Nebraska Administrative Code
Topic - INSURANCE, DEPARTMENT OF
Title 210 - NEBRASKA DEPARTMENT OF INSURANCE
Chapter 73 - EXEMPT COMMERCIAL POLICYHOLDERS
Section 210-73-007 - Premiums used to determine exempt commercial policyholder status

007.01 Calculation of premium amounts

For purposes of determining whether a policyholder is a Class RF, RFS or R policyholder, premiums shall include all commercial lines property and casualty insurance premiums generated by a policyholder on risks located in Nebraska and elsewhere, without regard to whether such insurance is purchased from one or more insurers. Such premiums shall be those offered by an insurer for the prospective policy term. If an insurer is not offering all of the commercial lines property and casualty insurance that an exempt commercial policyholder is purchasing, premiums for expiring policies for which the insurer is not offering insurance shall be used as the basis for premium determination. If not all policies for a policyholder have a common inception date, premium for policies that are in force as of the inception date of coverage for which the calculation is made shall be used. For policies that the insurer does not write, the insurer shall only use premiums for which policyholder documentation is provided. If an insurer is not provided with policyholder documentation of the premiums for policies that the insurer does not write, then the insurer shall not include premiums for such policies to determine whether a policyholder is a Class RF, RFS, or R policyholder.

007.02 Retrospectively determined premium

For purposes of determining whether a policyholder is a Class RF, RFS or R policyholder, if a policy's premium will be determined retrospectively, then it shall be calculated as if the policyholder were rated on a guaranteed cost basis. Exempt commercial policyholder status shall not be retroactively denied if actual losses incurred under the policy result in an actual premium lower than the estimated premium calculated on a guaranteed cost basis.

007.03 Premium based on auditable exposures

For purposes of determining whether a policyholder is a Class RF, RFS or R policyholder, if a policy's premium is determined based on exposures that are subject to audit as defined in the policy, then it shall be calculated using a good faith estimate of exposures. Exempt commercial policyholder status shall not be retroactively denied if the audited exposures result in a premium that is lower than the estimated premium.