California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4.8 - Review of Rates
Article 5 - Determination of Rates for Rollback Period
Section 2645.3 - General
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Except as otherwise specified in this article, rates for the rollback period shall be evaluated in the manner specified in article 4 of this subchapter. To the extent that the rates charged during the rollback period exceeded the minimum permitted earned premium, the excess shall be refunded to consumers with interest as set forth in section 2544.9.
(b) Rollback calculations shall be made on an aggregate basis, rather than on a per-exposure basis. Interjurisdictional allocations shall be made as specified in section 2643.6, except that calculations specified in subdivisions (a)(4) and (a)(5) of section 2643.6 shall be made on the basis of earned premium. Leverage factors shall be computed in accordance with section 2644.17.
(c) While premiums paid for surety, credit, and financial guaranty insurance have been exempted by the Legislature from the requirement that they be rolled back, the amount of the rollback due on other property-casualty insurance, to the extent that the rollback is constrained by constitutional limits, is properly determined by evaluating the profitability of all the insurer's California property-casualty insurance not excluded by section 1851 of the Insurance Code. Accordingly, the minimum earned premium shall be calculated on all property-casualty insurance not excluded by section 1851 of the Insurance Code, including surety, credit, and financial guaranty.
(d) The option to disaggregate data within lines as provided by section 2642.7 shall not apply to rollback year calculations.
(e) Minimum permitted earned premium shall be determined on an all-lines combined, groupwide basis.
1. New section
filed 8-13-91 as an emergency; operative 8-13-91 (Register 92, No. 3). A Certificate
of Compliance must be transmitted to OAL 12-11-91 or emergency language will be
repealed by operation of law on the following day.
2. Repealed by
operation of Government Code section
11346.1(g)
(Register 92, No. 15).
3. New section refiled 2-14-92 as an emergency;
operative 2-14-92 (Register 92, No. 15). A Certificate of Compliance must be
transmittted to OAL 6-15-92 or emergency language will be repealed by operation of
law on the following day.
4. Repealed by operation of Government Code
section
11346.1(g)
and new section filed 3-15-95; operative 3-15-95. Submitted to OAL for printing only
pursuant to Government Code section
11343(a)(1)
(Register 95, No. 11).
Note: Authority cited: Sections 1861.01 and 1861.05, Insurance Code; 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference: Sections 1861.01, 1861.05, 1861.135, 1861.137 and 12120 of the Insurance Code, Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d 805.
