With the increasing emphasis of performance-based earthquake engineering (PBEE) in the engineering community, several investigations have been presented outlining simplified approaches suitable for performance-based seismic design (PBSD). Central to most of these PBSD approaches is the use of closed-form analytical solutions to the probabilistic integral equations representing the rate of exceedance of key performance measures. Situations where such closed-form solutions are not appropriate primarily relate to the problem of extrapolation outside of the region in which parameters of the closed-form solution are fit. This study presents a critical review of the closed form solution for the annual rate of structural collapse. The closed form solution requires the assumptions of lognormality of the collapse fragility and power model form of the ground motion hazard, of which the latter is more significant regarding the error of the closed-form solution. Via a parametric study, the key variables contributing to the error between the closed-form solution and solution via numerical integration are illustrated. As these key variables can not be easily measured it casts doubt on the use of such closed-form solutions in future PBSD, especially considering the simple and efficient nature of using direct numerical integration to obtain the solution.