Ariz. Admin. Code § R20-6-604.08 - Use of Prima Facie Rates; Rate Deviations
A. Use of rates greater than prima facie
rates. An insurer may file for approval and use of any deviated rates that are
higher than the prima facie rates referred to in
R20-6-604.04 and
R20-6-604.05 as prescribed in A.R.S. §
20-1610.
1. The deviated rates shall meet the minimum
loss ratio standards and other requirements prescribed by
R20-6-604.02.
2. The filing shall specify the accounts to
which the rates apply.
3. The rates
may be:
a. Applied uniformly to all accounts
of the insurer; or
b. Applied on an
equitable basis approved by the Director to accounts of the insurer for which
the insurer's experience has been less favorable than expected.
B. Approval period of
deviated rates. An insurer may use a deviated rate for the same period of time
as the experience period used to establish the rate, not to exceed a period of
three years from the date of approval. An insurer may file for a new deviated
rate before the end of the approval period, but not more often than once in any
12 month period.
C. Approval is
non-transferable. The Director's approval of a deviated rate is not
transferable to another insurer. If an insurer acquires an account for which
another insurer obtained a deviated rate, the successor insurer may not charge
the deviated rate without obtaining approval for the deviated rate as
prescribed in subsection (B).
D.
Use of rates lower than filed rates. An insurer may use a rate that is less
than its filed rate without notice to the Director.
Notes
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