= Two-year premium-loss claim threshold
{title2=$b\sum_{r=1}^2(d_{i_r^0}-d_{i_r^1})$}
Let $b$ be the undiscounted annual premium and $d_i$ the discount fraction at level $i$. Compare the next two levels $i_r^0$ after no current claim with $i_r^1$ after a current claim, assuming no later accidents. Their total additional premium is the displayed threshold. A repair cost above it makes a claim advantageous under this two-year rule. For discounts $0,\alpha,\beta$ and one-level moves with reflecting endpoints, the thresholds at levels one, two, and three are respectively $b\beta$, $b(2\beta-\alpha)$, and $b(\beta-\alpha)$. The premium scale must be specified or fixed as the monetary unit.
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