiums charged are not excessive or unfairly discriminatory. This filing will enhance premium rate adequacy, however, it is not the full rate increase that can be actuarially justified. Future rate action may be necessary before benefits can be certified as reasonable in relation to premiums.

_______________________________

Mark Lehman, FSA, MAAA Assistant Vice President and Actuary

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Issue Percent Distribution Issue Percent Distribution

Age P103, P104, P106, P107 Age P103, P104, P106, P107

<50 11% <50 8%

50-54 18% 50-54 21%

55-59 24% 55-59 16%

60-64 26% 60-64 35%

65-69 15% 65-69 15%

70-74 5% 70-74 4%

75-79 1% 75-79 1%

80+ 0% 80+ 0%

Inflation Rider Percent Distribution Inflation Rider Percent Distribution

Option P103, P104, P106, P107 Option P103, P104, P106, P107

5% Inflation Option 74% 5% Inflation Option 63%

No Inflation 13% No Inflation 18%

Optional Compound Interest 13% Optional Compound Interest 19%

Benefit Percent Distribution Benefit Percent Distribution

Period P103, P104, P106, P107 Period P103, P104, P106, P107

2 Year 9% 2 Year 8%

3 Year 19% 3 Year 15%

4 Year 13% 4 Year 6%

5 Year 18% 5 Year 25%

Lifetime Benefit 41% Lifetime Benefit 47%

Elimination Percent Distribution Elimination Percent Distribution

Period P103, P104, P106, P107 Period P103, P104, P106, P107

0 days 1% 0 days 0%

30 days 4% 30 days 1%

60 days 5% 60 days 1%

90 days 83% 90 days 96%

180 days 5% 180 days 3%

365 days 1% 365 days 0%

Optional Benefit Percent Distribution Optional Benefit Percent Distribution

Riders P103, P104, P106, P107 Riders P103, P104, P106, P107

Joint Waiver of Premium 17% Joint Waiver of Premium 27%

Surviving Spouse Waiver of Premium 5% Surviving Spouse Waiver of Premium 8%

Security Rider 16% Security Rider 15%

Shortened Benefit Period Shortened Benefit Period

Nonforfeiture Rider Nonforfeiture Rider

Ten Pay 8% Ten Pay 3%

Nationwide Distribution of Business as of December 31, 2017 (Based on Policy Count) PA Distribution of Business as of December 31, 2017 (Based on Policy Count)

0% 0%

Exhibit 1 - Total Exhibit 1 - TotalPhysicians Mutual Insurance Company Physicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017 Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017

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Issue Percent Distribution Issue Percent Distribution

Age P103, P104, P106, P107 Age P103, P104, P106, P107

<50 4% <50 6%

50-54 5% 50-54 6%

55-59 11% 55-59 14%

60-64 33% 60-64 53%

65-69 27% 65-69 14%

70-74 15% 70-74 6%

75-79 5% 75-79 3%

80+ 1% 80+ 0%

Inflation Rider Percent Distribution Inflation Rider Percent Distribution

Option P103, P104, P106, P107 Option P103, P104, P106, P107

No Inflation 53% No Inflation 58%

Optional Compound Interest 47% Optional Compound Interest 42%

Benefit Percent Distribution Benefit Percent Distribution

Period P103, P104, P106, P107 Period P103, P104, P106, P107

2 Year 28% 2 Year 22%

3 Year 35% 3 Year 36%

4 Year 15% 4 Year 8%

5 Year 23% 5 Year 33%

Elimination Percent Distribution Elimination Percent Distribution

Period P103, P104, P106, P107 Period P103, P104, P106, P107

0 days 1% 0 days 0%

30 days 2% 30 days 0%

60 days 4% 60 days 0%

90 days 88% 90 days 100%

180 days 5% 180 days 0%

365 days 1% 365 days 0%

Optional Benefit Percent Distribution Optional Benefit Percent Distribution

Riders P103, P104, P106, P107 Riders P103, P104, P106, P107

Joint Waiver of Premium 6% Joint Waiver of Premium 19%

Surviving Spouse Waiver of Premium 1% Surviving Spouse Waiver of Premium 6%

Security Rider 12% Security Rider 0%

Shortened Benefit Period Shortened Benefit Period

Nonforfeiture Rider Nonforfeiture Rider

Ten Pay 0% Ten Pay 0%

Nationwide Distribution of Business as of December 31, 2017 (Based on Policy Count) PA Distribution of Business as of December 31, 2017 (Based on Policy Count)

0% 0%

Exhibit 1 - Limited Without Inflation Exhibit 1 - Limited Without InflationPhysicians Mutual Insurance Company Physicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017 Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017

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Issue Percent Distribution Issue Percent Distribution

Age P103, P104, P106, P107 Age P103, P104, P106, P107

<50 8% <50 0%

50-54 10% 50-54 9%

55-59 15% 55-59 14%

60-64 40% 60-64 36%

65-69 19% 65-69 18%

70-74 7% 70-74 18%

75-79 1% 75-79 5%

80+ 0% 80+ 0%

Inflation Rider Percent Distribution Inflation Rider Percent Distribution

Option P103, P104, P106, P107 Option P103, P104, P106, P107

No Inflation 47% No Inflation 32%

Optional Compound Interest 53% Optional Compound Interest 68%

Elimination Percent Distribution Elimination Percent Distribution

Period P103, P104, P106, P107 Period P103, P104, P106, P107

0 days 3% 0 days 0%

30 days 3% 30 days 0%

60 days 5% 60 days 5%

90 days 81% 90 days 91%

180 days 7% 180 days 5%

365 days 0% 365 days 0%

Optional Benefit Percent Distribution Optional Benefit Percent Distribution

Riders P103, P104, P106, P107 Riders P103, P104, P106, P107

Joint Waiver of Premium 7% Joint Waiver of Premium 14%

Surviving Spouse Waiver of Premium 2% Surviving Spouse Waiver of Premium 0%

Security Rider 10% Security Rider 14%

Shortened Benefit Period Shortened Benefit Period

Nonforfeiture Rider Nonforfeiture Rider

Ten Pay 2% Ten Pay 0%

Nationwide Distribution of Business as of December 31, 2017 (Based on Policy Count) PA Distribution of Business as of December 31, 2017 (Based on Policy Count)

0% 0%

Exhibit 1 - Lifetime Without Inflation Exhibit 1 - Lifetime Without InflationPhysicians Mutual Insurance Company Physicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017 Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017

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Issue Percent Distribution Issue Percent Distribution

Age P103, P104, P106, P107 Age P103, P104, P106, P107

<50 9% <50 8%

50-54 18% 50-54 17%

55-59 27% 55-59 21%

60-64 27% 60-64 35%

65-69 16% 65-69 19%

70-74 3% 70-74 0%

75-79 0% 75-79 0%

80+ 0% 80+ 0%

Inflation Rider Percent Distribution Inflation Rider Percent Distribution

Option P103, P104, P106, P107 Option P103, P104, P106, P107

5% Inflation Option 100% 5% Inflation Option 100%

Benefit Percent Distribution Benefit Percent Distribution

Period P103, P104, P106, P107 Period P103, P104, P106, P107

2 Year 10% 2 Year 10%

3 Year 31% 3 Year 21%

4 Year 25% 4 Year 13%

5 Year 34% 5 Year 56%

Elimination Percent Distribution Elimination Percent Distribution

Period P103, P104, P106, P107 Period P103, P104, P106, P107

0 days 1% 0 days 0%

30 days 5% 30 days 0%

60 days 6% 60 days 0%

90 days 84% 90 days 98%

180 days 5% 180 days 2%

365 days 0% 365 days 0%

Optional Benefit Percent Distribution Optional Benefit Percent Distribution

Riders P103, P104, P106, P107 Riders P103, P104, P106, P107

Joint Waiver of Premium 20% Joint Waiver of Premium 27%

Surviving Spouse Waiver of Premium 6% Surviving Spouse Waiver of Premium 10%

Security Rider 17% Security Rider 10%

Shortened Benefit Period Shortened Benefit Period

Nonforfeiture Rider Nonforfeiture Rider

Ten Pay 5% Ten Pay 0%

Nationwide Distribution of Business as of December 31, 2017 (Based on Policy Count) PA Distribution of Business as of December 31, 2017 (Based on Policy Count)

0% 0%

Exhibit 1 - Limited With Inflation Exhibit 1 - Limited With InflationPhysicians Mutual Insurance Company Physicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017 Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017

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Issue Percent Distribution Issue Percent Distribution

Age P103, P104, P106, P107 Age P103, P104, P106, P107

<50 19% <50 12%

50-54 26% 50-54 40%

55-59 29% 55-59 15%

60-64 18% 60-64 23%

65-69 7% 65-69 10%

70-74 1% 70-74 0%

75-79 0% 75-79 0%

80+ 0% 80+ 0%

Inflation Rider Percent Distribution Inflation Rider Percent Distribution

Option P103, P104, P106, P107 Option P103, P104, P106, P107

5% Inflation Option 100% 5% Inflation Option 100%

Elimination Percent Distribution Elimination Percent Distribution

Period P103, P104, P106, P107 Period P103, P104, P106, P107

0 days 1% 0 days 0%

30 days 5% 30 days 2%

60 days 6% 60 days 0%

90 days 81% 90 days 92%

180 days 5% 180 days 6%

365 days 1% 365 days 0%

Optional Benefit Percent Distribution Optional Benefit Percent Distribution

Riders P103, P104, P106, P107 Riders P103, P104, P106, P107

Joint Waiver of Premium 22% Joint Waiver of Premium 37%

Surviving Spouse Waiver of Premium 7% Surviving Spouse Waiver of Premium 10%

Security Rider 18% Security Rider 31%

Shortened Benefit Period Shortened Benefit Period

Nonforfeiture Rider Nonforfeiture Rider

Ten Pay 17% Ten Pay 10%

Nationwide Distribution of Business as of December 31, 2017 (Based on Policy Count) PA Distribution of Business as of December 31, 2017 (Based on Policy Count)

0% 0%

Exhibit 1 - Lifetime With Inflation Exhibit 1 - Lifetime With InflationPhysicians Mutual Insurance Company Physicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017 Actuarial Justification of Long-Term Care Premium Rates, December 31, 2017

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Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Total Policy Form(s): P103, P104, P106, P107 - Total

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Pricing Actual to Expected Actual to Calendar Issue Calendar Incurred Earned Loss Pricing Actual to Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Pricing Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Pricing Loss Ratio Expected

2001 2001 1 0 15,421 0.00% 10.62% 0.0000 5.67% 0.0000 2001 2001 1 0 0 0.00% 10.62% 0.0000 N/A 0.0000

Total 0 15,421 0.00% 10.62% 0.0000 5.67% 0.0000 Total 0 0 0.00% 0.00% 0.0000 N/A 0.0000

2002 2002 1 0 1,166,787 0.00% 10.62% 0.0000 5.27% 0.0000 2002 2002 1 0 20,176 0.00% 10.62% 0.0000 4.42% 0.0000

2001 2 0 77,921 0.00% 15.29% 0.0000 6.66% 0.0000 2001 2 0 0 0.00% 15.29% 0.0000 N/A 0.0000

Total 0 1,244,708 0.00% 10.91% 0.0000 5.36% 0.0000 Total 0 20,176 0.00% 10.62% 0.0000 4.42% 0.0000

2003 2003 1 66,352 2,715,778 2.44% 10.62% 0.2300 4.77% 0.5117 2003 2003 1 0 56,138 0.00% 10.62% 0.0000 4.44% 0.0000

2002 2 230,086 2,683,400 8.57% 15.29% 0.5608 7.45% 1.1515 2002 2 0 45,461 0.00% 15.29% 0.0000 7.09% 0.0000

2001 3 0 77,300 0.00% 21.90% 0.0000 11.66% 0.0000 2001 3 0 0 0.00% 21.90% 0.0000 N/A 0.0000

Total 296,438 5,476,478 5.41% 13.07% 0.4142 6.18% 0.8758 Total 0 101,599 0.00% 12.71% 0.0000 5.62% 0.0000

2004 2004 1 135,557 5,594,946 2.42% 10.62% 0.2281 3.87% 0.6254 2004 2004 1 352 111,963 0.31% 10.62% 0.0296 5.06% 0.0620

2003 2 746,665 5,499,864 13.58% 15.29% 0.8879 6.81% 1.9926 2003 2 0 150,838 0.00% 15.29% 0.0000 7.04% 0.0000

2002 3 254,923 2,445,656 10.42% 21.90% 0.4760 11.80% 0.8832 2002 3 0 38,379 0.00% 21.90% 0.0000 12.00% 0.0000

2001 4 0 74,049 0.00% 27.81% 0.0000 16.17% 0.0000 2001 4 0 0 0.00% 27.81% 0.0000 N/A 0.0000

Total 1,137,144 13,614,515 8.35% 14.63% 0.5710 6.55% 1.2747 Total 352 301,180 0.12% 14.40% 0.0081 6.94% 0.0168

2005 2005 1 0 2,547,883 0.00% 10.62% 0.0000 2.90% 0.0000 2005 2005 1 0 0 0.00% 10.62% 0.0000 0.00% 0.0000

2004 2 513,326 10,883,924 4.72% 15.29% 0.3084 5.47% 0.8622 2004 2 0 157,649 0.00% 15.29% 0.0000 7.88% 0.0000

2003 3 836,221 5,077,390 16.47% 21.90% 0.7520 10.72% 1.5365 2003 3 0 140,108 0.00% 21.90% 0.0000 11.68% 0.0000

2002 4 350,926 2,335,179 15.03% 27.81% 0.5404 15.44% 0.9732 2002 4 0 39,442 0.00% 27.81% 0.0000 14.61% 0.0000

2001 5 0 74,354 0.00% 35.86% 0.0000 21.19% 0.0000 2001 5 0 0 0.00% 35.86% 0.0000 N/A 0.0000

Total 1,700,473 20,918,731 8.13% 17.80% 0.4568 7.60% 1.0695 Total 0 337,199 0.00% 19.50% 0.0000 10.25% 0.0000

2006 2006 1 0 408,514 0.00% 10.62% 0.0000 2.77% 0.0000 2006 2006 1 0 0 0.00% 10.62% 0.0000 N/A 0.0000

2005 2 1,005 3,474,690 0.03% 15.29% 0.0019 5.05% 0.0057 2005 2 0 0 0.00% 15.29% 0.0000 N/A 0.0000

2004 3 922,914 10,184,895 9.06% 21.90% 0.4138 8.56% 1.0581 2004 3 0 137,586 0.00% 21.90% 0.0000 11.70% 0.0000

2003 4 1,090,078 4,870,047 22.38% 27.81% 0.8049 14.10% 1.5879 2003 4 0 135,346 0.00% 27.81% 0.0000 15.46% 0.0000

2002 5 118,655 2,256,524 5.26% 35.86% 0.1466 19.92% 0.2640 2002 5 0 30,395 0.00% 35.86% 0.0000 15.75% 0.0000

2001 6 0 73,462 0.00% 46.69% 0.0000 27.33% 0.0000 2001 6 0 0 0.00% 46.69% 0.0000 N/A 0.0000

Total 2,132,652 21,268,132 10.03% 23.52% 0.4263 10.42% 0.9628 Total 0 303,328 0.00% 25.93% 0.0000 13.78% 0.0000

2007 2006 2 0 588,565 0.00% 15.29% 0.0000 4.75% 0.0000 2007 2006 2 0 0 0.00% 15.29% 0.0000 N/A 0.0000

2005 3 2,218 3,285,966 0.07% 21.90% 0.0031 7.49% 0.0090 2005 3 0 0 0.00% 21.90% 0.0000 N/A 0.0000

2004 4 1,117,194 9,911,251 11.27% 27.81% 0.4054 11.36% 0.9919 2004 4 2,776 135,652 2.05% 27.81% 0.0736 15.64% 0.1309

2003 5 679,309 4,698,217 14.46% 35.86% 0.4032 18.00% 0.8031 2003 5 0 132,826 0.00% 35.86% 0.0000 20.32% 0.0000

2002 6 1,625,318 2,171,988 74.83% 46.69% 1.6027 24.83% 3.0140 2002 6 0 29,336 0.00% 46.69% 0.0000 19.60% 0.0000

2001 7 0 72,538 0.00% 54.28% 0.0000 34.73% 0.0000 2001 7 0 0 0.00% 54.28% 0.0000 N/A 0.0000

Total 3,424,039 20,728,525 16.52% 30.41% 0.5432 13.56% 1.2183 Total 2,776 297,815 0.93% 33.26% 0.0280 18.12% 0.0515

2008 2006 3 0 572,570 0.00% 21.90% 0.0000 7.02% 0.0000 2008 2006 3 0 0 0.00% 21.90% 0.0000 N/A 0.0000

2005 4 71,052 3,205,782 2.22% 27.81% 0.0797 9.88% 0.2243 2005 4 0 0 0.00% 27.81% 0.0000 N/A 0.0000

2004 5 1,202,552 9,613,928 12.51% 35.86% 0.3488 14.49% 0.8634 2004 5 0 134,564 0.00% 35.86% 0.0000 20.00% 0.0000

2003 6 727,997 4,542,173 16.03% 46.69% 0.3433 22.92% 0.6992 2003 6 0 132,979 0.00% 46.69% 0.0000 26.20% 0.0000

2002 7 663,410 2,070,185 32.05% 54.28% 0.5903 30.85% 1.0386 2002 7 324 28,203 1.15% 54.28% 0.0212 24.17% 0.0475

2001 8 0 70,509 0.00% 62.53% 0.0000 43.22% 0.0000 2001 8 0 0 0.00% 62.53% 0.0000 N/A 0.0000

Total 2,665,011 20,075,147 13.28% 38.62% 0.3437 17.24% 0.7702 Total 324 295,746 0.11% 42.49% 0.0026 23.18% 0.0047

2009 2006 4 40,304 549,824 7.33% 27.81% 0.2636 9.34% 0.7851 2009 2006 4 0 0 0.00% 27.81% 0.0000 N/A 0.0000

2005 5 1,077,285 3,121,934 34.51% 35.86% 0.9623 12.54% 2.7515 2005 5 0 0 0.00% 35.86% 0.0000 N/A 0.0000

2004 6 2,654,234 9,367,996 28.33% 46.69% 0.6068 18.23% 1.5539 2004 6 0 129,677 0.00% 46.69% 0.0000 24.52% 0.0000

2003 7 581,302 4,438,424 13.10% 54.28% 0.2413 29.00% 0.4517 2003 7 0 131,129 0.00% 54.28% 0.0000 33.96% 0.0000

2002 8 1,199,789 1,983,425 60.49% 62.53% 0.9674 38.53% 1.5699 2002 8 0 22,179 0.00% 62.53% 0.0000 29.55% 0.0000

2001 9 95,468 63,413 150.55% 71.66% 2.1010 48.72% 3.0900 2001 9 0 0 0.00% 71.66% 0.0000 N/A 0.0000

Total 5,648,381 19,525,015 28.93% 47.84% 0.6047 21.68% 1.3343 Total 0 282,985 0.00% 51.45% 0.0000 29.29% 0.0000

2010 2006 5 325 544,770 0.06% 35.86% 0.0017 10.91% 0.0055 2010 2006 5 0 0 0.00% 35.86% 0.0000 N/A 0.0000

2005 6 504,098 3,048,344 16.54% 46.69% 0.3542 15.43% 1.0721 2005 6 0 0 0.00% 46.69% 0.0000 N/A 0.0000

2004 7 1,426,106 9,323,811 15.30% 54.28% 0.2818 22.09% 0.6923 2004 7 29,664 128,864 23.02% 54.28% 0.4241 30.78% 0.7479

2003 8 1,482,008 4,393,840 33.73% 62.53% 0.5394 34.55% 0.9762 2003 8 0 118,422 0.00% 62.53% 0.0000 34.25% 0.0000

2002 9 2,084,596 1,958,388 106.44% 71.66% 1.4855 45.77% 2.3259 2002 9 0 22,551 0.00% 71.66% 0.0000 36.56% 0.0000

2001 10 0 48,488 0.00% 82.00% 0.0000 46.67% 0.0000 2001 10 0 0 0.00% 82.00% 0.0000 N/A 0.0000

Total 5,497,133 19,317,642 28.46% 56.27% 0.5057 26.02% 1.0936 Total 29,664 269,837 10.99% 59.35% 0.1852 32.79% 0.3353

2011 2006 6 0 562,227 0.00% 46.69% 0.0000 13.00% 0.0000 2011 2006 6 0 0 0.00% 46.69% 0.0000 N/A 0.0000

2005 7 128,289 3,192,269 4.02% 54.28% 0.0740 17.61% 0.2282 2005 7 0 0 0.00% 54.28% 0.0000 N/A 0.0000

2004 8 1,679,191 9,835,566 17.07% 62.53% 0.2730 24.98% 0.6835 2004 8 352,382 128,501 274.23% 62.53% 4.3854 36.49% 7.5142

2003 9 2,544,126 4,590,832 55.42% 71.66% 0.7734 38.22% 1.4498 2003 9 0 115,913 0.00% 71.66% 0.0000 38.03% 0.0000

2002 10 812,907 2,031,709 40.01% 82.00% 0.4879 50.43% 0.7934 2002 10 0 21,218 0.00% 82.00% 0.0000 42.54% 0.0000

2001 11 0 53,129 0.00% 98.44% 0.0000 50.54% 0.0000 2001 11 0 0 0.00% 98.44% 0.0000 N/A 0.0000

Total 5,164,512 20,265,732 25.48% 64.91% 0.3926 29.10% 0.8756 Total 352,382 265,632 132.66% 68.07% 1.9489 37.65% 3.5237

2012 2006 7 744,973 549,358 135.61% 54.28% 2.4981 16.55% 8.1929 2012 2006 7 0 0 0.00% 54.28% 0.0000 N/A 0.0000

2005 8 52,619 3,267,236 1.61% 62.53% 0.0258 20.77% 0.0775 2005 8 0 0 0.00% 62.53% 0.0000 N/A 0.0000

2004 9 3,038,704 9,969,998 30.48% 71.66% 0.4254 28.95% 1.0527 2004 9 0 123,338 0.00% 71.66% 0.0000 37.19% 0.0000

2003 10 1,301,924 4,624,195 28.15% 82.00% 0.3433 43.35% 0.6495 2003 10 0 118,061 0.00% 82.00% 0.0000 42.63% 0.0000

2002 11 1,400,971 1,961,013 71.44% 98.44% 0.7257 58.80% 1.2149 2002 11 0 20,549 0.00% 98.44% 0.0000 48.78% 0.0000

2001 12 823,503 44,440 1853.08% 109.81% 16.8751 73.93% 25.0637 2001 12 0 0 0.00% 109.81% 0.0000 N/A 0.0000

Total 7,362,693 20,416,240 36.06% 74.73% 0.4826 33.53% 1.0754 Total 0 261,949 0.00% 78.42% 0.0000 40.55% 0.0000

2013 2006 8 0 590,185 0.00% 62.53% 0.0000 18.64% 0.0000 2013 2006 8 0 0 0.00% 62.53% 0.0000 N/A 0.0000

2005 9 453,019 3,271,384 13.85% 71.66% 0.1933 24.99% 0.5541 2005 9 0 0 0.00% 71.66% 0.0000 N/A 0.0000

2004 10 3,401,708 10,042,853 33.87% 82.00% 0.4131 33.81% 1.0018 2004 10 225,130 130,356 172.70% 82.00% 2.1060 42.24% 4.0886

2003 11 2,612,796 4,470,186 58.45% 98.44% 0.5938 51.22% 1.1413 2003 11 0 121,379 0.00% 98.44% 0.0000 48.21% 0.0000

2002 12 630,525 1,815,918 34.72% 109.81% 0.3162 71.57% 0.4851 2002 12 0 21,146 0.00% 109.81% 0.0000 56.91% 0.0000

2001 13 0 44,437 0.00% 125.48% 0.0000 84.43% 0.0000 2001 13 0 0 0.00% 125.48% 0.0000 N/A 0.0000

Total 7,098,048 20,234,962 35.08% 85.98% 0.4080 39.29% 0.8928 Total 225,130 272,881 82.50% 91.47% 0.9020 46.03% 1.7922

Page 175: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Total Policy Form(s): P103, P104, P106, P107 - Total

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Pricing Actual to Expected Actual to Calendar Issue Calendar Incurred Earned Loss Pricing Actual to Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Pricing Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Pricing Loss Ratio Expected

2014 2006 9 333 634,418 0.05% 71.66% 0.0007 21.26% 0.0025 2014 2006 9 0 0 0.00% 71.66% 0.0000 N/A 0.0000

2005 10 1,026,526 3,270,091 31.39% 82.00% 0.3828 29.92% 1.0493 2005 10 0 0 0.00% 82.00% 0.0000 N/A 0.0000

2004 11 3,624,443 9,237,384 39.24% 98.44% 0.3986 41.96% 0.9351 2004 11 0 126,014 0.00% 98.44% 0.0000 48.57% 0.0000

2003 12 1,849,100 4,153,809 44.52% 109.81% 0.4054 62.12% 0.7166 2003 12 0 125,401 0.00% 109.81% 0.0000 55.24% 0.0000

2002 13 1,999,081 1,814,757 110.16% 125.48% 0.8779 78.23% 1.4080 2002 13 0 21,269 0.00% 125.48% 0.0000 68.23% 0.0000

2001 14 0 46,571 0.00% 140.71% 0.0000 96.57% 0.0000 2001 14 0 0 0.00% 140.71% 0.0000 N/A 0.0000

Total 8,499,483 19,157,031 44.37% 99.88% 0.4442 47.16% 0.9408 Total 0 272,683 0.00% 105.78% 0.0000 53.17% 0.0000

2015 2006 10 13,339 647,834 2.06% 82.00% 0.0251 24.13% 0.0853 2015 2006 10 0 0 0.00% 82.00% 0.0000 N/A 0.0000

2005 11 1,778,533 2,857,840 62.23% 98.44% 0.6322 39.90% 1.5596 2005 11 0 0 0.00% 98.44% 0.0000 N/A 0.0000

2004 12 4,046,888 8,542,712 47.37% 109.81% 0.4314 51.18% 0.9255 2004 12 226,176 133,394 169.55% 109.81% 1.5441 52.06% 3.2572

2003 13 1,957,327 4,379,840 44.69% 125.48% 0.3561 65.68% 0.6804 2003 13 0 133,111 0.00% 125.48% 0.0000 60.41% 0.0000

2002 14 999,022 1,872,318 53.36% 140.71% 0.3792 82.31% 0.6482 2002 14 0 20,635 0.00% 140.71% 0.0000 72.55% 0.0000

2001 15 0 50,805 0.00% 157.79% 0.0000 104.93% 0.0000 2001 15 0 0 0.00% 157.79% 0.0000 N/A 0.0000

Total 8,795,108 18,351,348 47.93% 114.08% 0.4201 55.26% 0.8673 Total 226,176 287,140 78.77% 119.30% 0.6603 57.40% 1.3723

2016 2006 11 0 619,359 0.00% 98.44% 0.0000 28.85% 0.0000 2016 2006 11 0 0 0.00% 98.44% 0.0000 N/A 0.0000

2005 12 1,700,077 2,697,172 63.03% 109.81% 0.5740 48.55% 1.2983 2005 12 0 0 0.00% 109.81% 0.0000 N/A 0.0000

2004 13 4,263,280 8,528,911 49.99% 125.48% 0.3984 58.11% 0.8602 2004 13 106,158 137,429 77.25% 125.48% 0.6156 58.59% 1.3184

2003 14 3,053,058 4,296,578 71.06% 140.71% 0.5050 73.99% 0.9604 2003 14 75,891 141,663 53.57% 140.71% 0.3807 65.73% 0.8150

2002 15 2,061,648 1,864,959 110.55% 157.79% 0.7006 91.53% 1.2077 2002 15 366 20,949 1.75% 157.79% 0.0111 73.29% 0.0238

2001 16 0 53,372 0.00% 175.50% 0.0000 116.53% 0.0000 2001 16 0 0 0.00% 175.50% 0.0000 N/A 0.0000

Total 11,078,063 18,060,351 61.34% 129.32% 0.4743 63.08% 0.9724 Total 182,415 300,041 60.80% 134.93% 0.4506 62.99% 0.9652

2017 2006 12 13,487 623,883 2.16% 109.81% 0.0197 33.65% 0.0642 2017 2006 12 0 0 0.00% 109.81% 0.0000 N/A 0.0000

2005 13 2,297,786 2,745,179 83.70% 125.48% 0.6670 55.24% 1.5154 2005 13 0 0 0.00% 125.48% 0.0000 N/A 0.0000

2004 14 5,454,156 8,575,429 63.60% 140.71% 0.4520 63.35% 1.0040 2004 14 95,770 137,231 69.79% 140.71% 0.4960 64.60% 1.0803

2003 15 3,127,564 4,345,124 71.98% 157.79% 0.4562 80.51% 0.8941 2003 15 106,747 150,230 71.06% 157.79% 0.4503 72.61% 0.9786

2002 16 2,127,791 1,882,251 113.05% 175.50% 0.6441 94.29% 1.1989 2002 16 1,186 22,711 5.22% 175.50% 0.0298 81.27% 0.0642

2001 17 4,233 56,491 7.49% 194.21% 0.0386 116.63% 0.0642 2001 17 0 0 0.00% 194.21% 0.0000 N/A 0.0000

Total 13,025,017 18,228,357 71.45% 145.19% 0.4921 68.56% 1.0422 Total 203,703 310,172 65.67% 151.53% 0.4334 69.70% 0.9422

GRAND TOTAL 83,524,198 276,898,333 30.16% 65.56% 0.4601 30.48% 0.9897 GRAND TOTAL 1,222,921 4,180,363 29.25% 68.77% 0.4254 34.56% 0.8466

Durational Totals Durational Totals

Calendar Incurred Earned Loss Pricing Actual to Expected Actual to Calendar Incurred Earned Loss Pricing Actual to Expected Actual to

Duration Claims Premiums Ratio Loss Ratio Pricing Loss Ratio Expected Duration Claims Premiums Ratio Loss Ratio Pricing Loss Ratio Expected

1 201,910 12,449,330 1.62% 10.62% 0.1527 3.97% 0.4087 1 352 188,277 0.19% 10.62% 0.0176 4.81% 0.0388

2 1,491,081 23,208,364 6.42% 15.29% 0.4202 5.94% 1.0817 2 0 353,948 0.00% 15.29% 0.0000 7.42% 0.0000

3 2,016,276 21,643,777 9.32% 21.90% 0.4254 9.24% 1.0079 3 0 316,072 0.00% 21.90% 0.0000 11.73% 0.0000

4 2,669,554 20,946,131 12.74% 27.81% 0.4583 12.19% 1.0455 4 2,776 310,441 0.89% 27.81% 0.0322 15.43% 0.0580

5 3,078,126 20,309,727 15.16% 35.86% 0.4226 15.53% 0.9757 5 0 297,786 0.00% 35.86% 0.0000 19.71% 0.0000

6 5,511,646 19,766,190 27.88% 46.69% 0.5972 19.49% 1.4309 6 0 291,992 0.00% 46.69% 0.0000 24.79% 0.0000

7 3,544,080 19,646,585 18.04% 54.28% 0.3323 23.74% 0.7599 7 29,988 288,195 10.41% 54.28% 0.1917 31.58% 0.3295

8 4,413,607 20,140,761 21.91% 62.53% 0.3504 27.60% 0.7941 8 352,382 269,102 130.95% 62.53% 2.0941 34.93% 3.7484

9 8,216,246 20,488,432 40.10% 71.66% 0.5597 31.83% 1.2600 9 0 261,803 0.00% 71.66% 0.0000 37.51% 0.0000

10 6,556,404 20,665,170 31.73% 82.00% 0.3869 36.69% 0.8647 10 225,130 269,636 83.49% 82.00% 1.0182 42.43% 1.9677

11 9,416,743 19,198,911 49.05% 98.44% 0.4983 45.13% 1.0868 11 0 267,942 0.00% 98.44% 0.0000 48.43% 0.0000

12 9,063,580 17,877,933 50.70% 109.81% 0.4617 54.84% 0.9244 12 226,176 279,941 80.79% 109.81% 0.7358 53.85% 1.5004

13 10,517,474 17,513,124 60.05% 125.48% 0.4786 61.71% 0.9732 13 106,158 291,809 36.38% 125.48% 0.2899 60.12% 0.6051

14 9,506,237 14,790,896 64.27% 140.71% 0.4568 68.95% 0.9322 14 171,661 299,529 57.31% 140.71% 0.4073 65.69% 0.8725

15 5,189,212 6,260,889 82.88% 157.79% 0.5253 83.99% 0.9868 15 107,113 171,179 62.57% 157.79% 0.3966 72.69% 0.8608

16 2,127,791 1,935,623 109.93% 175.50% 0.6264 94.90% 1.1583 16 1,186 22,711 5.22% 175.50% 0.0298 81.27% 0.0642

17 4,233 56,491 7.49% 194.21% 0.0386 116.63% 0.0642 17 0 0 0.00% 194.21% 0.0000 N/A 0.0000

TOTAL 83,524,198 276,898,333 30.16% 65.56% 0.4601 30.48% 0.9897 TOTAL 1,222,921 4,180,363 29.25% 68.77% 0.4254 34.56% 0.8466

Page 176: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Limited Benefit Periods, No Inflation Protection Policy Form(s): P103, P104, P106, P107 - Limited Benefit Periods, No Inflation Protection

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Expected Actual to Calendar Issue Calendar Incurred Earned Loss Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Expected

2001 2001 1 0 3,605 0.00% 6.49% 0.0000 2001 2001 1 0 0 0.00% N/A 0.0000

Total 0 3,605 0.00% 6.49% 0.0000 Total 0 0 0.00% N/A 0.0000

2002 2002 1 0 416,154 0.00% 7.02% 0.0000 2002 2002 1 0 8,142 0.00% 6.69% 0.0000

2001 2 0 11,896 0.00% 7.20% 0.0000 2001 2 0 0 0.00% N/A 0.0000

Total 0 428,050 0.00% 7.03% 0.0000 Total 0 8,142 0.00% 6.69% 0.0000

2003 2003 1 66,352 1,070,000 6.20% 5.97% 1.0386 2003 2003 1 0 8,436 0.00% 4.49% 0.0000

2002 2 209,745 924,851 22.68% 9.97% 2.2744 2002 2 0 20,727 0.00% 9.68% 0.0000

2001 3 0 10,775 0.00% 12.03% 0.0000 2001 3 0 0 0.00% N/A 0.0000

Total 276,097 2,005,627 13.77% 7.85% 1.7541 Total 0 29,163 0.00% 8.18% 0.0000

2004 2004 1 135,244 1,088,115 12.43% 6.81% 1.8242 2004 2004 1 352 24,952 1.41% 6.36% 0.2214

2003 2 401,684 1,645,598 24.41% 9.67% 2.5239 2003 2 0 20,850 0.00% 6.00% 0.0000

2002 3 155,375 802,336 19.37% 15.57% 1.2438 2002 3 0 15,095 0.00% 17.44% 0.0000

2001 4 0 7,361 0.00% 17.62% 0.0000 2001 4 0 0 0.00% N/A 0.0000

Total 692,303 3,543,410 19.54% 10.15% 1.9257 Total 352 60,897 0.58% 8.98% 0.0643

2005 2005 1 0 259,233 0.00% 5.59% 0.0000 2005 2005 1 0 0 0.00% 0.00% 0.0000

2004 2 54,598 1,829,564 2.98% 9.72% 0.3070 2004 2 0 31,089 0.00% 9.21% 0.0000

2003 3 608,747 1,371,530 44.38% 15.31% 2.8990 2003 3 0 18,053 0.00% 9.47% 0.0000

2002 4 344,672 745,615 46.23% 20.49% 2.2556 2002 4 0 18,438 0.00% 18.81% 0.0000

2001 5 0 7,588 0.00% 21.93% 0.0000 2001 5 0 0 0.00% N/A 0.0000

Total 1,008,017 4,213,530 23.92% 13.21% 1.8104 Total 0 67,580 0.00% 11.90% 0.0000

2006 2006 1 0 38,197 0.00% 9.00% 0.0000 2006 2006 1 0 0 0.00% N/A 0.0000

2005 2 352 349,915 0.10% 8.46% 0.0119 2005 2 0 0 0.00% N/A 0.0000

2004 3 369,394 1,708,299 21.62% 14.37% 1.5043 2004 3 0 20,114 0.00% 13.25% 0.0000

2003 4 444,181 1,263,510 35.15% 19.81% 1.7745 2003 4 0 18,054 0.00% 12.82% 0.0000

2002 5 29,796 713,109 4.18% 26.39% 0.1583 2002 5 0 12,084 0.00% 20.52% 0.0000

2001 6 0 7,638 0.00% 28.13% 0.0000 2001 6 0 0 0.00% N/A 0.0000

Total 843,723 4,080,668 20.68% 17.63% 1.1730 Total 0 50,252 0.00% 14.85% 0.0000

2007 2006 2 0 50,866 0.00% 13.34% 0.0000 2007 2006 2 0 0 0.00% N/A 0.0000

2005 3 0 316,967 0.00% 12.58% 0.0000 2005 3 0 0 0.00% N/A 0.0000

2004 4 318,098 1,640,500 19.39% 19.06% 1.0174 2004 4 2,776 18,809 14.76% 17.34% 0.8515

2003 5 196,230 1,197,951 16.38% 25.05% 0.6539 2003 5 0 18,054 0.00% 16.76% 0.0000

2002 6 505,861 689,040 73.42% 33.52% 2.1901 2002 6 0 11,037 0.00% 26.34% 0.0000

2001 7 0 7,657 0.00% 35.88% 0.0000 2001 7 0 0 0.00% N/A 0.0000

Total 1,020,189 3,902,981 26.14% 22.88% 1.1423 Total 2,776 47,901 5.80% 19.19% 0.3020

2008 2006 3 0 49,379 0.00% 18.33% 0.0000 2008 2006 3 0 0 0.00% N/A 0.0000

2005 4 68,722 311,514 22.06% 16.15% 1.3662 2005 4 0 0 0.00% N/A 0.0000

2004 5 482,746 1,554,976 31.05% 24.14% 1.2859 2004 5 0 18,236 0.00% 22.06% 0.0000

2003 6 479,591 1,154,079 41.56% 32.10% 1.2944 2003 6 0 18,054 0.00% 21.47% 0.0000

2002 7 473,068 657,181 71.98% 40.79% 1.7648 2002 7 324 9,999 3.24% 32.99% 0.0982

2001 8 0 7,657 0.00% 45.37% 0.0000 2001 8 0 0 0.00% N/A 0.0000

Total 1,504,127 3,734,786 40.27% 28.83% 1.3969 Total 324 46,290 0.70% 24.19% 0.0289

2009 2006 4 40,304 47,323 85.17% 23.84% 3.5720 2009 2006 4 0 0 0.00% N/A 0.0000

2005 5 93,328 286,325 32.60% 19.88% 1.6398 2005 5 0 0 0.00% N/A 0.0000

2004 6 165,355 1,503,620 11.00% 29.99% 0.3667 2004 6 0 17,794 0.00% 27.42% 0.0000

2003 7 578,767 1,121,468 51.61% 39.83% 1.2959 2003 7 0 18,054 0.00% 27.18% 0.0000

2002 8 413,816 626,817 66.02% 50.26% 1.3136 2002 8 0 6,313 0.00% 43.54% 0.0000

2001 9 95,149 6,808 1397.59% 63.93% 21.8628 2001 9 0 0 0.00% N/A 0.0000

Total 1,386,719 3,592,360 38.60% 35.77% 1.0790 Total 0 42,161 0.00% 29.73% 0.0000

2010 2006 5 0 42,698 0.00% 25.10% 0.0000 2010 2006 5 0 0 0.00% N/A 0.0000

2005 6 27,473 259,577 10.58% 24.11% 0.4389 2005 6 0 0 0.00% N/A 0.0000

2004 7 261,548 1,435,678 18.22% 36.71% 0.4962 2004 7 0 17,915 0.00% 34.05% 0.0000

2003 8 767,473 1,081,941 70.93% 46.55% 1.5238 2003 8 0 18,070 0.00% 34.27% 0.0000

2002 9 501,074 604,151 82.94% 58.96% 1.4066 2002 9 0 6,619 0.00% 51.41% 0.0000

2001 10 0 4,007 0.00% 81.55% 0.0000 2001 10 0 0 0.00% N/A 0.0000

Total 1,557,567 3,428,052 45.44% 42.69% 1.0642 Total 0 42,604 0.00% 36.84% 0.0000

2011 2006 6 0 42,490 0.00% 31.74% 0.0000 2011 2006 6 0 0 0.00% N/A 0.0000

2005 7 12,357 209,269 5.90% 31.36% 0.1883 2005 7 0 0 0.00% N/A 0.0000

2004 8 512,670 1,391,942 36.83% 42.22% 0.8724 2004 8 0 17,041 0.00% 42.37% 0.0000

2003 9 1,016,194 1,075,102 94.52% 51.69% 1.8287 2003 9 0 17,599 0.00% 42.37% 0.0000

2002 10 277,062 602,019 46.02% 64.08% 0.7182 2002 10 0 4,426 0.00% 66.40% 0.0000

2001 11 0 4,553 0.00% 56.48% 0.0000 2001 11 0 0 0.00% N/A 0.0000

Total 1,818,282 3,325,376 54.68% 48.44% 1.1288 Total 0 39,066 0.00% 45.09% 0.0000

2012 2006 7 0 40,720 0.00% 40.67% 0.0000 2012 2006 7 0 0 0.00% N/A 0.0000

2005 8 1,723 186,142 0.93% 38.91% 0.0238 2005 8 0 0 0.00% N/A 0.0000

2004 9 659,634 1,359,040 48.54% 47.96% 1.0120 2004 9 0 17,083 0.00% 50.50% 0.0000

2003 10 643,180 1,052,207 61.13% 56.99% 1.0725 2003 10 0 17,747 0.00% 49.83% 0.0000

2002 11 415,433 575,957 72.13% 69.97% 1.0308 2002 11 0 2,750 0.00% 94.13% 0.0000

2001 12 0 4,492 0.00% 70.92% 0.0000 2001 12 0 0 0.00% N/A 0.0000

Total 1,719,969 3,218,557 53.44% 54.27% 0.9847 Total 0 37,580 0.00% 53.37% 0.0000

2013 2006 8 0 43,598 0.00% 44.41% 0.0000 2013 2006 8 0 0 0.00% N/A 0.0000

2005 9 26,726 186,348 14.34% 45.10% 0.3180 2005 9 0 0 0.00% N/A 0.0000

2004 10 863,863 1,350,320 63.97% 54.25% 1.1792 2004 10 225,130 18,242 1234.15% 57.56% 21.4424

2003 11 526,064 1,033,658 50.89% 62.97% 0.8082 2003 11 0 18,800 0.00% 56.40% 0.0000

2002 12 441,149 551,709 79.96% 76.30% 1.0480 2002 12 0 2,906 0.00% 106.09% 0.0000

2001 13 0 5,008 0.00% 77.52% 0.0000 2001 13 0 0 0.00% N/A 0.0000

Total 1,857,801 3,170,642 58.59% 60.29% 0.9718 Total 225,130 39,948 563.56% 60.54% 9.3086

Page 177: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Limited Benefit Periods, No Inflation Protection Policy Form(s): P103, P104, P106, P107 - Limited Benefit Periods, No Inflation Protection

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Expected Actual to Calendar Issue Calendar Incurred Earned Loss Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Expected

2014 2006 9 0 45,762 0.00% 51.82% 0.0000 2014 2006 9 0 0 0.00% N/A 0.0000

2005 10 63,493 173,000 36.70% 53.21% 0.6898 2005 10 0 0 0.00% N/A 0.0000

2004 11 376,957 1,302,341 28.94% 59.74% 0.4845 2004 11 0 11,938 0.00% 64.97% 0.0000

2003 12 469,852 1,019,504 46.09% 68.33% 0.6745 2003 12 0 19,466 0.00% 64.59% 0.0000

2002 13 767,109 516,190 148.61% 80.87% 1.8376 2002 13 0 2,946 0.00% 123.77% 0.0000

2001 14 0 5,153 0.00% 88.38% 0.0000 2001 14 0 0 0.00% N/A 0.0000

Total 1,677,411 3,061,950 54.78% 65.72% 0.8335 Total 0 34,349 0.00% 69.80% 0.0000

2015 2006 10 0 39,366 0.00% 56.18% 0.0000 2015 2006 10 0 0 0.00% N/A 0.0000

2005 11 141,187 165,607 85.25% 61.17% 1.3938 2005 11 0 0 0.00% N/A 0.0000

2004 12 971,657 1,302,865 74.58% 61.81% 1.2065 2004 12 647 12,829 5.04% 51.79% 0.0974

2003 13 283,550 1,057,433 26.81% 69.86% 0.3838 2003 13 0 21,254 0.00% 69.88% 0.0000

2002 14 398,177 500,833 79.50% 81.08% 0.9806 2002 14 0 2,811 0.00% 128.45% 0.0000

2001 15 0 6,292 0.00% 84.23% 0.0000 2001 15 0 0 0.00% N/A 0.0000

Total 1,794,571 3,072,395 58.41% 67.66% 0.8633 Total 647 36,894 1.75% 68.05% 0.0258

2016 2006 11 0 38,357 0.00% 60.81% 0.0000 2016 2006 11 0 0 0.00% N/A 0.0000

2005 12 97,506 163,006 59.82% 68.05% 0.8790 2005 12 0 0 0.00% N/A 0.0000

2004 13 1,217,350 1,250,518 97.35% 67.32% 1.4461 2004 13 0 12,629 0.00% 65.24% 0.0000

2003 14 765,387 1,001,994 76.39% 76.77% 0.9950 2003 14 0 22,767 0.00% 76.41% 0.0000

2002 15 417,431 472,122 88.42% 88.72% 0.9965 2002 15 0 1,637 0.00% 85.94% 0.0000

2001 16 0 5,216 0.00% 106.57% 0.0000 2001 16 0 0 0.00% N/A 0.0000

Total 2,497,674 2,931,213 85.21% 74.02% 1.1511 Total 0 37,032 0.00% 73.02% 0.0000

2017 2006 12 1,721 36,980 4.65% 72.42% 0.0642 2017 2006 12 0 0 0.00% N/A 0.0000

2005 13 237,076 162,955 145.49% 78.14% 1.8618 2005 13 0 0 0.00% N/A 0.0000

2004 14 445,822 1,184,715 37.63% 75.10% 0.5011 2004 14 2,164 13,184 16.41% 62.17% 0.2640

2003 15 931,927 962,680 96.81% 84.39% 1.1472 2003 15 101,029 25,337 398.75% 79.26% 5.0307

2002 16 337,906 435,928 77.51% 95.74% 0.8096 2002 16 105 1,767 5.91% 92.04% 0.0642

2001 17 236 5,569 4.23% 65.88% 0.0642 2001 17 0 0 0.00% N/A 0.0000

Total 1,954,688 2,788,828 70.09% 81.66% 0.8583 Total 103,298 40,288 256.40% 74.23% 3.4541

GRAND TOTAL 21,609,140 50,502,031 42.79% 40.29% 1.0619 GRAND TOTAL 332,527 660,147 50.37% 36.42% 1.3832

Durational Totals Durational Totals

Calendar Incurred Earned Loss Expected Actual to Calendar Incurred Earned Loss Expected Actual to

Duration Claims Premiums Ratio Loss Ratio Expected Duration Claims Premiums Ratio Loss Ratio Expected

1 201,597 2,875,304 7.01% 6.45% 1.0873 1 352 41,530 0.85% 6.05% 0.1400

2 666,379 4,812,691 13.85% 9.69% 1.4286 2 0 72,666 0.00% 8.42% 0.0000

3 1,133,516 4,259,288 26.61% 14.81% 1.7973 3 0 53,262 0.00% 13.16% 0.0000

4 1,215,977 4,015,823 30.28% 19.39% 1.5616 4 2,776 55,302 5.02% 16.35% 0.3070

5 802,100 3,802,646 21.09% 24.54% 0.8597 5 0 48,374 0.00% 19.70% 0.0000

6 1,178,280 3,656,444 32.22% 30.92% 1.0421 6 0 46,886 0.00% 24.87% 0.0000

7 1,325,740 3,471,972 38.18% 38.21% 0.9993 7 324 45,969 0.70% 31.12% 0.0226

8 1,695,681 3,338,098 50.80% 44.98% 1.1293 8 0 41,424 0.00% 39.02% 0.0000

9 2,298,776 3,277,211 70.14% 51.14% 1.3717 9 0 41,301 0.00% 47.18% 0.0000

10 1,847,598 3,220,919 57.36% 56.98% 1.0066 10 225,130 40,415 557.05% 55.13% 10.1041

11 1,459,640 3,120,473 46.78% 62.78% 0.7450 11 0 33,488 0.00% 62.55% 0.0000

12 1,981,884 3,078,556 64.38% 67.04% 0.9603 12 647 35,201 1.84% 63.35% 0.0290

13 2,505,085 2,992,104 83.72% 71.16% 1.1765 13 0 36,829 0.00% 72.60% 0.0000

14 1,609,386 2,692,695 59.77% 76.86% 0.7776 14 2,164 38,761 5.58% 75.34% 0.0741

15 1,349,358 1,441,094 93.63% 85.81% 1.0912 15 101,029 26,973 374.55% 79.67% 4.7014

16 337,906 441,145 76.60% 95.87% 0.7990 16 105 1,767 5.91% 92.04% 0.0642

17 236 5,569 4.23% 65.88% 0.0642 17 0 0 0.00% N/A 0.0000

TOTAL 21,609,140 50,502,031 42.79% 40.29% 1.0619 TOTAL 332,527 660,147 50.37% 36.42% 1.3832

Page 178: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Lifetime Benefit Period, No Inflation Protection Policy Form(s): P103, P104, P106, P107 - Lifetime Benefit Period, No Inflation Protection

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Expected Actual to Calendar Issue Calendar Incurred Earned Loss Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Expected

2001 2001 1 0 1,752 0.00% 7.91% 0.0000 2001 2001 1 0 0 0.00% N/A 0.0000

Total 0 1,752 0.00% 7.91% 0.0000 Total 0 0 0.00% N/A 0.0000

2002 2002 1 0 223,721 0.00% 5.08% 0.0000 2002 2002 1 0 3,811 0.00% 3.02% 0.0000

2001 2 0 11,121 0.00% 8.20% 0.0000 2001 2 0 0 0.00% N/A 0.0000

Total 0 234,842 0.00% 5.23% 0.0000 Total 0 3,811 0.00% 3.02% 0.0000

2003 2003 1 0 405,617 0.00% 4.90% 0.0000 2003 2003 1 0 4,707 0.00% 6.27% 0.0000

2002 2 5,278 516,539 1.02% 6.97% 0.1466 2002 2 0 2,648 0.00% 3.42% 0.0000

2001 3 0 11,223 0.00% 13.81% 0.0000 2001 3 0 0 0.00% N/A 0.0000

Total 5,278 933,379 0.57% 6.15% 0.0919 Total 0 7,354 0.00% 5.25% 0.0000

2004 2004 1 0 539,687 0.00% 5.46% 0.0000 2004 2004 1 0 7,624 0.00% 10.11% 0.0000

2003 2 198,988 729,813 27.27% 7.75% 3.5182 2003 2 0 12,923 0.00% 9.19% 0.0000

2002 3 99,239 418,494 23.71% 11.69% 2.0280 2002 3 0 1,909 0.00% 5.87% 0.0000

2001 4 0 11,387 0.00% 19.79% 0.0000 2001 4 0 0 0.00% N/A 0.0000

Total 298,227 1,699,381 17.55% 8.07% 2.1736 Total 0 22,456 0.00% 9.22% 0.0000

2005 2005 1 0 81,848 0.00% 4.60% 0.0000 2005 2005 1 0 0 0.00% N/A 0.0000

2004 2 358,237 899,651 39.82% 8.33% 4.7774 2004 2 0 10,861 0.00% 15.86% 0.0000

2003 3 136,087 633,032 21.50% 12.51% 1.7186 2003 3 0 7,525 0.00% 24.56% 0.0000

2002 4 5,940 373,065 1.59% 16.20% 0.0983 2002 4 0 1,856 0.00% 8.30% 0.0000

2001 5 0 11,574 0.00% 26.06% 0.0000 2001 5 0 0 0.00% N/A 0.0000

Total 500,265 1,999,171 25.02% 11.07% 2.2597 Total 0 20,241 0.00% 18.40% 0.0000

2006 2006 1 0 27,219 0.00% 2.60% 0.0000 2006 2006 1 0 0 0.00% N/A 0.0000

2005 2 0 107,089 0.00% 8.09% 0.0000 2005 2 0 0 0.00% N/A 0.0000

2004 3 369,320 825,650 44.73% 13.21% 3.3853 2004 3 0 10,112 0.00% 24.35% 0.0000

2003 4 10,413 619,296 1.68% 16.67% 0.1009 2003 4 0 9,261 0.00% 26.62% 0.0000

2002 5 430 372,207 0.12% 20.84% 0.0055 2002 5 0 1,864 0.00% 10.48% 0.0000

2001 6 0 11,847 0.00% 33.80% 0.0000 2001 6 0 0 0.00% N/A 0.0000

Total 380,164 1,963,308 19.36% 15.45% 1.2536 Total 0 21,236 0.00% 24.12% 0.0000

2007 2006 2 0 39,894 0.00% 4.45% 0.0000 2007 2006 2 0 0 0.00% N/A 0.0000

2005 3 0 101,204 0.00% 10.99% 0.0000 2005 3 0 0 0.00% N/A 0.0000

2004 4 2,564 814,151 0.31% 17.49% 0.0180 2004 4 0 10,112 0.00% 32.53% 0.0000

2003 5 466,352 596,941 78.12% 22.00% 3.5511 2003 5 0 9,770 0.00% 33.60% 0.0000

2002 6 391,604 359,002 109.08% 26.23% 4.1587 2002 6 0 1,851 0.00% 12.92% 0.0000

2001 7 0 11,882 0.00% 44.30% 0.0000 2001 7 0 0 0.00% N/A 0.0000

Total 860,520 1,923,074 44.75% 20.08% 2.2288 Total 0 21,733 0.00% 31.34% 0.0000

2008 2006 3 0 37,525 0.00% 6.94% 0.0000 2008 2006 3 0 0 0.00% N/A 0.0000

2005 4 0 95,153 0.00% 13.02% 0.0000 2005 4 0 0 0.00% N/A 0.0000

2004 5 30,970 799,427 3.87% 22.27% 0.1739 2004 5 0 10,112 0.00% 42.20% 0.0000

2003 6 234,534 571,828 41.01% 28.06% 1.4618 2003 6 0 10,044 0.00% 43.15% 0.0000

2002 7 156,048 349,534 44.64% 32.45% 1.3756 2002 7 0 1,843 0.00% 15.68% 0.0000

2001 8 0 12,152 0.00% 56.60% 0.0000 2001 8 0 0 0.00% N/A 0.0000

Total 421,552 1,865,620 22.60% 25.40% 0.8897 Total 0 21,998 0.00% 40.42% 0.0000

2009 2006 4 0 38,957 0.00% 8.98% 0.0000 2009 2006 4 0 0 0.00% N/A 0.0000

2005 5 0 94,338 0.00% 16.33% 0.0000 2005 5 0 0 0.00% N/A 0.0000

2004 6 596,506 764,637 78.01% 28.05% 2.7815 2004 6 0 10,112 0.00% 55.11% 0.0000

2003 7 349 564,200 0.06% 35.84% 0.0017 2003 7 0 10,274 0.00% 54.83% 0.0000

2002 8 215,646 327,861 65.77% 41.22% 1.5957 2002 8 0 1,843 0.00% 18.99% 0.0000

2001 9 0 9,095 0.00% 57.77% 0.0000 2001 9 0 0 0.00% N/A 0.0000

Total 812,501 1,799,087 45.16% 32.01% 1.4107 Total 0 22,229 0.00% 51.99% 0.0000

2010 2006 5 0 38,242 0.00% 10.89% 0.0000 2010 2006 5 0 0 0.00% N/A 0.0000

2005 6 4,457 83,645 5.33% 21.13% 0.2522 2005 6 0 0 0.00% N/A 0.0000

2004 7 32,398 702,662 4.61% 34.64% 0.1331 2004 7 29,664 9,339 317.63% 71.37% 4.4505

2003 8 316,077 549,781 57.49% 44.33% 1.2970 2003 8 0 10,274 0.00% 68.74% 0.0000

2002 9 578,992 329,368 175.79% 48.39% 3.6331 2002 9 0 1,843 0.00% 22.81% 0.0000

2001 10 0 6,850 0.00% 72.51% 0.0000 2001 10 0 0 0.00% N/A 0.0000

Total 931,924 1,710,547 54.48% 39.36% 1.3842 Total 29,664 21,456 138.25% 65.94% 2.0967

2011 2006 6 0 28,770 0.00% 14.33% 0.0000 2011 2006 6 0 0 0.00% N/A 0.0000

2005 7 0 58,520 0.00% 27.68% 0.0000 2005 7 0 0 0.00% N/A 0.0000

2004 8 89,207 634,329 14.06% 41.55% 0.3384 2004 8 0 5,762 0.00% 105.68% 0.0000

2003 9 436,243 532,657 81.90% 51.33% 1.5956 2003 9 0 9,643 0.00% 80.27% 0.0000

2002 10 469,202 326,513 143.70% 54.59% 2.6325 2002 10 0 1,916 0.00% 27.15% 0.0000

2001 11 0 8,119 0.00% 78.37% 0.0000 2001 11 0 0 0.00% N/A 0.0000

Total 994,652 1,588,907 62.60% 46.69% 1.3407 Total 0 17,322 0.00% 82.85% 0.0000

2012 2006 7 744,973 20,078 3710.33% 23.75% 156.2219 2012 2006 7 0 0 0.00% N/A 0.0000

2005 8 0 57,423 0.00% 34.66% 0.0000 2005 8 0 0 0.00% N/A 0.0000

2004 9 521,721 608,086 85.80% 47.12% 1.8207 2004 9 0 6,108 0.00% 122.70% 0.0000

2003 10 33,557 527,597 6.36% 57.57% 0.1105 2003 10 0 7,298 0.00% 86.17% 0.0000

2002 11 407,876 330,766 123.31% 63.04% 1.9562 2002 11 0 2,032 0.00% 31.27% 0.0000

2001 12 0 8,658 0.00% 92.56% 0.0000 2001 12 0 0 0.00% N/A 0.0000

Total 1,708,127 1,552,609 110.02% 53.55% 2.0543 Total 0 15,438 0.00% 93.40% 0.0000

2013 2006 8 0 18,908 0.00% 23.73% 0.0000 2013 2006 8 0 0 0.00% N/A 0.0000

2005 9 0 53,030 0.00% 42.69% 0.0000 2005 9 0 0 0.00% N/A 0.0000

2004 10 63,602 601,632 10.57% 54.19% 0.1951 2004 10 0 6,475 0.00% 141.39% 0.0000

2003 11 416,227 522,409 79.67% 68.76% 1.1587 2003 11 0 7,736 0.00% 96.11% 0.0000

2002 12 62,364 321,706 19.39% 75.21% 0.2577 2002 12 0 1,535 0.00% 44.27% 0.0000

2001 13 0 9,327 0.00% 103.63% 0.0000 2001 13 0 0 0.00% N/A 0.0000

Total 542,193 1,527,011 35.51% 63.13% 0.5625 Total 0 15,745 0.00% 109.68% 0.0000

Page 179: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Lifetime Benefit Period, No Inflation Protection Policy Form(s): P103, P104, P106, P107 - Lifetime Benefit Period, No Inflation Protection

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Expected Actual to Calendar Issue Calendar Incurred Earned Loss Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Expected

2014 2006 9 0 23,752 0.00% 23.39% 0.0000 2014 2006 9 0 0 0.00% N/A 0.0000

2005 10 0 50,478 0.00% 51.40% 0.0000 2005 10 0 0 0.00% N/A 0.0000

2004 11 369,045 578,755 63.77% 62.53% 1.0197 2004 11 0 6,523 0.00% 170.66% 0.0000

2003 12 223,586 529,422 42.23% 76.63% 0.5511 2003 12 0 8,321 0.00% 103.83% 0.0000

2002 13 427,178 324,109 131.80% 80.49% 1.6375 2002 13 0 1,370 0.00% 56.35% 0.0000

2001 14 0 10,304 0.00% 111.97% 0.0000 2001 14 0 0 0.00% N/A 0.0000

Total 1,019,809 1,516,821 67.23% 70.64% 0.9517 Total 0 16,213 0.00% 126.70% 0.0000

2015 2006 10 0 19,634 0.00% 34.71% 0.0000 2015 2006 10 0 0 0.00% N/A 0.0000

2005 11 337,733 48,097 702.19% 60.33% 11.6389 2005 11 0 0 0.00% N/A 0.0000

2004 12 348,560 580,830 60.01% 68.47% 0.8764 2004 12 0 7,039 0.00% 186.12% 0.0000

2003 13 232,564 573,718 40.54% 77.92% 0.5202 2003 13 0 9,078 0.00% 108.89% 0.0000

2002 14 337,201 349,468 96.49% 80.07% 1.2051 2002 14 0 1,446 0.00% 62.04% 0.0000

2001 15 0 11,828 0.00% 114.02% 0.0000 2001 15 0 0 0.00% N/A 0.0000

Total 1,256,058 1,583,575 79.32% 74.13% 1.0700 Total 0 17,563 0.00% 135.99% 0.0000

2016 2006 11 0 8,996 0.00% 60.87% 0.0000 2016 2006 11 0 0 0.00% N/A 0.0000

2005 12 0 46,630 0.00% 61.17% 0.0000 2005 12 0 0 0.00% N/A 0.0000

2004 13 481,394 580,693 82.90% 76.13% 1.0889 2004 13 0 7,680 0.00% 198.02% 0.0000

2003 14 274,415 564,629 48.60% 84.72% 0.5736 2003 14 0 9,904 0.00% 113.79% 0.0000

2002 15 265,215 351,120 75.53% 88.18% 0.8566 2002 15 0 1,578 0.00% 66.88% 0.0000

2001 16 0 13,672 0.00% 113.09% 0.0000 2001 16 0 0 0.00% N/A 0.0000

Total 1,021,024 1,565,740 65.21% 81.72% 0.7980 Total 0 19,162 0.00% 143.69% 0.0000

2017 2006 12 399 8,766 4.56% 70.92% 0.0642 2017 2006 12 0 0 0.00% N/A 0.0000

2005 13 2,144 50,394 4.25% 66.21% 0.0642 2005 13 0 0 0.00% N/A 0.0000

2004 14 397,830 558,646 71.21% 80.58% 0.8838 2004 14 89,234 8,379 1064.95% 209.88% 5.0742

2003 15 554,544 564,821 98.18% 91.12% 1.0775 2003 15 823 10,348 7.96% 123.85% 0.0642

2002 16 713,179 345,318 206.53% 89.25% 2.3141 2002 16 80 1,722 4.67% 72.70% 0.0642

2001 17 1,044 13,976 7.47% 116.24% 0.0642 2001 17 0 0 0.00% N/A 0.0000

Total 1,669,141 1,541,922 108.25% 86.18% 1.2561 Total 90,137 20,449 440.80% 154.80% 2.8476

GRAND TOTAL 12,421,434 25,006,744 49.67% 40.92% 1.2140 GRAND TOTAL 119,801 284,408 42.12% 71.19% 0.5917

Durational Totals Durational Totals

Calendar Incurred Earned Loss Expected Actual to Calendar Incurred Earned Loss Expected Actual to

Duration Claims Premiums Ratio Loss Ratio Expected Duration Claims Premiums Ratio Loss Ratio Expected

1 0 1,279,843 0.00% 5.10% 0.0000 1 0 16,141 0.00% 7.32% 0.0000

2 562,503 2,304,107 24.41% 7.76% 3.1445 2 0 26,432 0.00% 11.35% 0.0000

3 604,647 2,027,129 29.83% 12.46% 2.3947 3 0 19,546 0.00% 22.62% 0.0000

4 18,917 1,952,009 0.97% 16.61% 0.0583 4 0 21,228 0.00% 27.83% 0.0000

5 497,753 1,912,728 26.02% 21.41% 1.2154 5 0 21,746 0.00% 35.62% 0.0000

6 1,227,101 1,819,729 67.43% 27.19% 2.4797 6 0 22,006 0.00% 46.10% 0.0000

7 933,768 1,706,877 54.71% 34.29% 1.5954 7 29,664 21,456 138.25% 58.67% 2.3566

8 620,930 1,600,453 38.80% 42.09% 0.9217 8 0 17,879 0.00% 75.52% 0.0000

9 1,536,956 1,555,987 98.78% 48.38% 2.0417 9 0 17,594 0.00% 88.98% 0.0000

10 566,362 1,532,703 36.95% 55.18% 0.6697 10 0 15,689 0.00% 101.75% 0.0000

11 1,530,881 1,497,143 102.25% 64.82% 1.5774 11 0 16,291 0.00% 117.87% 0.0000

12 634,909 1,496,013 42.44% 72.74% 0.5835 12 0 16,894 0.00% 132.71% 0.0000

13 1,143,279 1,538,241 74.32% 77.56% 0.9583 13 0 18,128 0.00% 142.69% 0.0000

14 1,009,446 1,483,047 68.07% 82.25% 0.8275 14 89,234 19,730 452.28% 150.81% 2.9991

15 819,760 927,769 88.36% 90.30% 0.9785 15 823 11,926 6.90% 116.31% 0.0594

16 713,179 358,991 198.66% 90.16% 2.2035 16 80 1,722 4.67% 72.70% 0.0642

17 1,044 13,976 7.47% 116.24% 0.0642 17 0 0 0.00% N/A 0.0000

TOTAL 12,421,434 25,006,744 49.67% 40.92% 1.2140 TOTAL 119,801 284,408 42.12% 71.19% 0.5917

Page 180: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Limited Benefit Periods with Inflation Protection Policy Form(s): P103, P104, P106, P107 - Limited Benefit Periods with Inflation Protection

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Expected Actual to Calendar Issue Calendar Incurred Earned Loss Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Expected

2001 2001 1 0 3,018 0.00% 3.01% 0.0000 2001 2001 1 0 0 0.00% N/A 0.0000

Total 0 3,018 0.00% 3.01% 0.0000 Total 0 0 0.00% N/A 0.0000

2002 2002 1 0 246,693 0.00% 3.57% 0.0000 2002 2002 1 0 3,200 0.00% 1.94% 0.0000

2001 2 0 17,367 0.00% 3.44% 0.0000 2001 2 0 0 0.00% N/A 0.0000

Total 0 264,060 0.00% 3.56% 0.0000 Total 0 3,200 0.00% 1.94% 0.0000

2003 2003 1 0 597,142 0.00% 4.11% 0.0000 2003 2003 1 0 21,826 0.00% 2.32% 0.0000

2002 2 11,177 533,286 2.10% 5.47% 0.3831 2002 2 0 3,282 0.00% 4.29% 0.0000

2001 3 0 17,427 0.00% 5.63% 0.0000 2001 3 0 0 0.00% N/A 0.0000

Total 11,177 1,147,855 0.97% 4.77% 0.2043 Total 0 25,108 0.00% 2.58% 0.0000

2004 2004 1 0 1,888,490 0.00% 3.13% 0.0000 2004 2004 1 0 32,200 0.00% 3.43% 0.0000

2003 2 120,040 1,423,093 8.44% 5.59% 1.5084 2003 2 0 47,175 0.00% 3.77% 0.0000

2002 3 0 529,050 0.00% 8.87% 0.0000 2002 3 0 3,282 0.00% 5.95% 0.0000

2001 4 0 17,427 0.00% 7.65% 0.0000 2001 4 0 0 0.00% N/A 0.0000

Total 120,040 3,858,060 3.11% 4.84% 0.6424 Total 0 82,656 0.00% 3.72% 0.0000

2005 2005 1 0 1,391,585 0.00% 2.42% 0.0000 2005 2005 1 0 0 0.00% N/A 0.0000

2004 2 985 3,734,756 0.03% 4.54% 0.0058 2004 2 0 49,412 0.00% 5.40% 0.0000

2003 3 91,387 1,397,066 6.54% 8.97% 0.7293 2003 3 0 44,590 0.00% 6.19% 0.0000

2002 4 314 524,092 0.06% 11.99% 0.0050 2002 4 0 3,282 0.00% 8.00% 0.0000

2001 5 0 17,318 0.00% 10.00% 0.0000 2001 5 0 0 0.00% N/A 0.0000

Total 92,686 7,064,817 1.31% 5.56% 0.2358 Total 0 97,283 0.00% 5.85% 0.0000

2006 2006 1 0 187,458 0.00% 2.11% 0.0000 2006 2006 1 0 0 0.00% N/A 0.0000

2005 2 653 1,953,994 0.03% 4.23% 0.0079 2005 2 0 0 0.00% N/A 0.0000

2004 3 176,232 3,493,213 5.04% 7.19% 0.7013 2004 3 0 45,667 0.00% 8.32% 0.0000

2003 4 454,784 1,341,439 33.90% 12.15% 2.7907 2003 4 0 38,091 0.00% 7.41% 0.0000

2002 5 312 499,996 0.06% 16.06% 0.0039 2002 5 0 3,282 0.00% 9.93% 0.0000

2001 6 0 16,102 0.00% 13.44% 0.0000 2001 6 0 0 0.00% N/A 0.0000

Total 631,981 7,492,202 8.44% 7.79% 1.0833 Total 0 87,040 0.00% 7.98% 0.0000

2007 2006 2 0 260,484 0.00% 3.84% 0.0000 2007 2006 2 0 0 0.00% N/A 0.0000

2005 3 0 1,845,832 0.00% 6.37% 0.0000 2005 3 0 0 0.00% N/A 0.0000

2004 4 41,370 3,427,571 1.21% 9.52% 0.1268 2004 4 0 45,725 0.00% 11.15% 0.0000

2003 5 10,602 1,291,680 0.82% 15.53% 0.0528 2003 5 0 35,061 0.00% 9.49% 0.0000

2002 6 161,869 483,698 33.46% 20.72% 1.6149 2002 6 0 3,282 0.00% 12.36% 0.0000

2001 7 0 15,124 0.00% 15.44% 0.0000 2001 7 0 0 0.00% N/A 0.0000

Total 213,841 7,324,389 2.92% 10.34% 0.2824 Total 0 84,068 0.00% 10.51% 0.0000

2008 2006 3 0 250,562 0.00% 5.74% 0.0000 2008 2006 3 0 0 0.00% N/A 0.0000

2005 4 2,330 1,803,853 0.13% 8.56% 0.0151 2005 4 0 0 0.00% N/A 0.0000

2004 5 678,553 3,351,557 20.25% 12.36% 1.6376 2004 5 0 45,210 0.00% 14.04% 0.0000

2003 6 657 1,254,242 0.05% 19.45% 0.0027 2003 6 0 35,061 0.00% 12.12% 0.0000

2002 7 0 464,347 0.00% 26.91% 0.0000 2002 7 0 3,282 0.00% 15.72% 0.0000

2001 8 0 14,028 0.00% 12.49% 0.0000 2001 8 0 0 0.00% N/A 0.0000

Total 681,540 7,138,590 9.55% 13.36% 0.7145 Total 0 83,553 0.00% 13.30% 0.0000

2009 2006 4 0 242,793 0.00% 7.58% 0.0000 2009 2006 4 0 0 0.00% N/A 0.0000

2005 5 685,833 1,755,198 39.07% 11.05% 3.5374 2005 5 0 0 0.00% N/A 0.0000

2004 6 236,222 3,275,753 7.21% 15.89% 0.4539 2004 6 0 40,779 0.00% 13.87% 0.0000

2003 7 1,787 1,224,819 0.15% 25.01% 0.0058 2003 7 0 35,061 0.00% 15.58% 0.0000

2002 8 547,636 450,554 121.55% 34.41% 3.5321 2002 8 0 3,282 0.00% 20.57% 0.0000

2001 9 0 14,028 0.00% 15.87% 0.0000 2001 9 0 0 0.00% N/A 0.0000

Total 1,471,478 6,963,146 21.13% 17.18% 1.2299 Total 0 79,122 0.00% 14.90% 0.0000

2010 2006 5 325 239,341 0.14% 9.17% 0.0148 2010 2006 5 0 0 0.00% N/A 0.0000

2005 6 462,682 1,723,984 26.84% 13.84% 1.9385 2005 6 0 0 0.00% N/A 0.0000

2004 7 850,143 3,316,574 25.63% 19.59% 1.3085 2004 7 0 40,651 0.00% 17.63% 0.0000

2003 8 82,201 1,226,009 6.70% 30.70% 0.2184 2003 8 0 34,109 0.00% 20.09% 0.0000

2002 9 77,073 452,299 17.04% 41.46% 0.4110 2002 9 0 3,282 0.00% 26.50% 0.0000

2001 10 0 14,423 0.00% 19.33% 0.0000 2001 10 0 0 0.00% N/A 0.0000

Total 1,472,424 6,972,631 21.12% 21.18% 0.9969 Total 0 78,042 0.00% 19.08% 0.0000

2011 2006 6 0 252,421 0.00% 10.82% 0.0000 2011 2006 6 0 0 0.00% N/A 0.0000

2005 7 115,932 1,860,583 6.23% 15.81% 0.3941 2005 7 0 0 0.00% N/A 0.0000

2004 8 165,594 3,573,096 4.63% 22.52% 0.2058 2004 8 0 42,129 0.00% 21.27% 0.0000

2003 9 388,583 1,307,478 29.72% 34.19% 0.8693 2003 9 0 34,675 0.00% 24.75% 0.0000

2002 10 66,321 487,307 13.61% 45.77% 0.2974 2002 10 0 3,474 0.00% 31.35% 0.0000

2001 11 0 15,296 0.00% 22.72% 0.0000 2001 11 0 0 0.00% N/A 0.0000

Total 736,430 7,496,181 9.82% 24.01% 0.4092 Total 0 80,279 0.00% 23.21% 0.0000

2012 2006 7 0 255,973 0.00% 13.60% 0.0000 2012 2006 7 0 0 0.00% N/A 0.0000

2005 8 50,896 1,922,461 2.65% 18.69% 0.1416 2005 8 0 0 0.00% N/A 0.0000

2004 9 612,116 3,646,752 16.79% 26.81% 0.6261 2004 9 0 44,438 0.00% 25.15% 0.0000

2003 10 619,837 1,341,679 46.20% 39.81% 1.1605 2003 10 0 36,608 0.00% 29.34% 0.0000

2002 11 196,258 480,595 40.84% 53.73% 0.7600 2002 11 0 3,683 0.00% 35.61% 0.0000

2001 12 0 11,038 0.00% 38.40% 0.0000 2001 12 0 0 0.00% N/A 0.0000

Total 1,479,107 7,658,498 19.31% 28.31% 0.6821 Total 0 84,729 0.00% 27.42% 0.0000

2013 2006 8 0 279,276 0.00% 15.69% 0.0000 2013 2006 8 0 0 0.00% N/A 0.0000

2005 9 408,367 1,925,575 21.21% 22.71% 0.9339 2005 9 0 0 0.00% N/A 0.0000

2004 10 1,277,034 3,676,242 34.74% 31.41% 1.1061 2004 10 0 47,096 0.00% 29.68% 0.0000

2003 11 202,247 1,341,980 15.07% 46.60% 0.3234 2003 11 0 38,509 0.00% 33.57% 0.0000

2002 12 127,013 463,447 27.41% 64.88% 0.4224 2002 12 0 3,905 0.00% 40.35% 0.0000

2001 13 0 11,074 0.00% 45.60% 0.0000 2001 13 0 0 0.00% N/A 0.0000

Total 2,014,660 7,697,594 26.17% 33.35% 0.7849 Total 0 89,510 0.00% 31.82% 0.0000

Page 181: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Limited Benefit Periods with Inflation Protection Policy Form(s): P103, P104, P106, P107 - Limited Benefit Periods with Inflation Protection

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Expected Actual to Calendar Issue Calendar Incurred Earned Loss Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Expected

2014 2006 9 333 293,637 0.11% 18.10% 0.0063 2014 2006 9 0 0 0.00% N/A 0.0000

2005 10 546,163 1,907,661 28.63% 27.61% 1.0369 2005 10 0 0 0.00% N/A 0.0000

2004 11 1,040,831 3,562,298 29.22% 37.51% 0.7790 2004 11 0 46,986 0.00% 35.26% 0.0000

2003 12 815,020 1,313,501 62.05% 54.62% 1.1359 2003 12 0 39,668 0.00% 39.03% 0.0000

2002 13 587,512 480,501 122.27% 70.43% 1.7362 2002 13 0 3,911 0.00% 49.73% 0.0000

2001 14 0 11,430 0.00% 50.92% 0.0000 2001 14 0 0 0.00% N/A 0.0000

Total 2,989,860 7,569,028 39.50% 39.34% 1.0041 Total 0 90,564 0.00% 37.54% 0.0000

2015 2006 10 0 305,846 0.00% 20.74% 0.0000 2015 2006 10 0 0 0.00% N/A 0.0000

2005 11 620,038 1,739,408 35.65% 34.95% 1.0199 2005 11 0 0 0.00% N/A 0.0000

2004 12 1,240,769 3,537,088 35.08% 43.39% 0.8084 2004 12 225,529 47,764 472.17% 40.29% 11.7196

2003 13 807,943 1,360,650 59.38% 59.67% 0.9951 2003 13 0 42,666 0.00% 44.05% 0.0000

2002 14 122,469 488,404 25.08% 78.01% 0.3215 2002 14 0 2,772 0.00% 44.11% 0.0000

2001 15 0 11,503 0.00% 59.69% 0.0000 2001 15 0 0 0.00% N/A 0.0000

Total 2,791,219 7,442,899 37.50% 45.76% 0.8195 Total 225,529 93,202 241.98% 42.12% 5.7447

2016 2006 11 0 305,428 0.00% 24.08% 0.0000 2016 2006 11 0 0 0.00% N/A 0.0000

2005 12 386,426 1,650,121 23.42% 42.70% 0.5484 2005 12 0 0 0.00% N/A 0.0000

2004 13 1,517,046 3,517,446 43.13% 50.03% 0.8621 2004 13 106,158 47,920 221.53% 43.56% 5.0859

2003 14 1,091,027 1,347,638 80.96% 67.39% 1.2014 2003 14 75,891 44,373 171.03% 47.00% 3.6393

2002 15 442,467 496,715 89.08% 87.90% 1.0134 2002 15 366 2,986 12.25% 51.13% 0.2396

2001 16 0 12,060 0.00% 65.86% 0.0000 2001 16 0 0 0.00% N/A 0.0000

Total 3,436,966 7,329,408 46.89% 53.08% 0.8834 Total 182,415 95,279 191.45% 45.40% 4.2174

2017 2006 12 5,565 312,410 1.78% 27.73% 0.0642 2017 2006 12 0 0 0.00% N/A 0.0000

2005 13 1,064,920 1,692,402 62.92% 48.63% 1.2938 2005 13 0 0 0.00% N/A 0.0000

2004 14 2,229,326 3,550,757 62.78% 54.42% 1.1536 2004 14 1,360 45,268 3.00% 46.77% 0.0642

2003 15 733,516 1,338,199 54.81% 73.43% 0.7464 2003 15 1,524 45,152 3.37% 52.53% 0.0642

2002 16 358,771 527,873 67.97% 88.58% 0.7672 2002 16 93 3,258 2.85% 44.34% 0.0642

2001 17 601 12,072 4.98% 77.47% 0.0642 2001 17 0 0 0.00% N/A 0.0000

Total 4,392,699 7,433,712 59.09% 57.87% 1.0211 Total 2,977 93,679 3.18% 49.46% 0.0642

GRAND TOTAL 22,536,110 100,856,087 22.34% 26.50% 0.8433 GRAND TOTAL 410,921 1,247,314 32.94% 23.75% 1.3871

Durational Totals Durational Totals

Calendar Incurred Earned Loss Expected Actual to Calendar Incurred Earned Loss Expected Actual to

Duration Claims Premiums Ratio Loss Ratio Expected Duration Claims Premiums Ratio Loss Ratio Expected

1 0 4,314,385 0.00% 3.02% 0.0000 1 0 57,226 0.00% 2.93% 0.0000

2 132,856 7,922,980 1.68% 4.69% 0.3576 2 0 99,868 0.00% 4.59% 0.0000

3 267,619 7,533,150 3.55% 7.39% 0.4809 3 0 93,539 0.00% 7.22% 0.0000

4 498,798 7,357,176 6.78% 9.87% 0.6867 4 0 87,098 0.00% 9.40% 0.0000

5 1,375,624 7,155,089 19.23% 12.76% 1.5069 5 0 83,553 0.00% 11.97% 0.0000

6 861,430 7,006,201 12.30% 16.17% 0.7604 6 0 79,122 0.00% 13.03% 0.0000

7 967,862 7,137,420 13.56% 19.79% 0.6853 7 0 78,994 0.00% 16.64% 0.0000

8 846,327 7,465,426 11.34% 23.32% 0.4861 8 0 79,520 0.00% 20.74% 0.0000

9 1,486,471 7,639,770 19.46% 27.55% 0.7062 9 0 82,395 0.00% 25.04% 0.0000

10 2,509,356 7,733,158 32.45% 32.39% 1.0019 10 0 87,178 0.00% 29.61% 0.0000

11 2,059,374 7,445,004 27.66% 39.01% 0.7090 11 0 89,178 0.00% 34.55% 0.0000

12 2,574,793 7,287,605 35.33% 45.95% 0.7689 12 225,529 91,337 246.92% 39.74% 6.2126

13 3,977,421 7,062,073 56.32% 52.93% 1.0640 13 106,158 94,496 112.34% 44.03% 2.5513

14 3,442,822 5,398,229 63.78% 59.79% 1.0667 14 77,251 92,413 83.59% 46.80% 1.7863

15 1,175,983 1,846,418 63.69% 77.24% 0.8246 15 1,890 48,139 3.93% 52.44% 0.0749

16 358,771 539,932 66.45% 88.08% 0.7544 16 93 3,258 2.85% 44.34% 0.0642

17 601 12,072 4.98% 77.47% 0.0642 17 0 0 0.00% N/A 0.0000

TOTAL 22,536,110 100,856,087 22.34% 26.50% 0.8433 TOTAL 410,921 1,247,314 32.94% 23.75% 1.3871

Page 182: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Lifetime Benefit Periods with Inflation Protection Policy Form(s): P103, P104, P106, P107 - Lifetime Benefit Periods with Inflation Protection

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Expected Actual to Calendar Issue Calendar Incurred Earned Loss Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Expected

2001 2001 1 0 7,046 0.00% 5.83% 0.0000 2001 2001 1 0 0 0.00% N/A 0.0000

Total 0 7,046 0.00% 5.83% 0.0000 Total 0 0 0.00% N/A 0.0000

2002 2002 1 0 280,220 0.00% 4.32% 0.0000 2002 2002 1 0 5,024 0.00% 3.38% 0.0000

2001 2 0 37,537 0.00% 7.51% 0.0000 2001 2 0 0 0.00% N/A 0.0000

Total 0 317,757 0.00% 4.70% 0.0000 Total 0 5,024 0.00% 3.38% 0.0000

2003 2003 1 0 643,020 0.00% 3.32% 0.0000 2003 2003 1 0 21,169 0.00% 6.19% 0.0000

2002 2 3,886 708,723 0.55% 5.99% 0.0916 2002 2 0 18,805 0.00% 5.23% 0.0000

2001 3 0 37,875 0.00% 13.69% 0.0000 2001 3 0 0 0.00% N/A 0.0000

Total 3,886 1,389,618 0.28% 4.96% 0.0564 Total 0 39,974 0.00% 5.74% 0.0000

2004 2004 1 313 2,078,654 0.02% 2.60% 0.0058 2004 2004 1 0 47,187 0.00% 4.67% 0.0000

2003 2 25,953 1,701,360 1.53% 4.67% 0.3268 2003 2 0 69,890 0.00% 9.17% 0.0000

2002 3 309 695,775 0.04% 9.75% 0.0045 2002 3 0 18,092 0.00% 9.20% 0.0000

2001 4 0 37,875 0.00% 18.72% 0.0000 2001 4 0 0 0.00% N/A 0.0000

Total 26,574 4,513,664 0.59% 4.62% 0.1274 Total 0 135,169 0.00% 7.60% 0.0000

2005 2005 1 0 815,217 0.00% 2.70% 0.0000 2005 2005 1 0 0 0.00% N/A 0.0000

2004 2 99,505 4,419,953 2.25% 3.92% 0.5749 2004 2 0 66,287 0.00% 7.80% 0.0000

2003 3 0 1,675,761 0.00% 7.74% 0.0000 2003 3 0 69,940 0.00% 14.37% 0.0000

2002 4 0 692,406 0.00% 12.20% 0.0000 2002 4 0 15,866 0.00% 11.85% 0.0000

2001 5 0 37,875 0.00% 24.67% 0.0000 2001 5 0 0 0.00% N/A 0.0000

Total 99,505 7,641,212 1.30% 5.48% 0.2376 Total 0 152,094 0.00% 11.25% 0.0000

2006 2006 1 0 155,641 0.00% 2.06% 0.0000 2006 2006 1 0 0 0.00% N/A 0.0000

2005 2 0 1,063,692 0.00% 5.12% 0.0000 2005 2 0 0 0.00% N/A 0.0000

2004 3 7,968 4,157,733 0.19% 6.41% 0.0299 2004 3 0 61,693 0.00% 11.62% 0.0000

2003 4 180,699 1,645,802 10.98% 10.33% 1.0631 2003 4 0 69,940 0.00% 19.05% 0.0000

2002 5 88,117 671,212 13.13% 15.41% 0.8521 2002 5 0 13,166 0.00% 13.57% 0.0000

2001 6 0 37,875 0.00% 31.06% 0.0000 2001 6 0 0 0.00% N/A 0.0000

Total 276,783 7,731,954 3.58% 7.88% 0.4543 Total 0 144,799 0.00% 15.39% 0.0000

2007 2006 2 0 237,322 0.00% 3.95% 0.0000 2007 2006 2 0 0 0.00% N/A 0.0000

2005 3 2,218 1,021,963 0.22% 7.58% 0.0286 2005 3 0 0 0.00% N/A 0.0000

2004 4 755,162 4,029,029 18.74% 8.56% 2.1893 2004 4 0 61,007 0.00% 15.68% 0.0000

2003 5 6,125 1,611,645 0.38% 13.27% 0.0286 2003 5 0 69,940 0.00% 24.81% 0.0000

2002 6 565,983 640,248 88.40% 17.79% 4.9697 2002 6 0 13,166 0.00% 16.69% 0.0000

2001 7 0 37,875 0.00% 39.20% 0.0000 2001 7 0 0 0.00% N/A 0.0000

Total 1,329,489 7,578,081 17.54% 10.22% 1.7170 Total 0 144,113 0.00% 20.20% 0.0000

2008 2006 3 0 235,103 0.00% 6.01% 0.0000 2008 2006 3 0 0 0.00% N/A 0.0000

2005 4 0 995,261 0.00% 10.01% 0.0000 2005 4 0 0 0.00% N/A 0.0000

2004 5 10,283 3,907,969 0.26% 10.87% 0.0242 2004 5 0 61,007 0.00% 20.13% 0.0000

2003 6 13,216 1,562,023 0.85% 17.04% 0.0496 2003 6 0 69,820 0.00% 32.05% 0.0000

2002 7 34,293 599,123 5.72% 22.08% 0.2592 2002 7 0 13,079 0.00% 20.75% 0.0000

2001 8 0 36,671 0.00% 50.09% 0.0000 2001 8 0 0 0.00% N/A 0.0000

Total 57,792 7,336,151 0.79% 13.03% 0.0605 Total 0 143,905 0.00% 25.97% 0.0000

2009 2006 4 0 220,750 0.00% 8.22% 0.0000 2009 2006 4 0 0 0.00% N/A 0.0000

2005 5 298,124 986,074 30.23% 12.71% 2.3789 2005 5 0 0 0.00% N/A 0.0000

2004 6 1,656,150 3,823,986 43.31% 13.66% 3.1711 2004 6 0 60,992 0.00% 25.73% 0.0000

2003 7 398 1,527,937 0.03% 21.71% 0.0012 2003 7 0 67,739 0.00% 42.12% 0.0000

2002 8 22,692 578,193 3.92% 27.51% 0.1427 2002 8 0 10,742 0.00% 25.89% 0.0000

2001 9 319 33,482 0.95% 56.94% 0.0167 2001 9 0 0 0.00% N/A 0.0000

Total 1,977,683 7,170,422 27.58% 16.40% 1.6823 Total 0 139,473 0.00% 33.70% 0.0000

2010 2006 5 0 224,489 0.00% 10.07% 0.0000 2010 2006 5 0 0 0.00% N/A 0.0000

2005 6 9,486 981,138 0.97% 15.42% 0.0627 2005 6 0 0 0.00% N/A 0.0000

2004 7 282,018 3,868,897 7.29% 16.54% 0.4408 2004 7 0 60,959 0.00% 32.37% 0.0000

2003 8 316,257 1,536,109 20.59% 25.67% 0.8019 2003 8 0 55,969 0.00% 36.55% 0.0000

2002 9 927,457 572,571 161.98% 33.73% 4.8018 2002 9 0 10,807 0.00% 32.87% 0.0000

2001 10 0 23,207 0.00% 50.02% 0.0000 2001 10 0 0 0.00% N/A 0.0000

Total 1,535,217 7,206,412 21.30% 19.60% 1.0866 Total 0 127,735 0.00% 34.24% 0.0000

2011 2006 6 0 238,546 0.00% 11.81% 0.0000 2011 2006 6 0 0 0.00% N/A 0.0000

2005 7 0 1,063,898 0.00% 17.49% 0.0000 2005 7 0 0 0.00% N/A 0.0000

2004 8 911,719 4,236,198 21.52% 18.90% 1.1386 2004 8 352,382 63,568 554.34% 38.73% 14.3112

2003 9 703,106 1,675,595 41.96% 28.57% 1.4689 2003 9 0 53,997 0.00% 37.60% 0.0000

2002 10 321 615,870 0.05% 38.57% 0.0014 2002 10 0 11,401 0.00% 39.28% 0.0000

2001 11 0 25,161 0.00% 57.39% 0.0000 2001 11 0 0 0.00% N/A 0.0000

Total 1,615,147 7,855,269 20.56% 22.22% 0.9252 Total 352,382 128,965 273.24% 38.31% 7.1326

2012 2006 7 0 232,587 0.00% 14.96% 0.0000 2012 2006 7 0 0 0.00% N/A 0.0000

2005 8 0 1,101,210 0.00% 20.61% 0.0000 2005 8 0 0 0.00% N/A 0.0000

2004 9 1,245,233 4,356,120 28.59% 22.28% 1.2831 2004 9 0 55,709 0.00% 33.33% 0.0000

2003 10 5,349 1,702,712 0.31% 33.29% 0.0094 2003 10 0 56,409 0.00% 43.35% 0.0000

2002 11 381,405 573,695 66.48% 49.39% 1.3460 2002 11 0 12,085 0.00% 45.43% 0.0000

2001 12 823,503 20,252 4066.30% 86.01% 47.2776 2001 12 0 0 0.00% N/A 0.0000

Total 2,455,490 7,986,575 30.75% 26.29% 1.1693 Total 0 124,203 0.00% 39.06% 0.0000

2013 2006 8 0 248,403 0.00% 17.04% 0.0000 2013 2006 8 0 0 0.00% N/A 0.0000

2005 9 17,926 1,106,430 1.62% 24.73% 0.0655 2005 9 0 0 0.00% N/A 0.0000

2004 10 1,197,209 4,414,660 27.12% 26.79% 1.0123 2004 10 0 58,544 0.00% 36.60% 0.0000

2003 11 1,468,259 1,572,138 93.39% 41.60% 2.2452 2003 11 0 56,334 0.00% 48.91% 0.0000

2002 12 0 479,056 0.00% 70.15% 0.0000 2002 12 0 12,800 0.00% 52.31% 0.0000

2001 13 0 19,028 0.00% 99.44% 0.0000 2001 13 0 0 0.00% N/A 0.0000

Total 2,683,394 7,839,715 34.23% 31.98% 1.0701 Total 0 127,679 0.00% 43.61% 0.0000

Page 183: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms Exhibit II-Durational LRs: NAIC Loss Ratio Test For Long Term Care Policy Forms

Company Name: Physicians Mutual Insurance Company Company Name: Physicians Mutual Insurance Company

Policy Form(s): P103, P104, P106, P107 - Lifetime Benefit Periods with Inflation Protection Policy Form(s): P103, P104, P106, P107 - Lifetime Benefit Periods with Inflation Protection

Experience Base: National Experience Experience Base: Pennsylvania Experience

Calendar Issue Calendar Incurred Earned Loss Expected Actual to Calendar Issue Calendar Incurred Earned Loss Expected Actual to

Year Year Duration Claims Premiums Ratio Loss Ratio Expected Year Year Duration Claims Premiums Ratio Loss Ratio Expected

2014 2006 9 0 271,267 0.00% 19.35% 0.0000 2014 2006 9 0 0 0.00% N/A 0.0000

2005 10 416,870 1,138,953 36.60% 29.29% 1.2497 2005 10 0 0 0.00% N/A 0.0000

2004 11 1,837,610 3,793,989 48.43% 36.90% 1.3125 2004 11 0 60,567 0.00% 42.52% 0.0000

2003 12 340,642 1,291,381 26.38% 58.89% 0.4479 2003 12 0 57,946 0.00% 56.21% 0.0000

2002 13 217,282 493,957 43.99% 81.59% 0.5391 2002 13 0 13,043 0.00% 62.48% 0.0000

2001 14 0 19,684 0.00% 117.17% 0.0000 2001 14 0 0 0.00% N/A 0.0000

Total 2,812,404 7,009,231 40.12% 42.41% 0.9460 Total 0 131,556 0.00% 50.53% 0.0000

2015 2006 10 13,339 282,988 4.71% 22.60% 0.2085 2015 2006 10 0 0 0.00% N/A 0.0000

2005 11 679,574 904,729 75.11% 44.45% 1.6899 2005 11 0 0 0.00% N/A 0.0000

2004 12 1,485,902 3,121,928 47.60% 52.36% 0.9091 2004 12 0 65,762 0.00% 46.30% 0.0000

2003 13 633,269 1,388,040 45.62% 63.33% 0.7204 2003 13 0 60,113 0.00% 61.35% 0.0000

2002 14 141,175 533,613 26.46% 88.89% 0.2976 2002 14 0 13,606 0.00% 67.92% 0.0000

2001 15 0 21,182 0.00% 130.58% 0.0000 2001 15 0 0 0.00% N/A 0.0000

Total 2,953,260 6,252,480 47.23% 55.69% 0.8482 Total 0 139,481 0.00% 54.90% 0.0000

2016 2006 11 0 266,579 0.00% 28.64% 0.0000 2016 2006 11 0 0 0.00% N/A 0.0000

2005 12 1,216,145 837,414 145.23% 55.57% 2.6135 2005 12 0 0 0.00% N/A 0.0000

2004 13 1,047,491 3,180,254 32.94% 60.14% 0.5477 2004 13 0 69,200 0.00% 52.31% 0.0000

2003 14 922,229 1,382,317 66.72% 74.02% 0.9013 2003 14 0 64,620 0.00% 67.47% 0.0000

2002 15 936,535 545,002 171.84% 99.45% 1.7280 2002 15 0 14,748 0.00% 77.06% 0.0000

2001 16 0 22,423 0.00% 148.19% 0.0000 2001 16 0 0 0.00% N/A 0.0000

Total 4,122,400 6,233,989 66.13% 65.01% 1.0172 Total 0 148,568 0.00% 61.36% 0.0000

2017 2006 12 5,802 265,727 2.18% 33.98% 0.0642 2017 2006 12 0 0 0.00% N/A 0.0000

2005 13 993,646 839,427 118.37% 63.44% 1.8659 2005 13 0 0 0.00% N/A 0.0000

2004 14 2,381,178 3,281,311 72.57% 65.83% 1.1024 2004 14 3,012 70,400 4.28% 59.24% 0.0722

2003 15 907,577 1,479,424 61.35% 80.33% 0.7636 2003 15 3,371 69,393 4.86% 75.60% 0.0642

2002 16 717,934 573,132 125.27% 101.48% 1.2344 2002 16 908 15,963 5.69% 88.54% 0.0642

2001 17 2,353 24,873 9.46% 147.22% 0.0642 2001 17 0 0 0.00% N/A 0.0000

Total 5,008,489 6,463,895 77.48% 71.00% 1.0913 Total 7,291 155,756 4.68% 69.53% 0.0673

GRAND TOTAL 26,957,513 100,533,471 26.81% 26.95% 0.9952 GRAND TOTAL 359,672 1,988,493 18.09% 35.48% 0.5098

Durational Totals Durational Totals

Calendar Incurred Earned Loss Expected Actual to Calendar Incurred Earned Loss Expected Actual to

Duration Claims Premiums Ratio Loss Ratio Expected Duration Claims Premiums Ratio Loss Ratio Expected

1 313 3,979,798 0.01% 2.84% 0.0028 1 0 73,381 0.00% 5.02% 0.0000

2 129,344 8,168,587 1.58% 4.43% 0.3577 2 0 154,982 0.00% 8.11% 0.0000

3 10,494 7,824,210 0.13% 7.17% 0.0187 3 0 149,725 0.00% 12.61% 0.0000

4 935,861 7,621,123 12.28% 9.50% 1.2922 4 0 146,813 0.00% 16.87% 0.0000

5 402,649 7,439,264 5.41% 12.09% 0.4477 5 0 144,113 0.00% 21.80% 0.0000

6 2,244,835 7,283,816 30.82% 15.01% 2.0527 6 0 143,978 0.00% 27.97% 0.0000

7 316,709 7,330,316 4.32% 18.27% 0.2364 7 0 141,776 0.00% 35.96% 0.0000

8 1,250,668 7,736,785 16.17% 21.22% 0.7617 8 352,382 130,278 270.48% 36.73% 7.3632

9 2,894,042 8,015,465 36.11% 24.80% 1.4561 9 0 120,513 0.00% 35.21% 0.0000

10 1,633,088 8,178,390 19.97% 29.30% 0.6815 10 0 126,354 0.00% 39.86% 0.0000

11 4,366,847 7,136,290 61.19% 39.66% 1.5429 11 0 128,986 0.00% 45.58% 0.0000

12 3,871,994 6,015,758 64.36% 54.93% 1.1718 12 0 136,508 0.00% 51.07% 0.0000

13 2,891,688 5,920,706 48.84% 63.27% 0.7719 13 0 142,356 0.00% 57.06% 0.0000

14 3,444,582 5,216,925 66.03% 70.55% 0.9359 14 3,012 148,626 2.03% 63.61% 0.0319

15 1,844,111 2,045,609 90.15% 85.95% 1.0489 15 3,371 84,141 4.01% 75.86% 0.0528

16 717,934 595,555 120.55% 103.23% 1.1677 16 908 15,963 5.69% 88.54% 0.0642

17 2,353 24,873 9.46% 147.22% 0.0642 17 0 0 0.00% N/A 0.0000

TOTAL 26,957,513 100,533,471 26.81% 26.95% 0.9952 TOTAL 359,672 1,988,493 18.09% 35.48% 0.5098

Page 184: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 15,421                           ‐                                 ‐                         ‐                      ‐                               0%

2002 1,244,708                     ‐                                 ‐                         ‐                      ‐                               0%

2003 5,476,478                     296,438                        ‐                         ‐                      296,438                      5%

2004 13,614,515                   1,095,482                     41,662                  ‐                      1,137,144                   8%

2005 20,918,731                   1,612,939                     87,535                  ‐                      1,700,473                   8%

2006 21,268,132                   2,120,768                     11,883                  ‐                      2,132,652                   10%

2007 20,728,525                   2,979,642                     444,398                ‐                      3,424,039                   17%

2008 20,075,147                   2,628,360                     36,651                  ‐                      2,665,011                   13%

2009 19,525,015                   5,159,902                     488,480                ‐                      5,648,381                   29%

2010 19,317,642                   5,070,217                     426,916                ‐                      5,497,133                   28%

2011 20,265,732                   4,525,629                     638,883                ‐                      5,164,512                   25%

2012 20,416,240                   5,291,371                     2,071,322             ‐                      7,362,693                   36%

2013 20,234,962                   5,474,902                     1,623,147             ‐                      7,098,048                   35%

2014 19,157,031                   5,133,111                     3,366,372             ‐                      8,499,483                   44%

2015 18,351,348                   4,820,443                     3,974,666             ‐                      8,795,108                   48%

2016 18,060,351                   3,452,919                     7,625,144             ‐                      11,078,063                 61%

2017 18,228,357                   909,787                        11,312,286          802,944             13,025,017                 71%

Grand Total 276,898,333                 50,571,909                  32,149,344          802,944             83,524,198                 30%

Pennsylvania Experience

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 ‐                                 ‐                                 ‐                         ‐                      ‐                               0%

2002 20,176                           ‐                                 ‐                         ‐                      ‐                               0%

2003 101,599                        ‐                                 ‐                         ‐                      ‐                               0%

2004 301,180                        352                                ‐                         ‐                      352                              0%

2005 337,199                        ‐                                 ‐                         ‐                      ‐                               0%

2006 303,328                        ‐                                 ‐                         ‐                      ‐                               0%

2007 297,815                        2,776                            ‐                         ‐                      2,776                           1%

2008 295,746                        324                                ‐                         ‐                      324                              0%

2009 282,985                        ‐                                 ‐                         ‐                      ‐                               0%

2010 269,837                        29,664                          ‐                         ‐                      29,664                        11%

2011 265,632                        168,752                        183,630                ‐                      352,382                      133%

2012 261,949                        ‐                                 ‐                         ‐                      ‐                               0%

2013 272,881                        133,646                        91,485                  ‐                      225,130                      83%

2014 272,683                        ‐                                 ‐                         ‐                      ‐                               0%

2015 287,140                        70,699                          155,476                ‐                      226,176                      79%

2016 300,041                        77,568                          104,847                ‐                      182,415                      61%

2017 310,172                        7,367                            182,446                13,890               203,703                      66%

Grand Total 4,180,363                     491,149                        717,883                13,890               1,222,921                   29%

Nationwide Experience, Excluding Florida

Exhibit 2 - TotalPhysicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 2017

Historical Earned Premiums and Incurred Claims

As of December 31, 2017

Policy Forms P103, P104, P106, P107

Page 185: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 3,605                             ‐                                 ‐                         ‐                      ‐                               0%

2002 428,050                        ‐                                 ‐                         ‐                      ‐                               0%

2003 2,005,627                     276,097                        ‐                         ‐                      276,097                      14%

2004 3,543,410                     687,198                        5,106                     ‐                      692,303                      20%

2005 4,213,530                     1,008,017                     ‐                         ‐                      1,008,017                   24%

2006 4,080,668                     831,840                        11,883                  ‐                      843,723                      21%

2007 3,902,981                     1,013,577                     6,612                     ‐                      1,020,189                   26%

2008 3,734,786                     1,499,210                     4,917                     ‐                      1,504,127                   40%

2009 3,592,360                     1,386,719                     ‐                         ‐                      1,386,719                   39%

2010 3,428,052                     1,525,545                     32,022                  ‐                      1,557,567                   45%

2011 3,325,376                     1,818,282                     ‐                         ‐                      1,818,282                   55%

2012 3,218,557                     1,578,346                     141,623                ‐                      1,719,969                   53%

2013 3,170,642                     1,695,584                     162,217                ‐                      1,857,801                   59%

2014 3,061,950                     1,305,780                     371,631                ‐                      1,677,411                   55%

2015 3,072,395                     1,294,196                     500,375                ‐                      1,794,571                   58%

2016 2,931,213                     1,038,715                     1,458,959             ‐                      2,497,674                   85%

2017 2,788,828                     195,130                        1,613,247             146,311             1,954,688                   70%

Grand Total 50,502,031                   17,154,237                  4,308,592             146,311             21,609,140                 43%

Pennsylvania Experience

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 ‐                                 ‐                                 ‐                         ‐                      ‐                               0%

2002 8,142                             ‐                                 ‐                         ‐                      ‐                               0%

2003 29,163                           ‐                                 ‐                         ‐                      ‐                               0%

2004 60,897                           352                                ‐                         ‐                      352                              1%

2005 67,580                           ‐                                 ‐                         ‐                      ‐                               0%

2006 50,252                           ‐                                 ‐                         ‐                      ‐                               0%

2007 47,901                           2,776                            ‐                         ‐                      2,776                           6%

2008 46,290                           324                                ‐                         ‐                      324                              1%

2009 42,161                           ‐                                 ‐                         ‐                      ‐                               0%

2010 42,604                           ‐                                 ‐                         ‐                      ‐                               0%

2011 39,066                           ‐                                 ‐                         ‐                      ‐                               0%

2012 37,580                           ‐                                 ‐                         ‐                      ‐                               0%

2013 39,948                           133,646                        91,485                  ‐                      225,130                      564%

2014 34,349                           ‐                                 ‐                         ‐                      ‐                               0%

2015 36,894                           647                                ‐                         ‐                      647                              2%

2016 37,032                           ‐                                 ‐                         ‐                      ‐                               0%

2017 40,288                           7,035                            94,342                  1,921                 103,298                      256%

Grand Total 660,147                        144,779                        185,826                1,921                 332,527                      50%

Policy Forms P103, P104, P106, P107

Nationwide Experience, Excluding Florida

Exhibit 2 - Limited No InflationPhysicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 2017

Historical Earned Premiums and Incurred Claims

As of December 31, 2017

Page 186: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 1,752                             ‐                                 ‐                         ‐                      ‐                               0%

2002 234,842                        ‐                                 ‐                         ‐                      ‐                               0%

2003 933,379                        5,278                            ‐                         ‐                      5,278                           1%

2004 1,699,381                     261,670                        36,557                  ‐                      298,227                      18%

2005 1,999,171                     412,730                        87,535                  ‐                      500,265                      25%

2006 1,963,308                     380,164                        ‐                         ‐                      380,164                      19%

2007 1,923,074                     801,435                        59,085                  ‐                      860,520                      45%

2008 1,865,620                     421,552                        ‐                         ‐                      421,552                      23%

2009 1,799,087                     717,494                        95,007                  ‐                      812,501                      45%

2010 1,710,547                     731,296                        200,628                ‐                      931,924                      54%

2011 1,588,907                     850,348                        144,304                ‐                      994,652                      63%

2012 1,552,609                     1,280,080                     428,047                ‐                      1,708,127                   110%

2013 1,527,011                     410,227                        131,966                ‐                      542,193                      36%

2014 1,516,821                     518,951                        500,858                ‐                      1,019,809                   67%

2015 1,583,575                     592,548                        663,510                ‐                      1,256,058                   79%

2016 1,565,740                     222,088                        798,936                ‐                      1,021,024                   65%

2017 1,541,922                     116,169                        1,467,596             85,375               1,669,141                   108%

Grand Total 25,006,744                   7,722,031                     4,614,029             85,375               12,421,434                 50%

Pennsylvania Experience

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 ‐                                 ‐                                 ‐                         ‐                      ‐                               0%

2002 3,811                             ‐                                 ‐                         ‐                      ‐                               0%

2003 7,354                             ‐                                 ‐                         ‐                      ‐                               0%

2004 22,456                           ‐                                 ‐                         ‐                      ‐                               0%

2005 20,241                           ‐                                 ‐                         ‐                      ‐                               0%

2006 21,236                           ‐                                 ‐                         ‐                      ‐                               0%

2007 21,733                           ‐                                 ‐                         ‐                      ‐                               0%

2008 21,998                           ‐                                 ‐                         ‐                      ‐                               0%

2009 22,229                           ‐                                 ‐                         ‐                      ‐                               0%

2010 21,456                           29,664                          ‐                         ‐                      29,664                        138%

2011 17,322                           ‐                                 ‐                         ‐                      ‐                               0%

2012 15,438                           ‐                                 ‐                         ‐                      ‐                               0%

2013 15,745                           ‐                                 ‐                         ‐                      ‐                               0%

2014 16,213                           ‐                                 ‐                         ‐                      ‐                               0%

2015 17,563                           ‐                                 ‐                         ‐                      ‐                               0%

2016 19,162                           ‐                                 ‐                         ‐                      ‐                               0%

2017 20,449                           ‐                                 88,104                  2,034                 90,137                        441%

Grand Total 284,408                        29,664                          88,104                  2,034                 119,801                      42%

Policy Forms P103, P104, P106, P107

Nationwide Experience, Excluding Florida

Exhibit 2 - Lifetime No InflationPhysicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 2017

Historical Earned Premiums and Incurred Claims

As of December 31, 2017

Page 187: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 3,018                             ‐                                 ‐                         ‐                      ‐                               0%

2002 264,060                        ‐                                 ‐                         ‐                      ‐                               0%

2003 1,147,855                     11,177                          ‐                         ‐                      11,177                        1%

2004 3,858,060                     120,040                        ‐                         ‐                      120,040                      3%

2005 7,064,817                     92,686                          ‐                         ‐                      92,686                        1%

2006 7,492,202                     631,981                        ‐                         ‐                      631,981                      8%

2007 7,324,389                     213,841                        ‐                         ‐                      213,841                      3%

2008 7,138,590                     681,540                        ‐                         ‐                      681,540                      10%

2009 6,963,146                     1,333,266                     138,212                ‐                      1,471,478                   21%

2010 6,972,631                     1,472,424                     ‐                         ‐                      1,472,424                   21%

2011 7,496,181                     736,430                        ‐                         ‐                      736,430                      10%

2012 7,658,498                     1,329,046                     150,062                ‐                      1,479,107                   19%

2013 7,697,594                     1,805,593                     209,067                ‐                      2,014,660                   26%

2014 7,569,028                     2,279,628                     710,231                ‐                      2,989,860                   40%

2015 7,442,899                     1,545,426                     1,245,794             ‐                      2,791,219                   38%

2016 7,329,408                     1,121,551                     2,315,415             ‐                      3,436,966                   47%

2017 7,433,712                     378,279                        3,738,035             276,385             4,392,699                   59%

Grand Total 100,856,087                 13,752,910                  8,506,815             276,385             22,536,110                 22%

Pennsylvania Experience

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 ‐                                 ‐                                 ‐                         ‐                      ‐                               0%

2002 3,200                             ‐                                 ‐                         ‐                      ‐                               0%

2003 25,108                           ‐                                 ‐                         ‐                      ‐                               0%

2004 82,656                           ‐                                 ‐                         ‐                      ‐                               0%

2005 97,283                           ‐                                 ‐                         ‐                      ‐                               0%

2006 87,040                           ‐                                 ‐                         ‐                      ‐                               0%

2007 84,068                           ‐                                 ‐                         ‐                      ‐                               0%

2008 83,553                           ‐                                 ‐                         ‐                      ‐                               0%

2009 79,122                           ‐                                 ‐                         ‐                      ‐                               0%

2010 78,042                           ‐                                 ‐                         ‐                      ‐                               0%

2011 80,279                           ‐                                 ‐                         ‐                      ‐                               0%

2012 84,729                           ‐                                 ‐                         ‐                      ‐                               0%

2013 89,510                           ‐                                 ‐                         ‐                      ‐                               0%

2014 90,564                           ‐                                 ‐                         ‐                      ‐                               0%

2015 93,202                           70,053                          155,476                ‐                      225,529                      242%

2016 95,279                           77,568                          104,847                ‐                      182,415                      191%

2017 93,679                           ‐                                 ‐                         2,977                 2,977                           3%

Grand Total 1,247,314                     147,621                        260,323                2,977                 410,921                      33%

Policy Forms P103, P104, P106, P107

Nationwide Experience, Excluding Florida

Exhibit 2 - Limited InflationPhysicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 2017

Historical Earned Premiums and Incurred Claims

As of December 31, 2017

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CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 7,046                             ‐                                 ‐                         ‐                      ‐                               0%

2002 317,757                        ‐                                 ‐                         ‐                      ‐                               0%

2003 1,389,618                     3,886                            ‐                         ‐                      3,886                           0%

2004 4,513,664                     26,574                          ‐                         ‐                      26,574                        1%

2005 7,641,212                     99,505                          ‐                         ‐                      99,505                        1%

2006 7,731,954                     276,783                        ‐                         ‐                      276,783                      4%

2007 7,578,081                     950,788                        378,701                ‐                      1,329,489                   18%

2008 7,336,151                     26,058                          31,734                  ‐                      57,792                        1%

2009 7,170,422                     1,722,422                     255,261                ‐                      1,977,683                   28%

2010 7,206,412                     1,340,951                     194,266                ‐                      1,535,217                   21%

2011 7,855,269                     1,120,568                     494,579                ‐                      1,615,147                   21%

2012 7,986,575                     1,103,899                     1,351,591             ‐                      2,455,490                   31%

2013 7,839,715                     1,563,498                     1,119,896             ‐                      2,683,394                   34%

2014 7,009,231                     1,028,752                     1,783,652             ‐                      2,812,404                   40%

2015 6,252,480                     1,388,273                     1,564,987             ‐                      2,953,260                   47%

2016 6,233,989                     1,070,565                     3,051,834             ‐                      4,122,400                   66%

2017 6,463,895                     220,208                        4,493,408             294,873             5,008,489                   77%

Grand Total 100,533,471                 11,942,732                  14,719,909          294,873             26,957,513                 27%

Pennsylvania Experience

CALENDAR YEAR EARNED PREMIUM PAID ON INCURRED CLAIM RESERVE IBNR RESERVE INCURRED CLAIMS INCURRED LOSS RATIO

2001 ‐                                 ‐                                 ‐                         ‐                      ‐                               0%

2002 5,024                             ‐                                 ‐                         ‐                      ‐                               0%

2003 39,974                           ‐                                 ‐                         ‐                      ‐                               0%

2004 135,169                        ‐                                 ‐                         ‐                      ‐                               0%

2005 152,094                        ‐                                 ‐                         ‐                      ‐                               0%

2006 144,799                        ‐                                 ‐                         ‐                      ‐                               0%

2007 144,113                        ‐                                 ‐                         ‐                      ‐                               0%

2008 143,905                        ‐                                 ‐                         ‐                      ‐                               0%

2009 139,473                        ‐                                 ‐                         ‐                      ‐                               0%

2010 127,735                        ‐                                 ‐                         ‐                      ‐                               0%

2011 128,965                        168,752                        183,630                ‐                      352,382                      273%

2012 124,203                        ‐                                 ‐                         ‐                      ‐                               0%

2013 127,679                        ‐                                 ‐                         ‐                      ‐                               0%

2014 131,556                        ‐                                 ‐                         ‐                      ‐                               0%

2015 139,481                        ‐                                 ‐                         ‐                      ‐                               0%

2016 148,568                        ‐                                 ‐                         ‐                      ‐                               0%

2017 155,756                        333                                ‐                         6,958                 7,291                           5%

Grand Total 1,988,493                     169,085                        183,630                6,958                 359,672                      18%

Policy Forms P103, P104, P106, P107

Nationwide Experience, Excluding Florida

Exhibit 2 - Lifetime InflationPhysicians Mutual Insurance Company

Actuarial Justification of Long-Term Care Premium Rates, December 2017

Historical Earned Premiums and Incurred Claims

As of December 31, 2017

Page 189: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

N228‐N5 NE

Physicians Mutual Insurance Company Health Customer Service PO Box 3313 Omaha, NE 68103-0313 1.866.473.7642

Date NAME ADDRESS 1 ADDRESS 2 CITY STATE ZIP

Re: Long-Term Care Insurance Premium Policy No. [XXX-XXX-XXX1]

Dear [Name2]:

Thank you for trusting Physicians Mutual Insurance Company to serve your insurance needs. This letter is to notify you the premium rate for your Long-Term Care policy will increase with your next renewal notice. We understand this increase may be a challenge for some of our customers. Our commitment to you is to do what is necessary to make certain your benefits will always be there for you and your family.

Like many Long-Term Care insurance providers, Physicians Mutual continues to experience higher than projected costs associated with Long-Term Care. These higher than projected costs make a premium increase necessary. You have not been singled out for this increase. It applies to all policies like yours in the state where you purchased your coverage.

Based on your current policy benefits, your [Modal3] premium will be affected as shown in the chart below:

Effective Date Current Premium Amount

(prior to rate increase) New Premium Amount

(after rate increase) [Date7] [$XX.XX4] [$XX.XX5] [Date16] [$XX.XX17] [$XX.XX18] [Date19] [$XX.XX20] [$XX.XX21]

[Employee discount6] [Billing statement8] To keep your policy exactly as it is, please pay the new premium by the due date. If you have made any changes to your policy after the date of this letter, they may not be reflected in your new premium listed above.

To help you manage this premium increase, there are several options available to you. Please note that all options available may not be of equal value. Before making any changes to your coverage, we encourage you to contact a member of our Long-Term Care team at 1-866-473-7642 to discuss your individual options.

Page 190: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

[NAME2] -2- DATEPolicy No. [XXX-XXX-XXX1]

Options available to you:

You may be able to make a change to your policy (such as reducing benefits, increasingthe elimination period or removing riders), which can lower this new premium amount.

[You may choose a paid-up benefit where no more premiums are due, but your benefitswill be reduced. This option must be selected within 120 days of the rate increaseeffective date.10]

[You may choose a paid-up benefit where no more premiums are due. This option willcontinue to provide the same [Benefits9] benefit you have now, but your lifetimemaximum benefit will be reduced.11]

[Please note that removing your inflation protection benefit rider or electing a paid-up benefit may result in the loss of partnership status for your policy.15]

[You also have an option to increase your coverage 5 percent each year to help keep up with rising costs. This option is available to you every year under your Inflation Protection Rider and would take effect on your policy anniversary date. It will increase your premium from [$XXX.XX12] to [$XXX.XX13]. This option must be selected within 30 days of your policy anniversary date.14]

You should keep in mind your premium rate may need to be increased again in the future. Your Long-Term Care insurance policy is guaranteed renewable, which means it cannot be canceled as long as premium payments are made in a timely manner.

Once again, if you have any questions, please call us at 1-866-473-7642. A question and answer document has been attached for your reference.

Sincerely,

Bernie Cameli Manager, Customer Service Physicians Mutual Insurance Company

Enc.

Page 191: Filing at a GlanceSERFF Tracking #: PHYS-131476897 State Tracking #: PHYS-131476897 Company Tracking #: State: Pennsylvania Filing Company: Physicians Mutual Insurance Company TOI/Sub-TOI:

Letter Variables: N228-N5 NE 1. XXX-XXX-XXX

Policy number

2. Name

Policyowner first and last name

3. Modal

Payment type:

Monthly

Automatic Bank Withdrawal

Quarterly

Semi-annual

Annual

Payroll deduction

4. $XXX.XX

Current premium amount

5. $XXX.XX

New premium amount

6. Employee discount

One increase:

Please note, this amount does not include your employee or employee family member discount, which does still apply.

Multiple increases:

Please note, these amounts do not include your employee or employee family member discount, which does still apply.

7. Date

Month, day, year of the policy’s anniversary date (MM DD, YYYY)

8. Billing statement

Monthly: The new amount will be shown in your next payment packet.

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Monthly with employee discount: The new amount with the discount will be shown in your next payment packet.

ABW: The new amount will be reflected in your bank statement

ABW with employee discount: The new amount with the discount will be reflected in your bank statement.

Payroll: The new amount will be deducted from your paycheck and include your employee discount.

All other payment options:

The new amount will be shown in your next billing statement.

All other payment options with employee discount: The new amount with the discount will be shown in your next billing statement.

9. Benefits

Benefit type: Monthly Daily

10. Variable language

Insert if policy has Contingent Nonforfeiture Option 11. Optional paragraph

Insert if policy has a Shortened Benefit Nonforfeiture Rider

12. $XXX.XX

Current premium amount plus rider cost

13. $XXX.XX

New premium amount plus rider cost

14. Optional paragraph

Insert if customer has GPO inflation option

15. Optional paragraph

Insert if customer has a Partnership policy

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RATE INCREASE CHART: N228-N5 NE

Second rate increase

16. Date

Month, day, year of effective date of second rate increase 17. $XXX.XX

Current premium amount at time of second rate increase 18. $XXX.XX

New premium amount after second rate increase

Third rate increase

19. Date

Month, day, year of effective date of third rate increase 20. $XXX.XX

Current premium amount at time of third rate increase 21. $XXX.XX

New premium amount after third rate increase

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PM2452 N5 1 of 2 Rev. 0915

Physicians Mutual Insurance Company Health Customer Service PO Box 3313 Omaha, NE 68103-0313 1.866.473.7642

Coverage Change for Long-Term Care Policies

Policy No. [XXX-XXX-XXX1] Date: [xxxxxxxxxxxxx3] Policyowner’s Name: [Name2]

Instructions Before completing this form, please call us at 1-866-473-7642 so we can explain all your options in detail, including what your new premium rate would be and how your benefits would be affected. If you decide to make changes, please complete, sign and date this form. Then, mail the form back to us in the postage-paid envelope enclosed by the required response date. If you do not want to make a change, no action is required from you.

Coverage Options Please check the change(s) you would like to make.

Reduce Your Coverage This will lower your premium and the reductions can be made at any time.

Reduce my [Benefits4] Benefit from $ to $ .

Reduce my Benefit Period from to years.

Increase my Elimination Period from days to days.

Cancel these riders .

[Contingent Benefit Upon Lapse Paid-Up Option This eliminates future premiums and must be selected within the 120 days of the rate increase effective date.

Activate my paid-up benefit option.5]

[Contingent Benefit Upon Lapse Paid-Up Option This eliminates future premiums and must be selected within the 120 days of the rate increase effective date.

Activate my paid-up benefit option which reduces my maximum benefit amount while maintaining my current monthly benefit amount (Option 1).

Activate my paid-up benefit option which reduces my current monthly benefit amount while maintaining my current benefit period (Option 2). 6]

[Shortened Benefit Period Paid-Up Option This eliminates future premiums and can be selected at any time.

Activate my paid-up benefit option.7]

[Increase Your Coverage This raises your premium and must be selected within 30 days of the policy anniversary date.

Increase my benefits (as shown below) to protect against inflation, which will change the premium from [$999.999] to [$999.9910].

Benefit Type Current Benefit Amount Increased Benefit Amount

Facility Care [$99,999.9911] [$99,999.9912]

Home and Community Care [$99,999.9913] [$99,999.9914]

8]

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PM2452 N5 2 of 2 Rev. 0915

Signature and Acknowledgment

I understand the policy change(s) I have selected above. I agree any change(s) will become effective on the date set by Physicians Mutual Insurance Company following receipt of this request. X

Policyowner’s Signature Date

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PM2452 N5 Rev. 0915

Coverage Change Form Variables

1. XXX-XXX-XXX Policy number

2. Name Policyowner first and last name

3. Date

4. Benefits Benefit type:

Monthly Daily

5. Contingent Nonforfeiture on Lapse Section. If policy has a Contingent Nonforfeiture Option for Lifetime Pay Policies

6. Contingent Nonforfeiture on Lapse Section. If policy has a Contingent Nonforfeiture Option for Limited Pay Policies

7. Shortened Benefit Period Section. If policy has a Shortened Benefit Nonforfeiture Option

8. GPO Section If policy has a Guaranteed Purchase Option

9. $999.99 New premium amount (includes rate increase)

10. $999.99 New premium amount plus rider cost

11. $99,999.99 Current facility care benefit amount

12. $99,999.99 Current facility care benefit amount plus percentage of inflation protection increase

13. $99,999.99 Current home and community care benefit amount

14. $99,999.99 Current home and community care benefit amount plus percentage of inflation protection increase