(1) In order to determine the aggregate premium to be charged to new and renewal policies for the fiscal year that begins on the next July 1, the State Fund actuary shall evaluate the adequacy of the projected overall rate level for the fiscal year of the State Fund. The projected overall rate level must be sufficient to cover:

(a) the value of claims, as determined by actuarial analysis, expected to be incurred as a direct result of covered accidents during the following fiscal year of the State Fund;

(b) operational and administrative expenses, claims adjustment expense related to covered claims, and other expenses required to operate the State Fund for the fiscal year; and

(c) an amount sufficient to maintain appropriate contingency reserves and policyholder surplus.

(2) In determining the projected revenue requirements for the following State Fund fiscal year, the State Fund actuary shall consider:

(a) the present financial condition of the State Fund;

(b) trends in the number and cost of accidents;

(c) investment yield on underwriting cash flow;

(d) recent court decisions that may affect the liability of the State Fund;

(e) legislative changes in the statutory benefit scheme;

(f) factors relating to maintenance of the policy base of the State Fund;

(g) the anticipated changes in covered payroll during the year for which the premium rates will be in effect; and

(h) other factors considered relevant in recommending an accurate projection of an overall rate level adjustment.