North Carolina Administrative Code
Title 11 - INSURANCE
Chapter 10 - PROPERTY AND CASUALTY DIVISION
Section .1100 - RATE FILINGS
Section 10 .1106 - DEVIATIONS FROM RATES OF THE NORTH CAROLINA RATE BUREAU
Universal Citation: 11 NC Admin Code 10 .1106
Current through Register Vol. 39, No. 6, September 16, 2024
(a) Definitions:
(1) Rate deviation refers to the entire
collection of differences from the Rate Bureau rates and rating plan that a
company has implemented or proposes to implement. Deviation and aggregate
deviation are used synonymously. A company shall have only one rate deviation
from each Rate Bureau filing and rating plan.
(2) Deviation component refers to any
individual part of the aggregate deviation. A deviation component may involve a
coverage difference, a different territorial relativity, a different class
relativity, a different rate for a particular type of insured, etc. Proposed
differences in territorial and class relativities (and other similarly related
sets of rating factors) shall be treated as one deviation component.
(3) Introduction of a deviation means that a
company has no current rate deviation on file for the particular line but is
proposing to implement one.
(4)
Modification of a deviation means that a company has a current rate deviation
on file for the particular line and that the company proposes to add, change,
or eliminate one of the components of the deviation.
(5) Withdrawal of a deviation means that a
company has a rate deviation on file that it proposes to withdraw in its
entirety.
(b) Filing Guidelines:
(1) All rate deviation filings
must be made in triplicate.
(A) The original
and one copy shall be sent to the Department.
(B) The second copy shall be sent to the
North Carolina Rate Bureau.
(2) A rate deviation shall be introduced,
modified, or withdrawn on an individual company basis even if the company is
part of a group.
(3) All proposed
rate deviations shall be expressed in terms of North Carolina Rate Bureau
rates, either as percentages or as dollar amounts.
(4) Filing requirements differ by type of
deviation action:
(A) To introduce a
deviation, see Paragraph (d) of this Rule.
(B) To modify a deviation, see Paragraph (e)
of this Rule.
(C) To withdraw a
deviation, see Paragraph (f) of this Rule.
(c) Application of Deviations:
(1) On approval of the introduction,
modification, or withdrawal of one or more rate deviations, the department
shall transmit to the company a letter of approval listing all the components
in effect for that line and company.
(2) All deviation components listed shall be
applied to all eligible insureds and deviation components not listed shall not
be applied to any insured.
(3) Rate
deviations remain in effect until modified or withdrawn.
(4) Modifications of existing rate deviations
are permitted at any time.
(5) An
unmodified rate deviation may be withdrawn only if both of the following
conditions have been met:
(A) The deviation
has been in effect for at least six months.
(B) Application for withdrawal is submitted
to the department 15 days before the proposed withdrawal date.
(6) A modified rate deviation may
be withdrawn only if both of the following conditions have been met:
(A) The deviation has been in effect for at
least six months since the date of the last modification.
(B) Application for withdrawal is submitted
to the department 15 days before the proposed withdrawal date.
(d) Filings to introduce rate deviations shall contain only the following information:
(1) A cover letter containing the following:
(A) Company name;
(B) Company's Federal Employer's
Number;
(C) Line of business
involved.
(2) A
completed deviation questionnaire obtained from the Property and Casualty
Division.
(e) Filings to modify rate deviations shall contain only the following information:
(1) A cover letter containing the following:
(A) Company name;
(B) Company's Federal Employer's
Number;
(C) Line of business
involved;
(D) Department file
number.
(2) A completed
deviation questionnaire obtained from the Property and Casualty
Division.
(f) Filing letters for withdrawals of rate deviations. Filing letters for withdrawal shall contain only the following information:
(1) A
cover letter including the following information:
(A) Company name;
(B) Company's Federal Employer's
Number;
(C) Line of business
involved;
(D) Department file
number.
(2) A statement
that the deviation has been in effect for at least six months.
(g) Deviation questionnaires shall contain the following information (if applicable):
(1) Company Name;
(2) Company's Federal Employer's
Number;
(3) Company's file
number;
(4) Line of
insurance;
(5) Subline/Program
title;
(6) Previous Department file
number, if applicable;
(7) Proposed
effective date and rules of implementation;
(8) Company's N.C. volume of
business;
(9) Company's N.C. market
share;
(10) Company's countrywide
volume of business;
(11) Number of
N.C. insureds affected;
(12)
Percentage of N.C. insureds affected;
(13) Total dollar amount of premiums that
will not be collected on an annual basis as a result of this
deviation;
(14) Average dollar
difference per exposure from manual rates;
(15) Maximum deviation;
(16) If the deviation produces a premium
greater than manual for an individual insured, explain;
(17) List of individual deviation components
and the proposed action;
(18)
Certification by a company officer or filings department head; and
(19) Actuarial certification.
Authority
G.S.
58-2-190;
58-36-30(a) and
(c);
Eff. January 1,
1989;
Amended Eff. October 1, 2004; April 1, 2003; February 1,
1991; January 1, 1990;
Pursuant to
G.S.
150B-21.3A, rule is necessary without
substantive public interest Eff. January 3,
2017.
Disclaimer: These regulations may not be the most recent version. North Carolina 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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