Current through Register Vol. 38, No. 18, March 15, 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.