Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This proposed amendment will accurately
reflect filing fees as stated in 374.230(6) RSMo, updated on January 1, 2019
and allows for text within the exhibits to be more legible.
(1) Applicability and Scope. This rule
applies to the types of insurance described in sections
379.316
and
379.882,
RSMo and to insurers making filings under sections
379.321
and
379.888.2.,
RSMo.
(2) Definitions.
(A) Expenses means that portion of a rate
attributable to acquisition, field supervision, collection expenses, general
expenses, taxes, licenses and fees.
(B) The term prospective loss costs means
that portion of a rate that does not include provisions for expenses (other
than loss adjustment expenses) or profit, and are based on historical aggregate
losses and loss adjustment expenses adjusted through development to their
ultimate value and projected through trending to a future point in
time.
(C) Rate means the cost of
insurance per exposure unit, whether expressed as a single number or as
prospective loss cost and an adjustment to account for the treatment of
expenses, profit and variations in loss experience, prior to any application of
individual risk variations based on loss or expense considerations, and does
not include minimum premiums.
(D)
Rating organization is an organization licensed pursuant to sections
379.323
and
379.440,
RSMo.
(E) Supplementary rating
information means any manual, minimum premium, rating schedule or plan of
policy writing rules, rating rules, classification system, territory codes and
descriptions, rating plans and any other similar information needed to
determine the applicable premium for an insured. Supplementary rating
information includes factors and relativities, such as increased limits
factors, classification relativities, deductible relativities or similar
factors.
(F) Supporting information
means information, including supporting actuarial data, which includes:
i) the experience and judgment of the insurer
and the experience or data of other insurers or rating organizations relied
upon by the insurer,
ii) the
interpretation of any statistical data relied upon by the insurer,
iii) descriptions of methods used in making
the rates and
iv) actuarial,
technical or other services made available by a rating organization, or other
similar information required to be filed by the director.
(3) Rating Organization Reference
Filings of Advisory Prospective Loss Costs.
(A) Rating organizations may develop and make
reference filings containing advisory prospective loss costs. These filings
shall contain the statistical data and supporting information for any
calculations or assumptions underlying those prospective loss costs. The
reference filings shall be filed and made effective in accordance with the
provisions of sections
379.321
and
379.888.2.,
RSMo.
(B) An insurer may satisfy
its obligation to make rate filings by-i) becoming a participating insurer of a
licensed rating organization which makes reference filings of advisory
prospective loss costs, ii) filing with the director the information required
in section (4) and iii) authorizing the director to accept the reference
filing(s) on its behalf. The insurer's rates shall be the prospective loss
costs filed by the rating organization which have been put into effect in
accordance with the provisions of subsection (3)(A), combined with the loss
cost adjustments which are filed in accordance with section (4) and are in
effect for the insurer.
(C) The
insurer's loss cost adjustment filing shall become effective in accordance with
the provisions of sections
379.321
and
379.888.2.,
RSMo that apply to the filing and effective date of rates.
(4) Required Filing Documents. All insurer
filings which refer to a rating organization prospective loss costs reference
filing shall include, in the order listed, the following documents:
(A) Reference Filing Adoption Form (Exhibit
A);
(B) Summary of Supporting
Information Form (Exhibit B);
(C)
Expense Constant Supplement Form (Exhibit C, if needed); and
(D) To the extent that an insurer's final
rates are determined solely by applying its loss cost adjustments, as presented
in the Reference Filing Adoption Form, to the prospective loss costs contained
in a rating organization's reference filing and printed in the rating
organization's rating manual, the insurer need not develop or file its final
rate pages with the director. If an insurer chooses to print and distribute
final rate pages for its own use, based solely upon the application of its
filed loss cost adjustments to a rating organization's prospective loss costs,
the insurer need not file those pages with the director. If the rating
organization does not print the loss costs in its rating manual, the insurer
must submit its rates to the director.
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(5) Rating Organization Filings of Advisory
Supplementary Rating Information.
(A) Rating
organizations may develop and make filings of supplementary rating information.
These filings shall be made in accordance with sections
379.321
and
379.888.2.,
RSMo.
(B) Any insurer may satisfy
its obligations to make filings of supplementary rating information by becoming
a participating insurer of a licensed rating organization and by authorizing
the director to accept these filings on its behalf. The insurer's supplementary
rating information shall be that filed by the rating organization, subject to
any modifications filed by the insurer.
(6) Existing Rates and Deviations Remain in
Effect Until Disapproved, Replaced and Modified. Nothing in these procedures
shall be construed to require rating organizations or their participating
insurers to immediately refile rates in effect. Any participating insurer of a
rating organization is authorized to continue to use all rates and deviations
in effect until the rates are disapproved or until the insurer makes its own
filing to change its rates, either by making an independent filing or by filing
a reference filing form adopting the rating organization's prospective loss
costs or modification of those costs.
*Original authority: 374.045, RSMo 1967; 379.316 and
379.321, RSMo 1972; and 379.882 and 379.888, RSMo 1987.
