Utah Admin. Code R590-225-9 - Additional Procedures for Workers Compensation Rate Filings

(1) A rate filing for workers compensation 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) A rate filing and supplementary information shall be filed 30 days before they are used.

(3)

(a) Each insurer shall individually determine the rates it will file.

(b) Filed rates.

(i) An insurer's workers compensation filed rates are the combination of the most current prospective loss cost filed by the designated rate service organization and the insurer's loss cost adjustment, known as the loss cost multiplier (LCM), as calculated, and filed using the Utah Worker's Compensation Insurer Loss Cost Multiplier Filing Form.

(ii) An insurer shall implement the designated RSO's current prospective loss cost on the effective date assigned by the designated RSO, and may not defer nor delay adoption of the lost cost multiplier.

(iii) An insurer's filed loss cost multiplier shall remain in effect until the insurer withdraws it or files a new loss cost multiplier.

(iv) Upon receiving a subsequent designated RSO reference filing, an insurer's filed rates are the combination of the designated RSO's prospective loss cost and the loss cost multiplier contained in the insurer's most current Utah Loss Cost Multiplier Filing Form on file with the department.

(4)

(a) An insurer may file a modification to the designated RSO prospective loss cost in the subject reference filing based on its own anticipated experience.

(b) Supporting documentation is required for any modification, upward or downward, of the designated RSO prospective loss cost.

(5)

(a) An insurer may vary expense loads by individual classification or grouping.

(b) An insurer may use variable or fixed expense loads or a combination of these to establish its expense loadings.

(c) An insurer shall file data in accordance with the uniform statistical plan filed by the designated RSO.

(6) A filing for a workers compensation rating plan, a rating modification plan, or a credit and debit plan shall include:

(a) a statement identifying the arithmetic process used and whether factors will be added or multiplied when applying them to base rates; and

(b) a justification for the method used.

(7)

(a) If an insurer's rates are determined solely by applying its loss cost multiplier, as presented in the Utah Worker's Compensation Insurer Loss Cost Multiplier Filing Forms to the prospective loss cost contained in a designated RSO reference filing and contained in the designated RSO's rating manual, the insurer need not develop or file its rate pages.

(b) If an insurer chooses to distribute rate pages for its own use, based solely upon the application of its filed loss cost multiplier, the insurer need not file those pages.

Notes

Utah Admin. Code R590-225-9

Amended by Utah State Bulletin Number 2018-1, effective 12/8/2017 Amended by Utah State Bulletin Number 2023-06, effective 3/10/2023