Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
304.1-010,
304.1-050,
304.4-010(2),
304.13-011,
304.13-021
304.13-031, 304.13-051, 304.13-061, 304.13-081, 304.21-010, 304.22-020,
304.23-010
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
304.2-110 authorizes the commissioner to
promulgate administrative regulations necessary for or as an aid to the
effectuation of any provision of the Kentucky Insurance Code, defined in
KRS
304.1-010. This administrative regulation
establishes rate and rule filing procedures for property, casualty, surety,
title, and mortgage guaranty insurance.
Section
1. Definitions.
(1) "Advisory
organization" is defined by
KRS
304.13-011(9).
(2) "Commissioner" is defined by
KRS
304.1-050(1).
(3) "Department" is defined by
KRS
304.1-050(2).
(4) "Loss cost" means the loss cost per unit
of exposure excluding all loss adjustment expenses.
(5) "Rate" is defined by
KRS
304.13-011(22).
(6) "Statistical agent" is defined by
KRS
304.13-011(24).
(7) "Supplementary rating information" is
defined by
KRS
304.13-011(2).
Section 2.
(1) Paper filings shall include two (2) full
document sets, on 8 1/2" x 11" white paper, with three (3) copies of Form PC
TD-1, Property & Casualty Transmittal Document and a self-addressed stamped
envelope. The interactive version of this form is available on the National
Association of Insurance Commissioners Web site at
https://content.naic.org/industry_rates_forms_trans_docs.htm.
(2) A property and casualty insurance
company, advisory organization, or statistical agent may file a rate or
supplementary rating information on the commissioner's electronic system for
rate and form filings via the Web site
www.serff.com. An electronic filing shall be in
lieu of a paper filing.
Section
3.
(1) Every insurer, other than
a life or health insurer, required by law or licensed advisory organization, or
statistical agent permitted by law to file rates, loss costs, supplementary
rating information, statistical plans, advertising and sales materials, or
other documents shall file with these documents a completed and signed Form PC
TD-1, Property and Casualty Transmittal Document.
(2) If the filing is being made by a third
party, a signed letter of authorization from the insurer shall be
submitted.
Section 4.
(1) A filing may include any number of
documents, filed together on a particular date, pertaining to a single type of
insurance identified on the Uniform Property and Casualty Product Coding Matrix
This form is available electronically on the National Association of Insurance
Commissioners Web site at
https://content.naic.org/sites/default/files/inline-files/2021%20PC%20PCM.pdf.
(2) Rates, loss costs, and supplementary
rating information shall be filed separately from forms.
Section 5. All rate, loss cost, or
supplementary rating information filings shall be accompanied by Form PC
RRFS-1. Rate/Ruling Filing Schedule. This form is available electronically at
https://insurance.ky.gov/PPC/Documents/NAICPropCasFormFilingSched102708.pdf.
Section 6.
(1)
(a)
Except as otherwise provided in paragraph (b) of this subsection, rate filings
referencing loss costs formulated by an advisory organization shall be
accompanied by Form LC-1 P & C, Calculation of Loss Cost Multiplier. This
form is available electronically at
https://insurance.ky.gov/PPC/Documents/LC-1%202007.pdf.
(b) A rate filing referencing loss costs
formulated by an advisory organization in which an expense constant is used
shall be accompanied by Form LC-2 P & C, Expense Constant Supplement,
Calculation of Loss Cost Multiplier. This form is available electronically at
https://insurance.ky.gov/PPC/Documents/LC-2%20P&C%202007.pdf.
(2) A rate filing to which this
section applies shall include separate Forms LC-1 P & C, Calculation of
Loss Cost Multiplier; and LC-2 P& C, Expense Constant Supplement,
Calculation of Loss Cost Multiplier for each company included in the
filing.
Section 7.
(1)
(a) An
insurer filing rates or supplement rating information regarding personal
automobile insurance shall submit premium comparison information on-line via
the Department of Insurance Web site,
https://insurance.ky.gov/doieservices/UserRole.aspx,
if any rate or supplementary rating information change impacts the premium
information previously submitted.
(b) If there is not an impact to premium
information previously submitted, an explanatory statement shall be included in
Form PC TD-1, Property and Casualty Transmittal Document.
(2)
(a) An
insurer filing rates or supplemental rating information regarding homeowners'
insurance shall submit premium comparison information on-line via the
Department of Insurance Web Site,
https://insurance.ky.gov/doieservices/UserRole.aspx,
if any rate or supplementary rating information change impacts the premium
information previously submitted.
(b) If there is not an impact to premium
information previously submitted on-line, an explanatory statement shall be
included in Form PC TD-1 Property and Casualty Transmittal Document.
(3) A filing to which this section
applies shall include a separate premium comparison information for each
company included in the filing.
Section 8.
(1) A property and casualty rate or
supplementary rating information filing may include rates or supplementary
rating information for a particular insurance company or group of insurance
companies.
(2) If the filing is
made for a group of insurance companies, Form PC TD-1, Property and Casualty
Transmittal Document shall identify all companies included in the
filing.
Section 9.
(1) Filing fees shall be paid on a per
company basis.
(2) Pursuant to
KRS
304.4-010(2), all fees and
charges payable under the insurance code, KRS Chapter 304, shall be collected
by the department pursuant to
806 KAR
4:010.
(3)
The period of time in which the commissioner may affirmatively approve or
disapprove the filing shall not begin to run until both the complete filing and
appropriate fee are received by the department.
Section 10.
(1) An insurer that is a member, subscriber,
or service purchaser of an advisory organization or statistical agent may
choose to adopt all or some of the loss costs, supplementary rating
information, or statistical plans of that advisory organization or statistical
agent.
(2) If an insurer chooses to
adopt only a specific filing of an advisory organization or statistical agent,
it shall do so in accordance with the procedures established in subsection (3)
of this section, and shall clearly identify which filing of the advisory
organization or statistical agent it is adopting.
(3)
(a) If
an insurer chooses to adopt all of the current and future loss costs,
supplementary rating information, or statistical plans of an advisory
organization or statistical agent, it shall:
1. Provide written authorization to the
advisory organization or statistical agent to notify the commissioner that the
insurance company shall adopt all of the loss costs, supplementary rating
information, or statistical plans that the advisory organization or statistical
agent files on its behalf; or
2.
File written notice with the commissioner that the insurer is adopting by
reference all of the current and future loss costs, supplementary rating
information, or statistical plans that the advisory organization or statistical
agent files.
(b)
1. If required by law to file its rates, an
insurer may file a loss cost multiplier, in accordance with this section and
Sections 2 through 9 of this administrative regulation, to adopt the
prospective loss costs filed by an advisory organization.
2. The insurer shall:
a. Apply its loss cost multiplier to a
specific loss cost filing; or
b.
Elect to have its multiplier apply to all future loss costs filed by the
advisory organization.
(c)
1. The
advisory organization or statistical agent shall file the written notice of
authorization referred to in paragraphs (a) and (b) of this subsection with the
commissioner and shall pay the appropriate fee, pursuant to
KRS
304.4-010 and
806 KAR
4:010.
2.
The fee shall be paid for each company sending a written authorization and on
the basis of each line of insurance.
(d)
1. If
an insurer that previously authorized an advisory organization or statistical
agent to file loss costs, supplementary rating information, or statistical
plans on its behalf chooses to not adopt certain loss costs, supplementary
rating information, or statistical plans as filed on its behalf by the advisory
organization or statistical agent, or changes its loss cost multiplier, the
insurer shall file a notice of the nonadoption or change of its loss cost
multiplier with the commissioner and shall pay the appropriate filing fee,
pursuant to
KRS
304.4-010 and
806 KAR
4:010.
2.
a. If an insurer chooses to delay the
effective date of its adoption of an advisory organization or statistical agent
filing, it shall submit a letter requesting the revised date upon which it will
adopt the filing.
b. The delayed
adoption date shall be within six (6) months of the original effective
date.
c. If additional time is
needed, a second letter shall be submitted, requesting a revised delayed
adoption date.
d. All revised
delayed adoption dates shall be within one (1) year of the original effective
date as filed by the advisory organization or statistical agent.
3. If an insurer fails to adopt
the advisory organization or statistical agent filing within one (1) year of
the original effective date as filed by the advisory organization or
statistical agent, the insurer shall submit a filing indicating it is not
adopting.
Section 11. A property and casualty insurance
company, advisory organization and statistical agent may file its prospective
loss cost or rate on the commissioners' electronic system for rate and form
filings via the Web site www.serff.com. An
electronic filing shall substitute for any physical filing.
Section 12. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "Uniform Property and Casualty
Product Coding Matrix", 01/2021 ;
(b) Form PC TD-1, "Property and Casualty
Transmittal Document", 01/2020 ;
(c) Form PC RRFS-1, "Rate/Rule Filing
Schedule", 3/2007;
(d) LC-1
P&C, "Calculation of Loss Cost Multiplier", 10/2007 ;
(e) LC-2 P&C, "Expense Constant
Supplement, Calculation of Loss Cost Multiplier with Expense Constant",
10/2007; ;.
(2) This
material may be inspected, copied, or obtained, subject to applicable copyright
law, from the Department of Insurance, The Mayo-Underwood Building, 500 Mero
Street, 2 SE 11,, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to
4:30 p.m. This material is also available on the department's Internet Web site
at:
https://insurance.ky.gov/ppc/CHAPTER.aspx
or the Web site of the National Association of Insurance Commissioners at
www.naic.org.
STATUTORY AUTHORITY:
KRS
304.2-110,
304.13-061