Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 220 - CREDIT LIFE AND HEALTH INSURANCE
Section 031-220-13 - Reporting

Universal Citation: 02 ME Code Rules ยง 031-220-13

Current through 2024-38, September 18, 2024

A. Each insurer doing a credit life and/or credit accident and health insurance business in the State of Maine shall file annually, prior to June 1, reports of its credit life insurance and credit accident and health insurance experience in this State on forms prescribed by the Superintendent and attached to this Rule as Appendix A. The experience reports shall be filed in an electronic format prescribed by the Superintendent. The reporting method is file and use. Experience filings will be reviewed for compliance with the requirements of this Rule. Any deficiencies will be brought to the attention of the carrier. If the rates have already been implemented, corrective action may be required. If the carrier desires to receive confirmation prior to implementation the carrier should provide to the Bureau the cover letter in duplicate requesting the confirmation. Every effort will be made to process filings within 60 days of the June 1 deadline.

B. Each insurer may report experience and determine rate deviations either by combining experience for all policyholders in this state or, if sufficiently credible as defined below, by splitting experience into two or more cases.

(1) "Case" means either a "Single Account Case" or a "Multiple Account Case" or a "Pooled Account Case" as follows:
a. "Single Account Case" means a case consisting of only one account as defined in Section 4. The account must meet the credibility standards of Paragraph (2) below.

b. "Multiple Account Case" means two or more accounts of the same insurer, having similar underwriting characteristics, which are combined by the insurer for premium rating purposes and which, when combined, meet the credibility standards of Paragraph (2) below.

c. "Pooled Account Case" means a combination of all the insurer's accounts of the same plan of insurance, excluding all cases defined in (a) and (b) above. A pooled account case must meet the credibility standards of Paragraph (2) below.

Experience reports for multiple account cases and pooled account cases must include a list of the accounts included in the case.

Once a case is established, it cannot be changed unless such change is according to the case determination guidelines of the insurer and is approved by the Superintendent. However, if a case ceases to meet the credibility standards of Paragraph (2) below, it must be combined with another case.

Experience reported for a Multiple Account Case or a Pooled Account Case must exclude experience on any accounts that terminated during the three-year experience period.

(2) A case meets minimum credibility standards if the credibility factor from the table below is at least equal to the minimum credibility factor elected by the insurer. An insurer may make this election by notice to the Superintendent, in writing. The minimum credibility factor elected may not be less than 50 percent. Once elected, the minimum credibility factor will remain in effect for the insurer until a different factor has been filed by the insurer and approved by the Superintendent. If an insurer makes no written election, its minimum credibility factor will be 100 percent.

(3) The credibility factor may be based on either the Number of Claims incurred or on the Number of Life Years for the case during the experience period. The insurer shall notify the Superintendent in writing which method it will use to measure the credibility of all its cases in this State and may not change its method without prior approval. If Claim Count or Life Year data is not available, reasonable methods of approximation approved by the Superintendent may be used until such data is developed.

CREDIBILITY TABLE

Number of Life Years Incurred Credibility
Credit Life Credit Accident & Health Claim Count Factor
1 - 1,799 1 - 208 1 - 8 .00
1,800 - 2,399 209 - 278 9 - 11 .25
2,400 - 2,999 279 - 348 12 - 14 .30
3,000 - 3,599 349 - 418 15 - 17 .35
3,600 - 4,599 419 - 534 18 - 22 .40
4,600 - 5,599 535 - 651 23 - 27 .45
5,600 - 6,599 651 - 766 28 - 32 .50
6,600 - 7,599 767 - 883 33 - 37 .55
7,600 - 9,599 884 - 1,115 38 - 47 .60
9,600 - 11,599 1,116 - 1,348 48 - 57 .65
11,600 - 14,599 1,349 - 1,697 58 - 72 .70
14,600 - 17,599 1,698 - 2,046 73 - 87 .75
17,600 - 20,599 2,047 - 2,394 88 - 102 .80
20,600 - 25,599 2,395 - 2,976 103 - 127 .85
25,600 - 30,599 2,977 - 3,557 128 - 152 .90
30,600 - 39,999 3,558 - 4,650 153 - 199 .95
40,000 + 4,651 + 200 + 1.00

(4) If a creditor changes insurers, the case rate in effect for that account on the date of the change will continue to be in effect for the account with the succeeding insurer until such time as revised rates are filed in accordance with Sections 8(D) and 10(F), except that if the prior insurer had scheduled a downward deviation, the new insurer must implement it.

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