New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter V - Rates And Rating Organizations
Subchapter D - Rate Regulation And Promotion Of Competition
Part 161 - Flexible-rating System; Rating Plans; Tort Reform Refiling Requirements
Section 161.6 - Prior approval situations under flex-rating
Current through Register Vol. 46, No. 39, September 25, 2024
Under the flex-rating system, the superintendent's prior approval of rates is required in the following situations:
(a) Where an insurer or a rate service organization seeks to implement a rate change that exceeds the applicable flex-band.
(b) Where an insurer or a rate service organization seeks to implement a rate change that exceeds the maximum permitted variation for an individual insured. (If a filing proposed changes in class relativities which would result in rate changes ranging from, for example, +40 percent to -12 percent for individual insureds in the affected classes, independent of any other rate changes, the filing would require prior approval.)
(c) Where an insurer or a rate service organization seeks to implement a further rate change in the same direction as a rate change that has already been prior-approved in the 12-month period immediately preceding the effective date of such proposed change.
(d) Where an insurer or rate service organization seeks to implement a rate change when it has already implemented three rate revisions within the applicable flex-band for a particular market during the 12-month period immediately preceding the effective date of such proposed change. (For example, an insurer implemented a three-percent rate increase on November 15, 1986, an additional five-percent increase on March 1, 1987, and another seven-percent rate increase on June 1, 1987, all in regard to the professional liability insurance market. On September 1, 1987, it wishes to implement yet another three-percent rate increase for this same market. Even though the overall rate changes do not exceed the 20-percent flex-band, this last filing would require prior approval, but could be implemented on a file-and-use basis after November 15, 1987.)
(e) Where the rate change affecting one component of a rate filing made by an insurer or a rate service organization exceeds its applicable flex-band and thus is subject to prior approval, the entire filing also requires prior approval.
