Utah Admin. Code R590-285-15 - Premium Rate Schedule Increases

(1) This section applies to any policy or certificate issued in this state on or after July 1, 2021.

(2) An insurer may not request a rate increase until the projected lifetime loss ratio, under best estimate assumptions, exceeds the anticipated lifetime loss ratio plus 2%.

(3) An insurer shall file with the commissioner a premium rate schedule increase before sending the notice to the policyholders and shall include:

(a) a revised rate schedule;

(b) an actuarial memorandum that includes;

(i) a statement regarding the actuary's qualifications;

(ii) an explanation of the review performed by the actuary;

(iii) a complete description of all pricing assumptions and any changes from the initial and any prior filing;

(iv) an exhibit showing policy count, actual incurred claims, and earned premiums by duration both on a state and nationwide basis, and any revised projections based on the revised pricing assumptions;

(v) an exhibit showing actual to expected loss ratios by duration;

(vi) a statement that the revised premium schedule is expected to result in a lifetime loss ratio not less than 55%;

(vii) a sensitivity analysis of the anticipated lifetime loss ratio to the changes in the individual assumptions, including any revised assumptions, including sensitivity to the mix of business;

(viii) a description of the valuation assumptions, including any revisions since the initial and any prior filing, with sufficient detail or sample calculation to have a complete depiction of the reserve amounts to be held; and

(ix) a statement that the difference between the gross premium and the net valuation premium for renewal years is sufficient to cover expected renewal expenses, or if such statement cannot be made, a complete description of the situation where this does not occur; and

(c) an actuarial certification dated and signed by the actuary that the information presented in the actuarial memorandum is accurate and complete.

(4) An insurer that is granted a premium rate schedule increase shall retain similar documentation related to the rate increase request as required in Subsection R590-285-9(2).

Notes

Utah Admin. Code R590-285-15

Adopted by Utah State Bulletin Number 2021-05, effective 2/23/2021 Adopted by Utah State Bulletin Number 2024-21, effective 10/22/2024