211 CMR 79.06 - Suspension or Disapproval of Voluntary Market Rate Filings and Rates

Current through Register 1466, April 1, 2022

(1) Suspension of a Rate Filing. The Commissioner may suspend the operation of any Rate Filing pursuant to M.G.L. c. 175E, ยง 7 for not more than 45 days after its effective date. The Commissioner either shall approve such filing or issue an order disapproving it and specifying the grounds for the disapproval within such 45-day period.
(2) Implementation of Suspended Rate Filing. An Insurer may implement a suspended Rate Filing that has not been disapproved by the Commissioner on the suspended filing's effective date provided:
(a) The Insurer submits a written agreement to the Commissioner stating that it will adjust the Premiums, including interest at the rate of 8% per annum, of all of its policies that are affected by the filing from the respective effective dates in accordance with the Commissioner's final determination regarding the suspended Rate Filing; and
(b) The Insurer posts sufficient bond with the Commissioner in a form and amount deemed satisfactory to the Commissioner. The Division's approval of the form and the amount of such bond shall be in writing.
(3) Suspension of a Rate.
(a) The Commissioner may order the suspension, prospectively, of a Rate used by an Insurer and re-impose the Rate in effect for that Insurer immediately prior to the suspended Rate. In such event, the Commissioner shall hold a hearing within 15 days after such order, unless the Insurer waives its right to a hearing.
(b) The Commissioner shall make a determination as to whether to re-impose or disapprove the suspended Rate within 15 days after the close of the hearing. If the Commissioner disapproves a suspended Rate, the disapproval shall take effect not less than 15 days after the issuance of the order, and the Rate in effect immediately prior to the suspended Rate will remain in effect for a period no longer than six months.
(c) If the Insurer submits a new Rate Filing during this six-month period and the new filing is approved by the Commissioner, such Rate will go into effect.
(d) If the Insurer fails to submit a new Rate Filing during, or at the expiration, of this six-month period, no Rate will be in effect and the Insurer will be prohibited from issuing new or renewal policies in the private passenger motor vehicle insurance market until the Insurer submits a Rate Filing in accordance with 211 CMR 79.05 that is approved by the Commissioner.
(4) Disapproval of a Rate.
(a) If the Commissioner determines after a hearing conducted pursuant to 211 CMR 79.12 that any Classification Plan, rule or Rates, rating plan or modification of any of the foregoing fail to comply with the relevant provisions of M.G.L. c. 175A, M.G.L. c. 175E or 211 CMR 79.00, or violates public policy, the Commissioner shall order the disapproval of such Classification Plan, rule, Rate, Rating plan or modification, and with respect to any such disapproved Rate, the order may include a provision for a Premium adjustment.
(b) If the Commissioner disapproves such Rate, the disapproval shall take effect not less than 15 days after the issuance of the order and the Rate in effect immediately prior to the disapproved Rate will remain in effect for the Insurer for a period no longer than six months.
(c) If the Insurer submits a new Rate Filing during this six-month period that the Commissioner approves, such Rate will go into effect.
(d) If the Insurer fails to submit a new Rate Filing during, or at the expiration of this six-month period, no Rate will be in effect and the Insurer will be prohibited from issuing new or renewal policies in the private passenger motor vehicle insurance market until the Insurer submits a Rate Filing in accordance with 211 CMR 79.05 that is approved by the Commissioner.

Notes

211 CMR 79.06
Amended by Mass Register Issue 1355, eff. 12/29/2017.

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