Current through Register 1531, September 27, 2024
(1)
Time
for Rate Filings.
(a)
Voluntary Market Rate Filings. Rate Filings for Rates
to be used in the Voluntary Market shall be filed in paper and in electronic
form with the Commissioner not less than 45 days prior to the proposed
effective date. In addition, when a Rate Filing involving a rate adjustment
depends upon a change in the relationship between the proposed Rates and the
anticipated production expense portion thereof from the relationship
anticipated under any Rates previously filed and currently in effect for the
Insurer or Rating Organization involved, the Insurer or Rating Organization
making such a Rate Filing shall simultaneously give written notice of such
filing to every licensed producer of every Insurer on whose behalf such filing
is made.
(b)
Residual
Market Rate Filings. The Rate Filings for Rates to be used in the
Residual Market shall be filed in paper and electronic form with the
Commissioner not less than 15 days prior to the proposed effective
date.
(2)
Time for Advisory Filings. A Rating Organization may
make an Advisory Filing at any time. Such Filings shall be submitted in paper
and electronic form.
(3)
Filings. One paper copy of any Rate Filing or Advisory
Filing made pursuant to 211 CMR 79.05(1) or (2) shall be submitted to the
Division; provided, however, that the Division may request additional paper
copies that shall be supplied by the Filer at the Filer's expense. The Filer
shall submit simultaneously one copy of the Rate Filing or Advisory Filing to
the Attorney General, unless the Commissioner directs otherwise. Electronic
filings made pursuant to 211 CMR 79.05(1) and (2) shall be in a form
satisfactory to the Commissioner.
(4)
Content. Rate
Filings and Advisory Filings, and Supporting Information as applicable, shall
utilize the forms and checklists approved by the Commissioner. Every Rate
Filing shall state the proposed effective date of the Rate and shall indicate
the scope and extent of the coverage contemplated. The filing shall contain, or
incorporate by reference if previously filed with the Division, the following
information and its data source in the following order:
(a) Summary of Rate level changes and other
matters;
(b) Rate level
calculations for each coverage;
(c)
Premiums and exposures;
(d)
Adjustments to Premiums and exposures;
(e) Accident year reported and paid losses
and claims;
(f) Development
factors;
(g) Claim cost
trends;
(h) Frequency
trends;
(i) Other adjustments to
losses;
(j) Claim adjustment
expenses;
(k) Commission
expenses;
(l) Other
expenses;
(m) Expense
trends;
(n) Underwriting profit,
including due consideration of investment income;
(o) Classification Plans;
(p) Territorial and operator rate class
relativities;
(q) Increased limits
factors;
(r) Deductible and
miscellaneous Rating Factors;
(s)
Credibility;
(t) Final base Rates
and Rating Factors; and
(u) Any
other Supporting Information.
(5)
Copy Available for
Inspection. A copy of each Rate Filing or Advisory Filing shall be
available for public inspection during normal business hours at the
Division.
(6)
Requests
for Copies of Rate Manuals. Every Insurer, Rating Organization
filing for an Insurer, or CAR shall make available to the public copies of its
Rate Manual at a cost not to exceed 30% above the actual cost of printing said
manual.
(7)
Review
Period.
(a)
Voluntary
Market Rate Filings. As provided in M.G.L. c. 175E, § 7, the
Commissioner shall have not less than 45 days to review each Voluntary Market
Rate Filing before it becomes effective. If a hearing on the Rate Filing is
initiated prior to the effective date, this period may be extended by the
Commissioner for an additional period not to exceed 45 days in order to
complete the hearing and make a decision thereon. If the Commissioner suspends
the proposed effective date of any such Filing, the Commissioner shall, by the
close of the period of suspension, either approve the filing or issue an order
disapproving the filing and specifying the grounds for disapproval.
(b)
Residual Market Rate
Filings. As provided in M.G.L. c. 175A, § 6, the Commissioner
shall have not less than 15 days to review each Residual Market Rate Filing
before it becomes effective; provided, however, the Commissioner may by order
suspend the effective date for not more than 30 additional days in any case
where the Commissioner determines that delay is necessary to properly examine
the Filing and Supporting Information or supplemental information, or to permit
a hearing thereon. If the Commissioner suspends the proposed effective date of
any such Filing, the Commissioner shall, by the close of the period of
suspension, either approve the filing or issue an order disapproving the filing
and specifying the grounds for disapproval.
(c)
Incomplete or Inadequate
Filings. When a Rate Filing is incomplete or requires additional
information for the Division to review the filing, the Division may return the
Rate Filing to the Filer with questions or comments regarding the missing or
incomplete information. The Commissioner may toll the proposed effective date
of any Rate Filing that is materially incomplete or inadequate until such time
that the Rate Filing complies with 211 CMR 79.05 upon notice to the Filer.
Where this occurs, the new effective date shall be calculated by extending the
initial proposed effective date by the number of days in the toll period,
unless the Filer provides a later date. Until any missing or requested
information is provided, the Rate Filing neither shall be deemed complete nor
filed, nor available for use by the Insurer. If the requested information is
not provided within a reasonable time period, the Rate Filing may be returned
as not filed and not available for use.
