= Two-year no-claims threshold with reset to zero
{title2=$a_0=\beta C,\quad a_\alpha=a_\beta=(2\beta-\alpha)C$}
In a <no claims discount system> with discounts $0,\alpha,\beta$, a reported claim resets next year's discount to zero. With no later accidents, the next two premiums after reporting are $C+(1-\alpha)C$. At the zero level, not reporting instead gives $(1-\alpha)C+(1-\beta)C$; at either other level it gives $2(1-\beta)C$. Their differences give the displayed repair-cost thresholds. A fully reimbursed loss above its threshold should be reported under this undiscounted two-year rule. Current premiums cancel. Different thresholds generally produce state-dependent submitted-claim probabilities, even with a common accident mechanism.
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