28 Tex. Admin. Code § 3.5601 - Deviation by Case Allowed
Two types of rate deviation are allowed, automatic deviation and approved deviation as defined in § 3.5002 of this title (relating to Definitions).
(1) Automatic Deviation.
An insurer electing to deviate from the presumptive premium rate established by
the commissioner shall file with the commissioner the insurer's proposed rate
for credit life and credit accident and health insurance. On filing the rate
with the commissioner, the insurer may use the filed rate until the insurer
elects to file a different rate. Except as provided in paragraph (2) of this
section, an insurer may not use a rate that is more than 30% higher or 30%
lower than the presumptive premium rate.
(2) Approved Deviation by Case.
Notwithstanding the determination by the Commissioner of Insurance of
presumptive premium rates which are reasonable in relation to the benefits of a
policy providing the coverage to which the rates are applicable, an insurer who
has experienced excessive loss ratios or who fails to develop the minimum loss
ratio as defined in §
3.5202 of this title (relating to
Reasonable Relation of Benefits to Premiums for Approved Deviations), for a
case consisting of a single account or combination of accounts, as defined in §
3.5002 of this title, will be
permitted, at its own request, or may be required by the commissioner, to
adjust the premium rate or premium rate schedule for such case in accordance
with the deviation procedures set out in this subchapter. An approved deviation
request shall be presented with form CI-DRF and §3.5602 of this division
(relating to Request for an Approved Deviated Premium Rate).
(3) The commissioner may disapprove a request
for an approved deviated rate on the grounds that the rate is not actuarially
justified, or is unjust, unreasonable, excessive or inadequate. A rate is
excessive if it is unreasonably high for the coverage provided and a reasonable
degree of competition does not exist with respect to the classification to
which the rate would be applicable. A rate is inadequate if the rate is
insufficient to sustain projected losses and expenses, or the rate
substantially impairs, or is likely to substantially impair, competition with
respect to the sale of the product.
(4) The insurer may use the rate if the
commissioner does not disapprove it before the 60th day after the date the
insurer filed the rate.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.