Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 500 - Property and Casualty
Chapter 6 - Workers' Compensation and Employers' Liability
Section 20 CSR 500-6.950 - Workers' Compensation Rate and Supplementary Rate Information Filings
Universal Citation: 20 MO Code of State Regs 500-6.950
Current through Register Vol. 48, No. 24, December 15, 2023
PURPOSE: This rule sets forth the rules and procedures which the director of the Department of Insurance deems necessary to carry out the provisions for individual insurance companies making Workers' Compensation insurance rate filings pursuant to sections 287.930-287.975, RSMo. When making rate filings, individual insurers may utilize historical rate-making data, as defined in this rule, and developed and tended as follows:
1) by the Missouri Department of Insurance, 2) by the designated advisory organization or 3) by the insurer itself.
(1)
Applicability and Scope. This rule applies to statutory Workers' Compensation
insurance as described in sections
287.090,
287.280
and
287.310,
RSMo and to insurers making filings under section
287.947,
RSMo.
(2) Definitions.
(A) Accepted actuarial standards means the
standards adopted by the Casualty Actuarial Society in its Statement of
Principles Regarding Property and Casualty Insurance Rate-making, and the
Standards of Practice adopted by the Actuarial Standards Board.
(B) Advisory organization means any entity
which has two (2) or more member insurers or is controlled either directly or
indirectly by two (2) or more insurers, and which assists insurers in
ratemaking related activities and is licensed pursuant to section
287.967,
RSMo. Two (2) or more insurers which have a common ownership or operate in this
state under common management or control constitute a single insurer for the
purposes of this definition. Advisory organization does not include a joint
underwriting association, any actuarial or legal consultant, any employee of an
insurer or insurers under common control or management or their employees or
manager.
(C) Director means the
director of the Missouri Department of Insurance.
(D) Expenses means that portion of any rate
attributable to acquisition and field supervision; collection expenses and
general expenses; and taxes, licenses and fees.
(E) Historical ratemaking data means
information respecting Workers' Compensation insurance exposures, premiums and
claims paid or reserves held for claims reported, including actual loss
adjustment expenses paid or reserved for claims paid or reported but excluding
all other expenses or profit, without judgmental adjustments such as loss
development and projections through loss trending to a future point in
time.
(F) Loss trending means any
procedure projecting developed losses to the average date of loss for the
period during which the policies are to be effective.
(G) Pure premium rate means that portion of
the rate which represents the loss cost per unit of exposure including loss
adjustment expense.
(H) Rate means
the costs of insurance per exposure base unit, prior to any application of
individual risk modifications based on loss or expense considerations, and does
not include minimum premiums.
(I)
Supplementary rate information means any manual or plan of rates,
classification system, rating schedule, minimum premium, policy fee, rating
rule, rating plan and any other similar information needed to determine the
applicable premium for an insured.
(J) Supporting information means the
experience and judgment of the filer and the experience or data of other
insurers or organizations relied on by the filer, the interpretation of any
statistical data relied on by the filer, descriptions of methods used in making
the rates and any other similar information required to be filed by the
director.
(3) Reference
Filings-Advisory Historical Loss Costs.
(A)
The advisory organization shall make reference filings and distribute
historical rate-making data in the following manner adjusted for:
1. Development and loss trending by the
advisory organization;
2.
Development and loss trending by the director; and
3. Loss development without any trend
factor.
(B) An insurer
shall satisfy its rate filing obligation by submitting-
1. Final rates for each classification in
which the insurer writes any voluntary market insurance;
2. The information required in section (4);
and
3. All supplementary rate
information used in developing the final premium of any insured.
(4) Required Filing
Documents. All insurer rate filings shall include the following documents:
(A) Independent Rate Filing Form (Exhibit
A);
(B) Rate Development Summary
Form (Exhibit B);
(C) A TD-2 filing
form and filing fee; and
(D) The
final rate pages, including supplementary rate information, indicating the rate
for each classification that the insurer chooses to market. Insurers shall file
these rates using an electronically readable format. The director will outline
the format for making the filings.
(5) Supplementary Rate Information.
(A) Advisory organizations may not develop
and make filings of supplementary rating information except as provided in
section 287.972.1, RSMo.
(B) Each
insurer shall file all supplementary rate information it uses to determine the
final premium of any insured employer.
(6) Filing of Rates Effective January 1,
1994. All insurers writing Workers' Compensation insurance in this state shall
file their rates in effect on January 1, 1994, along with all supplementary
rate information. Insurers shall file these rates and supplementary rate
information not later than thirty (30) days after their effective
date.
(7) Filing of Rates Effective
After January 1, 1994. All insurers filing rates after January 1, 1994, shall
file these rates, along with all supplementary rate information, not later than
thirty (30) days after their effective date. Nothing in this provision shall
prevent insurers from making these filings at any time prior to the effective
date of the filings.
AUTHORITY: sections 287.947 and 374.045, RSMo Supp. 1993.* Emergency rule filed Nov. 2, 1993, effective Jan. 1, 1994, expired April 1, 1994. Original rule filed Nov. 2, 1993, effective June 6, 1994.
*Original authority: 287.947, RSMo 1993 and 374.045, RSMo 1967, amended 1993.
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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