Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 280 - GROUP HEALTH CONTRACTS CONVERSION RULE
Section 031-280-5 - Rates

Universal Citation: 02 ME Code Rules ยง 031-280-5
Current through 2024-38, September 18, 2024

The initial premium for the converted policy, whether group or individual, for the first twelve months and subsequent renewal premiums shall be determined in accordance with premium rates applicable to individually underwritten standard risks for the age and class of risk of each person to be covered and the type and amount of insurance provided. The experience under converted policies shall not be an acceptable basis for establishing rates for converted policies. However, if an insurer experiences incurred losses for a period of two years, or one year if earned premiums in that year exceed $100,000, on conversion policies which have been in force for at least one year, which exceed earned premiums by more than 20 percent, the insurer may file with the Superintendent of Insurance amended renewal rates for the subsequent year which will produce a loss ratio of not less than 120 percent.

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