Utah Admin. Code R590-225-8 - Procedures for Rate and Supplementary Information Filings
(1) Rates and supplementary information are
use and file filings.
(a) Title and workers
compensation rates and supplementary information are file before use
filings.
(b) A service contract
provider, a bail bond agency, or a guaranteed asset protection waiver provider
is exempt from this section.
(c) A
rate filing for private passenger auto, homeowners, or workers compensation TOI
shall include a certification signed by a qualified actuary stating that the
rates are not inadequate, excessive, or unfairly discriminatory under
Subsection
31A-19a-201(1).
(2) Filings by an RSO authorized by an
insurer to make a prospective loss cost, supplementary information filing, or
both, are not required if the insurer implements the filing submitted by the
RSO.
(a) If the effective date is delayed, the
filing is not adopted, or the filing is altered, a filing is
required.
(b) A filing shall be
received by the department within 30 days of the effective date established by
the RSO.
(c) Copies of an RSO's
manual pages are not required to be filed when referenced in an RSO
filing.
(3)
(a) If an RSO is not authorized to file the
prospective loss cost, supplementary rating information, or both, on an
insurer's behalf, the insurer:
(a)
shall include a letter stating that the insurer adopts the RSO prospective loss
cost, supplementary rating information filing, or both, for the insurer's
use.
(b) A filer shall file copies
of any RSO manual pages as if they are the insurer's own and provide the
insurer's actuarial justification.
(4) A "Me Too" filing, referencing a filing
submitted by another licensee, is not permitted.
(5) If a filing is for more than one insurer
and the supporting data and manual pages are identical for each insurer
included in the filing, only one copy of the supporting data and manual pages
shall be submitted.
(a) Rate and supplementary
information filings shall be supported and justified by each insurer.
(b) A justification shall include:
(i) a submission of each factor used in
determining the initial supplementary information and rates or changes in
existing supplementary information and rates; and
(ii) a complete explanation of each factor
and how it is used.
(c)
Underwriting criteria are not required unless they directly affect the rating
of the policy.
(d) Underwriting
criteria used to differentiate between rating tiers is required.
(6)
(a) When submitting a filing for a rating
plan, a rating modification plan, or a credit and debit plan, an insurer shall
include:
(i) a statement identifying the
arithmetic process used and whether factors will be added or multiplied when
applying them to base rates; and
(ii) a justification for the method
used.
(b) A filing shall
be rejected as incomplete if it does not provide the information in Subsection
(6).
(7) Utah and
countrywide statistical data for the latest three years available shall be
submitted with each filing.
(a) The data shall
include:
(i) earned premiums;
(ii) incurred losses;
(iii) loss ratios;
(iv) establishment of expense factors;
and
(v) expected loss
ratios.
(b) Calculations
used in establishing rates from loss experience shall be shown, including the
establishment of trend factors and loss development factors.
(c) If the information in Subsection (7) is
not available, a detailed explanation of the reason the information is not
available shall be provided with the filing.
(8) Prospective loss cost and loss cost
multiplier.
(a) An individual insurer
adjustment to the RSO prospective loss cost must be made as part of the
calculation of the loss cost multiplier and must be included in the Utah
Insurer Loss Cost Multiplier Filing Forms.
(b) This form allows for the inclusion of an
individual insurer modification of the RSO prospective loss
cost.
(9) Procedures for
Reference Filings to Advisory Prospective Loss Cost.
(a) An RSO develops and files a reference
filing containing advisory prospective loss cost and supporting actuarial and
statistical data.
(b) Each insurer
must individually determine the rates it will file and the effective date of
any rate changes.
(c) If an insurer
that is a member, subscriber, or service purchaser of an RSO that uses the
prospective loss cost in an RSO reference filing in support of its own filing,
the insurer shall make a filing using the Utah Insurer Loss Cost Multiplier
Filing Forms.
(d) The insurer's
filed rates are a combination of the RSO's prospective loss cost and the loss
cost multiplier contained in the Utah Insurer Loss Cost Multiplier Filing
Forms.
(e) An insurer may file a
modification of the prospective loss cost in the RSO reference filing based on
its own anticipated experience.
(f)
An actuarial justification is required for a modification, upward or downward,
of the prospective loss cost in the reference filing.
(g) An insurer may request to have its loss
cost adjustments remain on file and reference all subsequent RSO prospective
loss cost reference filings.
(i) Upon receipt
of a subsequent RSO reference filing, the insurer's filed rates are a
combination of the RSO's prospective loss cost and the loss cost adjustments
contained in the Utah Insurer Loss Cost Multiplier Filing Forms on file and are
effective on the effective date of the prospective loss cost.
(ii) The insurer need not file any further
filings.
(h) If a filer
wants to have its filed loss cost adjustments remain on file, but intends to
delay, modify, or not adopt a particular RSO's reference filing, the filer
shall make an appropriate filing.
(i) An insurer's filed loss cost adjustments
shall remain in effect until the filer withdraws the filing or files a revised
Utah Insurer Loss Cost Multiplier Filing Form.
(j) A filer may file other relevant
information.
(k) If an insurer
proposes to use minimum premiums, it must file those minimum
premiums.
(10)
Supplementary Rate Information.
(a) An RSO
filing containing a revision of rules, relativities, and supplementary rate
information shall include:
(i) policy-writing
rules;
(ii) rating plans;
(iii) classification codes and descriptions;
and
(iv) territory codes,
descriptions, and rules, including increased limits factors, classification
relativities, or similar factors.
(b) A supplementary rate information filing
is made by an RSO on behalf of an insurer that authorizes the RSO to file
rules, relativities, and supplementary rating information on its
behalf.
(c) An RSO may print and
distribute a manual of rules, relativities, and supplementary rating
information.
(d) If an insurer
authorizes an RSO to file on its behalf and the insurer decides to use the
revisions and the RSO's effective date, the insurer need not file any further
filings.
(e) If an insurer
authorizes an RSO to file on its behalf and the insurer decides to use the
revisions as filed, and with a different effective date, the insurer shall
notify the commissioner of the insurer's effective date within 30 days of the
RSO's effective date.
(f) If an
insurer authorizes an RSO to file on its behalf, and the insurer decides not to
use the revision, the insurer shall notify the commissioner within 30 days of
the RSO's effective date.
(g) If an
insurer authorizes an RSO to file on its behalf, and the insurer decides to use
the revision with modification, the insurer must file the modification
specifying the basis for the modification and the insurer's effective date
within 30 days of the RSO's effective date.
(11) Consent-to-Rate Filing. The filing
description shall:
(a) indicate that the
filing is a consent-to-rate filing;
(b) show the filed rate;
(c) show the proposed rate; and
(d) set forth the reasons for the
difference.
(12)
Individual Risk Filing.
(a) Rule R590-127 sets
forth when an individual risk filing is permitted.
(b) An individual risk filing shall be filed
with the commissioner.
(i) The filing shall
consist of a copy of the declarations page, a copy of any pertinent coverage
form or rating schedule, and premium development.
(ii) The filing description shall indicate
that it is an individual risk filing, and contain the underwriter's explanation
for the filing.
(13) Tiered rating plans are permitted by a
single insurer or insurer group with common ownership.
(a) A filing shall show that the tiers are
based on mutually exclusive underwriting rules, based on clear, objective
criteria that lead to a logical distinguishing of potential risk.
(b) A filing shall provide supporting
information that shows a clear distinction between the expected losses and
expenses for each tier.
(c) If an
insurer group uses a tiered rating structure, the group of insurers may not all
file the same loss cost multiplier and then file standard percentage
deviations.
(i) A difference shall be
demonstrated in the loss cost multiplier formula, either as a modification of
the RSO prospective loss cost or in the insurer expense factor.
(ii) An individual insurer adjustment or
modification shall be supported by actuarial data that establishes a reasonable
standard for measuring probable insurer variations in historical or prospective
experience, underwriting standards, expense and profit factors.
Notes
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