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 161.7 - Filing of rates and the relation and role of rate service organizations

Universal Citation: 11 NY Comp Codes Rules and Regs § 161.7

Current through Register Vol. 46, No. 39, September 25, 2024

(a) In connection with adoption by an insurer of rates published by a rate service organization:

(1) Whenever, pursuant to this Part, the superintendent prior approves a rate or loss cost filed by a rate service organization on behalf of its members and subscribers, those members and subscribers using or deviating from the rate service organization rates or loss costs, and which have given the rate service organization appropriate filing authority, may adopt such revisions without further prior approval, provided that such adoption is made effective within 90 days of the effective date of the rate service organization revision.

(2) Insurers that are not members or subscribers of the rate service organization, as well as those members and subscribers which do not elect to adopt the revision within 90 days, may not implement a prior-approved rate service organization rate or loss cost revision, that prior approval notwithstanding, without the specific prior approval of the superintendent.

(b) Insurers adopting prior-approved rate service organization rate or loss cost revisions may not simultaneously adopt any changes in deviations from the rate service organization rates or any modification of a rate service organization's loss costs, or effect any change in the insurer's expected loss ratio, which would have the effect of increasing or decreasing the insurer's rates by more than the percentage approved for the rate service organization rate or loss cost revision, and must obtain prior approval in order to implement any such change. (For example, for a market subject to a +-20-percent flex-band, should a rate service organization obtain prior approval for a 25- percent rate increase, an insurer with a current 10-percent downward deviation could maintain its deviation and adopt the filing, but could not, without obtaining independent prior approval, eliminate this deviation.)

(c) No rate filing, whether made by an insurer or by a rate service organization, and whether or not prior approval is required, shall remain effective for use (or deviation) by insurers more than three years after the effective date of the particular insurer's or rate service organization's rate filing. Every insurer and rate service organization shall update each of its rate filings, or file a statement with the department that its analysis indicates that no updating is appropriate, at least once every three years.

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