California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4.10 - Rates for Credit Property Insurance and Credit Unemployment Insurance
Article 3 - Regulation of Rates
Section 2670.5 - Presumptive Loss Ratios and Prima Facie Rates, Generally
For the purpose of implementing Insurance Code Section 779.36, the presumptive loss ratio for credit property insurance coverage or for credit unemployment insurance coverage shall be the permissible loss ratio set forth in Section 2670.6, Prima Facie Rates and Permissible Loss Ratio for Benchmark Program computed by dividing incurred losses by earned premiums, using calendar year data. For the purpose of Insurance Code Section 1861.05, it shall be presumed that a rate is excessive if incurred losses cannot be reasonably expected to equal the appropriate percent of the earned premiums for each credit property insurance experience group or for each credit unemployment insurance experience group. These regulations contain prima facie rates and loss ratios based on the benchmark programs set forth in this Subchapter. An insurer may use a program which is different from a benchmark program provided the insurer shows that the proposed rate for the program is expected to produce a loss ratio of at least the appropriate percent set forth in Section 2670.6, Prima Facie Rates and Permissible Loss for Benchmark Programs.
1. New article 3
(sections 2670.5-2670.11) and section filed 3-10-2003; operative 4-9-2003. Submitted
to OAL for printing only pursuant to Government Code section
11343.8 as a
regulation that establishes rates in accordance with Government Code section
11340.9(g)
(Register 2003, No. 11).
2. Change without regulatory effect withdrawing
and repealing article 3 (sections 2670.5-2670.11) and section pursuant to settlement
agreement in Consumer Credit Insurance Association v. John Garamendi (California
Superior Court No. 03CS00533) filed 5-27-2004 pursuant to section
100, title 1, California Code of
Regulations (Register 2004, No. 22).
3. New article 3 (sections
2670.5-2670.11) and section filed 4-28-2006; operative 5-28-2006. Submitted to OAL
for printing only pursuant to Government Code section
11343.8 as a
regulation that establishes rates in accordance with Government Code section
11340.9(g)
(Register 2006, No. 17).
Note: Authority cited: Sections 779.21, 779.36, 12921 and 12926, Insurance Code; Credit Insurance General Agents Association v. Payne, 16 Cal.3d 651 (1976); and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference: Sections 779.36, 1861.01 and 1861.05, Insurance Code.
