Current through August, 2024
Section 1 Purpose
and Authority
This regulation is promulgated pursuant to 8 V.S.A. Sections
75 and
4691.
The purpose of this regulation is to set forth the manner of
reporting and the kinds of data that are to be included in financial and
statistical reports required to be submitted by property and casualty insurance
companies. This regulation shall not be interpreted to limit the powers granted
the Commissioner by any laws or part of laws of this state.
Section 2 Definitions
A. Accelerated Reports: Statistical
information that provides data on a quarterly basis for the purpose of
identifying emerging trends in the commercial liability lines of
insurance.
B. Annual Statement: The
annual report of an insurer as of each December 31 that provides detailed
information on assets and liabilities including data on premiums, losses, and
expenses, dividends, taxes and investments.
C. Fast Track Reports: Information generated
from the NAIC Fast Track Monitoring System that gives a sampling of significant
data for property and casualty insurance on a quarterly basis by insurers
comprising a major segment of the market for the lines of insurance
indicated.
D. Insurance Expense
Exhibit: The supplement to an insurer's annual statement that provides a
detailed analysis of expense on a net basis for all lines of
business.
E. NAIC: The National
Association of Insurance Commissioners.
F. NAIC Diskette Filing Specification:
Instructions for filing of Annual Statement information on diskette.
G. NAIC Statistical Handbook: The publication
of the National Association of Insurance Commissioners (NAIC) that explains
insurance statistical data and details report formats to be furnished by
statistical agents.
H.
Participating Insurer: An insurer licensed to transact the business of property
and casualty insurance in this state which has a market share for a line or
class of insurance greater than the amounts defined in Section 8 and is
therefor required to report on either a quarterly or annual basis.
I. Statistical Agent: An organization
designated by the Commissioner to gather and compile insurance statistical
experience.
J. Statistical Plan: A
system for collecting and recording insurance premium, loss, exposure and
expense information.
K. State
Statistical Reports: Reports developed by Statistical Agents to supply
information on a regular basis for selected sublines or classes of insurance by
year.
L. Special State Reports:
Reports developed by Statistical Agents on an as needed basis to supply
specific information in the statistical plan requested by the
Commissioner.
M. Special Calls for
Statistical Data: Reports developed on an as needed basis to supply specific
information to the Commissioner that may not be in the statistical
plans.
Section 3 Power
and Duties
The Commissioner may enter into an agreement with any
qualified data collection service corporations, associations or other entities
to undertake the compilation and analysis of data collected pursuant to this
regulation.
Section 4
Financial Reporting
As a condition of doing business in the state, each insurer
licensed to transact the business of property and casualty insurance shall, in
addition to any other reports required, report to the Commissioner financial
data for the preceding year ended December 31:
A. Annual Statement: An Annual Statement
measuring 9"x14" or smaller shall be filed with the Commissioner on or before
March 15th of each year, or a later date if appropriate, that provides
financial information for the previous calendar year. The Annual Statement
shall conform to the format prescribed and modified by the NAIC and shall
contain exhibits and schedules that follow specifications developed by the
NAIC. Information from the insurer's Annual Statement, as specified and in
accordance with the NAIC's Diskette Filing Specification, or as amended, shall
be filed with the Commissioner by filing with the Central Office of the NAIC on
or before March 15th of each year. The requirement to file with the NAIC shall
be in addition to the obligation to file the annual statement with the
Commissioner.
B. Insurance Expense
Exhibit: An Insurance Expense Exhibit shall be filed with the Commissioner on
or before April 1st of each year, or a later date if appropriate, that provides
countrywide information on insurer expenses for the previous calendar year. The
exhibit shall be in the form prescribed and modified by the NAIC. Information
from the insurer's Insurance Expense Exhibit, as specified and in accordance
with the NAIC's Diskette Filing Specification, or as amended, shall be filed
with the Commissioner by filing with the NAIC's Central Office on or before
April 1 each year. The requirement to file with the NAIC shall be in addition
to the obligation to file the annual statement with the Commissioner.
C. Other Schedules and Supplements: In
addition to the above, other schedules or supplements may be requested at the
discretion of the Commissioner including other NAIC schedules.
Section 5 Statistical Reporting by
Companies
Every insurance company licensed to transact the business of
property and casualty insurance in this state shall report its insurance
statistical experience to at least one of the statistical agents designated by
Order of the Commissioner. Such information at a minimum shall be submitted in
the form and detail outlined below and in the statistical plans adopted by the
Commissioner. The statistical agents shall file their plans with the
Commissioner for approval to be effective January 1, 1989. Any subsequent
changes should also be provided to the Commissioner.
A. Annual Data Reporting: At least annually,
insurers shall submit to a statistical agent, data meeting the following
specifications:
(1) Lines of Insurance: The
following lines of insurance shall be included in the annual data:
(a) Automobile-Commercial;
(b) Automobile-Private Passenger;
(c) Boiler and Machinery;
(d) Burglary;
(e) Businessowners;
(f) Commercial Multiple Peril;
(g) Crop-Hail;
(h) Farmowners
(i) Fidelity and Surety;
(j) Fire and Extended Coverage;
(k) General Liability;
(l) Glass;
(m) Homeowners;
(n) Inland Marine;
(o) Personal Property Other than
Homeowners;
(p) Medical
Professional Liability;
(q) Workers
Compensation;
(r) Other lines as
specified by the Commissioner.
(2) Classes of Insurance: Annual data
reported shall include, in addition to the lines of insurance defined above,
those classes of insurance designated for inclusion in accelerated data
reporting.
(3) Data Elements: In
accordance with statistical plans adopted by the Commissioner, annual data
shall include the following elements, detailed by territory where applicable:
(a) premiums written;
(b) losses paid;
(c) allocated loss adjustment expenses
paid;
(d) losses
outstanding;
(e) allocated loss
adjustment expenses outstanding;
(f) number of claims;
(g) exposure, where reported and
meaningful;
(h) other data elements
as specified by the Commissioner.
(4) Compilation Bases: Annual data shall be
reported according to one of the following compilation bases:
(a) calendar year;
(b) accident year;
(c) policy year.
B. Fast Track Data and Reports:
(1) Fast Track Data: Data necessary to
produce Fast Track Reports shall be submitted to statistical agents by selected
insurers within 45 days of the close of the calendar quarter according to the
following specifications:
(a) Lines and
Classes: Loss Ratio Data: Selected insurers shall submit fast track quarterly
premium and loss data to statistical agents for the following Lines:
(i) Private Passenger Liability;
(ii) Private Passenger Physical
Damage;
(iii) Commercial Auto
Liability;
(iv) Commercial Auto
Physical Damage;
(v)
Homeowners;
(vi) Dwelling
Fire;
(vii) Dwelling Allied
Lines;
(viii) Commercial
Fire;
(ix) Commercial Allied
Lines;
(x) Farm Business;
(xi) Commercial Multiple Peril;
(xii) Liability Other than Auto;
(xiii) Medical Malpractice;
(xiv) Other lines as specified by the
Commissioner.
(b) Lines
and Classes: Claim Data: Fast Track data shall contain claim cost and claim
frequency data for the following lines:
(i)
Private Passenger Comprehensive;
(ii) private Passenger Collision;
(iii) Private Passenger Bodily Injury
Liability;
(iv) Private Passenger
property Damage Liability.
(2) Fast Track Reports: Statistical agents
shall provide Fast Track Reports within 60 days of the close of the calendar
quarter for the Private Passenger Automobile and Homeowners lines of insurance.
Fast Track Reports for other lines of business shall be provided within 75 days
of the close of the calendar quarter.
Section 6 Statistical Agent Reporting
Statistical Agents shall provide reports to the Commissioner
on a schedule as specified in this section. If a Statistical Agent cannot
provide the reports as specified in this section, the Statistical Agent shall
inform the Commissioner, who may allow an exemption as described in Section
9.
A. Accelerated Data Reports:
(1) Accelerated Data: Data necessary to
produce Accelerated Reports shall be submitted to statistical agents by
participating insurers within 60 days of the close of the calendar quarter. The
data submitted for accelerated reports shall include the following lines and
classes and data elements:
(a) Lines and
Classes:
(i) Owners, Landlords and Tenants
Liability;
(ii) Manufacturers and
Contractors Liability;
(iii)
Products Liability (countrywide only);
(iv) Premises/Operations Liability;
(v) Liquor Law Liability;
(vi) Lawyers Professional
Liability;
(vii) Municipal
Liability;
(viii) Public School
Liability;
(ix) Day Care
Liability;
(x) Recreational
Liability;
(xi) Other lines and
classes as specified by the Commissioner.
(b) Data Elements:
(i) Direct premiums written;
(ii) Direct premium earned, and;
(iii) Incurred losses, developed as the sum
of the following:
- - the dollar amount of paid losses;
- - the dollar amount of allocated loss adjustment expenses,
plus;
- - reserves for reported claims at the end of the quarter,
minus;
- - reserves for reported claims at the beginning of the
quarter.
(2) Accelerated Data Reports: Statistical
agents shall provide Accelerated Data Reports to the Commissioner within 180
days of the close of the calendar quarter.
B. State Annual Statistical Reports
Approved statistical agents shall produce state statistical
reports and supply them to the Vermont Department of Banking and Insurance
based on a schedule approved by the Commissioner. It is the intent of this
section that the data shall be combined and reported in the aggregate. The
Commissioner may request an insurer to report its data directly to the
Commissioner.
The data submitted for State Statistical Reports shall
include the following lines, classes and data elements:
(1) General Liability: General Liability is a
line of insurance which is typically considered to be liability insurance for
all business and commercial risks other than automobile.
(a) The data elements to be reported include
the following:
(i) Earned Premium;
(ii) Incurred Losses (including Allocated
loss adjustment expense); split between basic and excess limits;
(iii) Incurred Claims;
(iv) Exposures, where reported and
meaningful.
(b) The
reports will be accumulated as follows:
(i) 5
policy years of data; The losses and loss expenses will be evaluated at a
common date as of 3 months past the end of the most recent policy
year.
(ii) Monoline and multiline
combined;
(iii) Class within class
group; except where otherwise specified. All classes are to be reported
including manually rated classes as well as a-rated classes.
(iv) Bodily Injury Liability Losses (BI) and
Property Damage Liability Losses (PD) will be reported separately.
(c) The following sublines will be
reported:
(i) Owners, Landlords, and Tenants
Liability - BI only;
(ii)
Manufacturers and Contractors Liability;
(iii) Products - Countrywide and Vermont data
to be reported. Vermont data will exclude exposures;
(iv) Owners & Contractors Protective
Liability and Contractual Liability - only countrywide data to be
reported;
(v) Excess, Deductible
and other special classes;
(vi)
Composite rated risks;
(vii)
Professional liability other than medical; class detail not to be reported.
Exposure not to be reported;
(viii)
Physicians', surgeons' and dentists' data to be split by claims made vs.
occurrence. Class group detail only;
(ix) Hospitals. Data to be split by claims
made vs. occurrence;
(x) Other
classes as specified by the Commissioner.
(2) Commercial Auto Liability: Commercial
Auto Liability is a line of insurance generally considered to be liability
insurance for trucks, taxis, buses, etc., as well as private passenger cars
owned by businesses.
(a) The data elements to
be reported include the following:
(i) Earned
Premium;
(ii) Incurred losses
(including Allocated loss adjustment expense); split between basic and excess
limits;
(iii) Incurred
Claims;
(iv) Exposures, where
reported and meaningful.
(b) The reports will be accumulated as
follows:
(i) 3 accident years of data, except
for garages where 3 policy years of data will be reported. The losses and loss
expenses will be evaluated at a common date as of 3 months past the end of the
most recent experience period reported;
(ii) Monoline and multiline
combined;
(iii) Class
group;
(iv) Territories will be
reported separately for Commercial cars;
(v) Bodily Injury Liability losses and
Property Damage Liability losses will be reported separately;
(vi) Data for assigned risks will be reported
separately from voluntary risks.
(c) The following sublines will be reported:
(i) Commercial cars;
(ii) Private passenger types;
(iii) Garages;
(iv) Publics and Miscellaneous;
(v) Composite Rated Risks;
(vi) Excess, deductible and other special
classes;
(vii) Zone rated
risks;
(viii) Other classes as
specified by the Commissioner.
(3) Commercial Auto Physical Damage:
Commercial Automobile Physical Damage is a line of insurance generally
considered to be property insurance covering the risk due to loss by collision,
fire, theft, etc., of Commercial Automobiles.
(a) The following data elements will be
reported:
(i) Earned premium;
(ii) Paid losses with no loss adjustment
expense;
(iii) Paid
claims;
(iv) Exposures, where
reported and meaningful.
(b) The reports will be accumulated as
follows:
(i) 3 calendar years of
data;
(ii) Monoline and multiline
combined;
(iii) Class
group;
(iv) All territories will be
combined;
(v) Collision and other
than collision will be reported separately;
(vi) Data for assigned risks will be reported
separately from voluntary risks.
(c) Data will be reported for the following
class groups:
The following sublines will be reported:
(i) Commercial cars;
(ii) Private passenger types;
(iii) Garages;
(iv) Publics and Miscellaneous;
(v) Composite Rated Risks;
(vi) Excess, deductible and other special
classes;
(vii) Zone rated
risks;
(viii) Other classes as
specified by the Commissioner.
(4) Commercial Property: Commercial Property
is generally considered to be first party property insurance covering business
and commercial risks for fire damage, storm damage, and related perils. It is
subdivided into coverages which are: Fire, Extended Coverage (EC), and All
Other Perils (AOP).
(a) The following data
elements will be reported:
(i) Written
premium;
(ii) Earned
premium;
(iii) Incurred
losses;
(iv) Incurred
claims.
(b) The data will
be accumulated as follows:
(i) For fire and
AOP, 5 accident years will be reported;
(ii) For EC, up to 10 accident years will be
reported. The losses for Fire, AOP, and EC will be evaluated at a common
evaluation date 3 months past the end of the most recent accident
year.
(iii) Monoline and multiline
combined;
(iv) Each coverage will
be reported separately.
(c) The class groups to be reported for fire
and EC are:
(i) Apartments;
(ii) Other habitational;
(iii) Restaurants & bars;
(iv) Other Mercantiles;
(v) Public Buildings;
(vi) Churches;
(vii) Schools;
(viii) Offices and banks;
(ix) Recreational facilities;
(x) Hotels & motels;
(xi) Hospitals & Nursing Homes;
(xii) Bldgs under construction;
(xiii) Motor vehicle risks;
(xiv) Other non-manufacturing;
(xv) Storage;
(xvi) Food manufacturing;
(xvii) Wood manufacturing;
(xviii) Wearing apparel;
(xix) Chemical manufacturing;
(xx) Metal manufacturing;
(xxi) Other manufacturing;
(xxii) Other classes as specified by the
Commissioner.
(d) The
class groups to be reported for AOP are:
(i)
Buildings;
(ii) Apartment
contents;
(iii) Office
contents;
(iv) Mercantile,
motel/hotel & institutional contents;
(v) Service industrial/processing &
contractors contents.
C. Special State Reports
The Commissioner may specify special reports that are
required from time to time. These special state reports may include state
statistical reports with additional breakouts of detailed information.
They may also include other items of special interest that
the Commissioner requires.
These special state reports may be requested of any
designated statistical agent. The agent shall supply the report using the
latest available information within a two month time frame. If the statistical
agent cannot supply this report within the two month period, it shall report so
to the Commissioner along with a schedule of when the information will be
supplied.
D. Special Calls
for Statistical Data
The Commissioner may require insurance companies to provide
data not normally reported or collected in the statistical plans after notice
to the statistical agents and providing not less than 30 days for comments.
This data shall be compiled and reported to the Commissioner by the statistical
agents according to a schedule approved by the Commissioner.
Section 7 Data Reporting Media
Data shall be submitted on hard copy or on a magnetic medium
to be specified by the Commissioner.
Section 8 Reporting Thresholds
Insurers shall report in accordance with the following
reporting level thresholds. These thresholds are based on an analysis of
individual insurer premium volume by line and class. Such an analysis shall be
made at least every three years by the statistical agent. Any resulting changes
to an insurer's reporting level will apply on a prospective basis only.
A. General Liability
(1) Quarterly Reporting
(a) An insurer must report at least quarterly
in accordance with the specifications of Commercial General Liability
statistical plans adopted by the commissioner if it is large enough to meet any
of the following criteria:
(i) It is in the
80th percentile of the total Countrywide Written Premium for all Commercial
General Liability lines;
(ii) It
has greater than 1% the Statewide Written Premium for all Commercial General
Liability lines; or
(iii) It has
greater than $ 5 Million Written Premium Statewide for all Commercial general
Liability lines.
(b) An
insurer must report at least quarterly in selected market detail consistent
with the specification of Commercial General Liability statistical plans
adopted by the commissioner if it has not already met the above criteria for
reporting quarterly but does meet any of the following criteria:
(i) It has greater than $ 1 Million Written
Premium Statewide for a selected market; or
(ii) It has greater than 10% Written Premium
Statewide for a selected market and greater than $ 100,000 Written Premium for
that market.
(2) Annual Reporting
(a) An insurer must report at least annually
in accordance with the specifications of Commercial General Liability
statistical plans adopted by the Commissioner if it has not already met the
criteria in (1) (a) for reporting quarterly but it is in the 98th percentile of
the total Statewide Written Premium for all Commercial General Liability
lines.
(b) An insurer must report
at least annually in selected market detail consistent with the specification
of Commercial General Liability statistical plans adopted by the commissioner
if it has not already met any of the above criteria but it has greater than 10%
Written Premium Statewide for a selected market and less than $ 100,000 Written
Premium for that market.
(c) The
experience of all other insurers and any experience not reported in accordance
with sections (1) (a), (1) (b), (2) (a) and (2) (b) above shall be reported
annually in accordance with Commercial General Liability statistical plans
adopted by the Commissioner.
(d)
Additional insurers may be required to report if the Commissioner so
designates.
B.
Other Lines
Insurers shall report on a quarterly or annual basis
depending on reporting level thresholds to be established by the
Commissioner.
Section
9 Exemption
Upon application by a statistical agent or an individual
insurer, the Commissioner may allow the submission of a report or statistical
data at a specified later date or with lesser detail if the submission of the
report or data on the date required by this Regulation would create a
substantial hardship on the statistical agent or insurer.
Section 10 Effective Date
This regulation shall be effective January 1,
1989.
Statutory Authority: 8 V.S.A. §§ 75,
4691
