Washington Administrative Code
Title 284 - Insurance Commissioner, Office of the
Chapter 284-34 - Credit life and credit accident and health insurance
Section 284-34-220 - What rates may an insurer use for its direct business?
Current through Register Vol. 24-06, March 15, 2024
(1) An insurer may file rates that are equivalent to the prima facie rates in WAC 284-34-150 and 284-34-170 and use those rates without further proof of their reasonableness.
(2) An insurer must file rates and supporting actuarial documentation if it proposes:
(3) An insurer must file rates in a manner that permits public disclosure of the rates and their application as described in a supporting actuarial memorandum. If an insurer wants the commissioner to withhold experience and proprietary rate development methods from public disclosure to preserve trade secrets or prevent unfair competition, the insurer must:
(4) Any filings that do not include all data and calculations required by this section will be disapproved and returned to the insurer.
(5) An insurer may file rates that are higher than the prima facie rates included in WAC 284-34-150 and 284-34-170. The rates must be adjusted under WAC 284-34-210 and result in benefits that are reasonable in relation to the premium charged. When evaluating deviations, the commissioner will:
(6) The insurer must specify the account or accounts to which the deviated rates apply.
(7) A deviated rate may be applied:
(8) A deviated rate may be in effect for a period no longer than the experience period used to establish the rate (i.e., one-year, two-years or three-years). An insurer may file a new rate before the end of a rate period, but no more than once during any twelve-month period.
(9) A deviated rate may be used only by the insurer that filed the rate. If an account changes insurers, the rates approved for the prior insurer may not be used by the succeeding insurer.
(10) Standard case rating procedure. An insurer may file rates calculated using this standard case rating procedure. If an insurer decides to use this procedure, the insurer must use it to rate all of its credit insurance in this state. Once an insurer selects this procedure, the insurer must continue to use it until a different procedure has been approved by the commissioner.
(11) An insurer may file lower rates at any time. The commissioner must approve those rates before they are used.
(12) These definitions apply to this section:
Credit Life |
Credit Accident and Health Plans Retroactive and Nonretroactive |
Incurred Claim Count |
Credibility Factor |
||||||||
7-day |
14-day |
30-day |
|||||||||
1 |
1 |
1 |
1 |
1 |
0.00 |
||||||
1,800 |
95 |
141 |
209 |
9 |
0.25 |
||||||
2,400 |
126 |
188 |
279 |
12 |
0.30 |
||||||
3,000 |
158 |
234 |
349 |
15 |
0.35 |
||||||
3,600 |
189 |
281 |
419 |
18 |
0.40 |
||||||
4,600 |
242 |
359 |
535 |
23 |
0.45 |
||||||
5,600 |
295 |
438 |
651 |
28 |
0.50 |
||||||
6,600 |
347 |
516 |
767 |
33 |
0.55 |
||||||
7,600 |
400 |
594 |
884 |
38 |
0.60 |
||||||
9,600 |
505 |
750 |
1,116 |
48 |
0.65 |
||||||
11,600 |
611 |
906 |
1,349 |
58 |
0.70 |
||||||
14,600 |
768 |
1,141 |
1,698 |
73 |
0.75 |
||||||
17,600 |
926 |
1,375 |
2,047 |
88 |
0.80 |
||||||
20,600 |
1,084 |
1,609 |
2,395 |
103 |
0.85 |
||||||
25,600 |
1,347 |
2,000 |
2,977 |
128 |
0.90 |
||||||
30,600 |
1,611 |
2,391 |
3,558 |
153 |
0.95 |
||||||
40,000 |
2,106 |
3,125 |
4,651 |
200 |
1.00 |
If either of these measures cannot be accurately determined, the commissioner may accept reasonable approximations.
Statutory Authority: RCW 48.02.060, 48.30.010, 48.34.100, and 48.34.110. 05-02-076 (Matter No. R 2002-02), § 284-34-220, filed 1/4/05, effective 4/1/05.
Reviser's note: The brackets and enclosed material in the text of the above section occurred in the copy filed by the agency.