All rate filings
that have been identified as "potentially unreasonable" in accordance with the
ACA and are subject to Section
of this Rule must include Part II
of the ACA Preliminary Justification for the rate increase, in addition to
Parts I and III required by Section
. Part II is a simple and brief
narrative describing the data provided in Part I for any product(s) within the
single risk pool which have rate increases subject to review, and the
assumptions used to develop the rate increase, including an explanation of the
most significant factors causing the rate increase.
All rate filings that have been
identified as "potentially unreasonable" in accordance with the ACA and which
relate to transitional coverage as defined in Section
must include the ACA Preliminary
Justification, Part I rate increase summary (a form that summarizes the data
used to determine the rate increase) and Part II (the written explanation of
the rate increase described in Subsection A).
B. A rate increase will be determined to be
unreasonable if it is excessive or unfairly discriminatory, or if the carrier
provides data or documentation that is incomplete, inadequate, or otherwise
does not provide a basis to determine whether the increase is reasonable, and
fails to correct the deficiency within a reasonable time in response to a
request by the Bureau.
group rates for credible blocks filed pursuant to Subsection
implemented regardless of whether they are determined to result in an
unreasonable rate increase.
1. A carrier may
request a preliminary determination of reasonableness and may modify the filing
to avoid implementing an unreasonable rate increase.
2. A carrier requesting such a preliminary
determination should specify the date by which the determination is needed and
should submit the filing at least 60 days before the preliminary determination
is needed. The Bureau may or may not be able to honor requests for a
determination in less than 60 days.