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 120-2-41 - MODIFICATIONS TO CLASSIFICATIONS OF RISKS
Rule 120-2-41-.05 - Exceptions to Standards
Current through Rules and Regulations filed through September 23, 2024
(1) Notwithstanding paragraph (5) of Rule 120-2-41-.04, plans based on factors other than past loss experience to which this Regulation applies may utilize a maximum debit of forty percent (40%) and a maximum credit of fifty percent (50%) if the insurer shows to the satisfaction of the Commissioner that the amount collected on an annualized basis from all insureds under the line of coverage of the rating plan of the insurer is not less than ninety-five percent (95%) but not more than one hundred five percent (105%) of an amount represented by the product of the filed rate amount on the line of coverage of the rating plan multiplied by the annualized number of insureds.
(2) For purposes of implementation of this Regulation, an insurer is deemed to be in compliance, as of January 1, 1988, with paragraph (1) of this Rule.
(3) Reporting of compliance for continued usage of the debit and credit percentages under paragraph (1) of this Rule shall be on an annual basis which shall coincide with the expiration date of policies, if such policies issued have a uniform annual expiration date. Otherwise, reporting shall be made as of December 31 of each year. Reports shall be due in the Office of the Commissioner on the reporting date of the annual statement as provided by law.
(4) If a report shows a failure to comply with paragraph (1) of this Rule regarding collected amounts, the insurer shall use the percentages specified under paragraph (5) of Rule 120-2-41-.04 for one (1) year following the reporting date specified in paragraph (3) of this Rule upon all policies issued or renewed under such rating plan, unless the insurer files new rates for such rating plan which, under such submission, will achieve compliance. Additionally, a failure to file new rates shall be analyzed for a failure to comply with paragraphs (1) through (6) of O.C.G.A. Section 33-9-4.
O.C.G.A. Sec. 33-2-9.
