(a) The excess profit threshold shall be 21 percent.
(b) The department has followed the general approach of its consultant's statistical analysis but, on a judgment basis, has modified the excess profit threshold of 22.4 percent that was recommended by the consultant. As explained below, the department has selected a lower excess profit threshold of 21 percent, rounded to the nearest full percentage, which is based on net worth, the assumption of the normal distribution, and a probability level which differs from that selected by the consultant.
(c) See section 166-2.5 of this Part for discussion of this section.