Current through Register Vol. 39, No. 6, September 16, 2024
The information required by
G.S.
58-41-50 for those lines of business
described in
11 NCAC
10 .1102 (5) shall be submitted by the
completion of a Rate/Loss Cost Filing Questionnaire and the necessary
supplementary exhibits to which the questionnaire refers.
(1) The Rate/Loss Cost Filing Questionnaire
may contain the following information:
(a)
Name of company/Licensed rating organization;
(b) Filer's Federal Employer's
number;
(c) Filer's file
number;
(d) Type of
filing;
(e) Line(s) of insurance,
as shown on Page 14 of the Annual Statement;
(f) Subline/Program title;
(g) Type of policies involved;
(h) Reasons for the filing;
(i) Proposed effective date and rules of
implementation;
(j) Filer's
approximate market share of North Carolina written premium for the line(s)
involved;
(k) Percentage rate
change proposed;
(l) Estimated
total dollar impact of the filing upon North Carolina policyholders;
(m) Whether the filing will increase the
premium of any North Carolina policyholder;
(n) Type of premium data included;
(o) Exposure unit used;
(p) Type of loss data included;
(q) Permissible loss ratio, permissible loss
and LAE ratio, or permissible loss, LAE, and fixed expense ratio;
(r) Whether any expenses are treated as
fixed;
(s) Credibility
information;
(t) Loss development
information;
(u) Trend
information;
(v) Underwriting
profit information;
(w) Changes in
methodologies;
(x) Certification of
accuracy.
(2) Also
submit supplementary exhibits containing the following information:
(a) The effect of the proposed filing on
active filings affecting the line or subline;
(b) A comparison of current and proposed
rates;
(c) Five-year rate filing
history;
(d) Premium and loss data
(North Carolina and countrywide);
(e) Expense data (North Carolina and
countrywide);
(3) In
filings derived from a rate filing made by a licensed rating organization and
in filings that incorporate without modification loss costs that have been
filed by a licensed rating organization, substitute a supplementary exhibit for
the items in the questionnaire containing the information described in
Subparagraphs (1)(n) through (1)(v).
(a) For
both these types of filings, this exhibit shall contain the following
information:
(i) The name of the licensed
rating organization;
(ii) The
relationship of the company to the licensed rating organization;
(iii) The applicable licensed rating
organization filing;
(iv) The type
of licensed rating organization filing;
(v) Eligibility requirements and restrictions
applicable to the company's filing.
(b) In cases where the licensed rating
organization files final rates, this exhibit shall also identify the basis for
the differences between the company's proposed rates and those filed by the
rating organization.
(c) In cases
where the licensed rating organization files loss costs, this exhibit shall
also contain the following information:
(i)
Permissible loss ratio, permissible loss and LAE ratio, or permissible loss,
LAE, and fixed expense ratio;
(ii)
Whether any expenses are treated as fixed;
(iii) An explanation of the derivation of the
expense provisions and of their incorporation into the final rates;
(iv) Underwriting profit
information.
(4) For loss cost filings made by licensed
rating organizations, the following modifications apply to the requirements in
this Rule:
(a) Substitute percentage loss cost
change proposed in Subparagraph (1)(k).
(b) Omit the information described in
Subparagraphs (1)(j) through (1)(n), (1)(q), (1)(r), and (1)(v) and the items
in Subparagraph (1)(u) relating to premium trend.
(c) In the exhibit described in Subparagraph
(2)(b), compare current and proposed loss costs.
(d) In the exhibit described in Subparagraph
(2)(c), provide a five-year loss cost filing history.
(e) In the exhibit described in Subparagraph
(2)(d), omit those items relating to premium.
(f) Omit the exhibit described in
Subparagraph (2)(e).
(5)
For installment premium payment plan filings, substitute a different
questionnaire, containing the following information:
(a) Name of Company/Licensed rating
organization;
(b) Filer's Federal
Employer Number;
(c) Filer's file
number;
(d) Type of
filing;
(e) Line(s) of
insurance;
(f) Reasons for the
filing;
(g) Proposed effective date
and rules of implementation;
(h)
Filer's approximate market share of North Carolina written premium for the
line(s) involved;
(i) Percentage
rate change proposed;
(j) Estimated
total dollar impact of the filing upon North Carolina policyholders;
(k) A comparison of the current and proposed
installment fees;
(l) Filer's
distribution of number of policies and premium by installment payment
options;
(m) Certification of
accuracy.
Authority
G.S.
58-2-40;
58-41-50;
Eff. January
1, 1990;
Amended Eff. April 1, 1992; December 1, 1990;
Pursuant to
G.S.
150B-21.3A, rule is necessary without
substantive public interest Eff. January 3,
2017.
