{
      "tool_id": "art-255-compute-lcm-rate-derivation",
      "tool_version": "1.0.0",
      "display_name": "LCM Rate Derivation Calculator",
      "mcp_name": "compute_lcm_rate_derivation",
      "mandate_type": "analytics_mandate",
      "wave": 43,
      "gpu": false,
      "url": "https://ainumbers.co/chaingraph/art-255-compute-lcm-rate-derivation.html",
      "description": "Computes the Loss Cost Multiplier (LCM) and indicated insurance rate from user-supplied loss costs and expense/profit loadings. LCM = 1 / (1 - LAE% - fixed_exp% - variable_exp% - profit%). Indicated rate = loss_cost * LCM. Supports credibility-weighted blending of user's own loss costs with a complement. PROPRIETARY-DATA: this kernel performs LCM decomposition arithmetic ONLY on user-supplied loss costs -- it NEVER embeds, redistributes, or references ISO/Verisk advisory loss cost rate pages (Verisk-proprietary). ASOP 25 compliant. ZERO PII: aggregate rate components only.",
      "input_schema_ref": "chaingraph/art-255-compute-lcm-rate-derivation.html#manifest",
      "consumes": [],
      "feeds": [],
      "status": "live",
      "conformance_fixtures": true,
      "compute_capability": "server",
      "compute_images": [{"system":"sha256-source","image_id":"sha256:d206ed051fd45134f40a3c4a1c1d7ff696243aa84d005225fe8c3d4e9084dca4","valid_from":"2026-07-10"},{"system":"risc0","image_id":"sha256:a1a0bc89b5b1febaeda3519f6dbade0fa5ac16beeb143c4e1b01689573567bc6","valid_from":"2026-07-05"}],
      "export_capability": [
        "json"
      ],
      "compute_proof": {
        "type": "ZkVmReceipt",
        "system": "risc0",
        "receiptFormat": "groth16-bn254",
        "imageId": "sha256:a1a0bc89b5b1febaeda3519f6dbade0fa5ac16beeb143c4e1b01689573567bc6",
        "seal": "Gb6gAKeW8WpwszYpZS3tqq7mYar8+c7XqlzxJK1THmcj80uElhfcV095hqnazFERb6zaX+Y4rkjNeqz09STx+wqUpkej+azBHefXZfsxqnr+1+sFEhpDjg1rzZ1RHbElGE4IKvYD62QDAkCu+mkXry2v9SdiG9P1uOayuWUOVu0N0iV948BwbtaK+XsLgYKbEWjT+w63PjozXYDqdf+c9SyW456T98xtNXXxT12wDR4qcusYSB69WL5byC/HyyFpHMRLnIfq8LYsR1AXAssVw+HSNku9fS6/jjTOoyboXUYcX/JtK0YWz46AzriBSRPMqXBk/hdLM40mQyCrrAVHIg==",
        "journal": {
          "chaingraph_version": "0.4.0",
          "kernel_digest": "sha256:d206ed051fd45134f40a3c4a1c1d7ff696243aa84d005225fe8c3d4e9084dca4",
          "output": {
            "complement_loss_cost": 120,
            "credibility_weighted_loss_cost": 120,
            "credibility_z": 1,
            "current_rate": null,
            "denominator_valid": true,
            "fixed_expense_pct": 0.08,
            "indicated_rate": 184.62,
            "issues": [],
            "lae_pct": 0.12,
            "lcm": 1.5385,
            "lcm_denominator": 0.65,
            "not_legal_advice": "Not legal or actuarial advice. Rate filings require certification by a qualified actuary and approval by the applicable state insurance department.",
            "pii_note": "ZERO PII: aggregate rate components only. No policyholder, premium, or personal data enters this kernel.",
            "profit_pct": 0.05,
            "proprietary_data_notice": "USER-SUPPLIED LOSS COSTS ONLY. This kernel performs LCM decomposition arithmetic exclusively. It does not embed, store, or redistribute ISO/Verisk advisory loss costs or any proprietary rate-bureau filing. Ensure your pure_loss_cost input is approved and non-proprietary.",
            "pure_loss_cost": 120,
            "pure_loss_cost_loaded": 184.62,
            "rate_change_direction": null,
            "rate_change_pct": null,
            "regulatory_basis": "ASOP 25 (Premium Calculations); state rate filing regulations (SERFF). LCM formula: rate = loss_cost × LCM; LCM = 1 / (1 - LAE% - fixed_exp% - variable_exp% - profit%). Rate adequacy review required by qualified actuary.",
            "table_source": "Actuarial Standard of Practice No. 25 (Premium Calculations); Willis Towers Watson Rate Adequacy methodology; user-supplied loss costs only — no ISO/Verisk advisory rates embedded.",
            "table_version": "LCM-DECOMPOSITION-MATH-V1.0-2025",
            "total_loading": 0.35,
            "variable_exp_pct": 0.1
          }
        }
      },
      "compute_proof_ready": "ready"
    }