Compilation of Rules and Regulations of the State of Georgia
Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER
Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE
Subject 120-2-38 - GEORGIA WORKERS' COMPENSATION ASSIGNED RISK INSURANCE PLAN
Rule 120-2-38-.08 - Rates, Rating Plans, Rating Systems, Underwriting Rules and Policy Forms for Plan

(1) The rates, rating plans, rating systems, underwriting rules and policy forms used in connection with the Plan shall be the rates, rating plans, rating systems, underwriting rules and policy forms filed by the Administrator and approved by the Commissioner.

(2) The Administrator shall maintain necessary ratemaking data in order to permit the actuarial determination of rates and rating plans appropriate for the business insured through the Plan, shall monitor both rate adequacy and Plan results, and shall notify the Commissioner if excessive losses are indicated to enable the Commissioner to take corrective action.

(3) The intended purpose of this section is to provide rates in the Plan that are adequate, not excessive and not unfairly discriminatory and which will allow the Plan to operate as a self-funded mechanism.

(4) For Plan policies with effective dates on or after January 1, 1996, the Commissioner shall approve and implement a plan which establishes rates adequate to eliminate any Plan operating deficit by January 1, 1999. In this Plan, the Commissioner shall also consider expense saving items which may improve the operating results of the Plan.

(5) Any Plan operating deficit generated from Plan policy years prior to January 1, 1996 shall not be passed along to current or future Plan policy holder. Any such deficit shall be fulfilled pursuant to the plan of operation in effect at that time.

(6) The Administrator shall include necessary ratemaking data in each rate filing with the Commissioner to sufficiently support such filing. This shall include information concerning loss development and trend, expenses, and investment income. The Administrator shall also, upon request, provide any other information needed to assist the Commissioner in his review of each rate filing.

(7) The following system of credits shall be granted by the Administrator against assessment or participation of Insurers in the Plan for the voluntary writing of a Risk whose immediate prior Insusrer for a period of at least one year was the Plan. The system of credits shall apply for a period of time specified in the Administrator's filing and approved by the Commissioner:

(8) The Commissioner shall annually submit a report to the General Assembly. To assist the Commissioner in this responsibility, the Administrator shall provide, by September 1 of each year, estimated Plan operating surpluses or deficits, Plan premium and size distributions, results of the three tier rating program, effect of the Servicing Carrier remedial program, results of Servicing Carrier incentives and disincentives, and any other information that the Commissioner deems necessary to evaluate the Plan.