§ 58-53-60. Premium.
§58‑53‑60. Premium.
(a) The premium for theconverted policy or group conversion trust certificate shall be determined inaccordance with the insurer's table of premium rates applicable to the age andclass of risk to be covered under that policy and to the type and amount ofinsurance provided.
(b) All insurerslicensed to do business in this State, who issue conversion policies or groupconversion trust certificates under this Part, have the right to increase thatelement of the premium that applies to hospital room and board benefitincreases provided for in G.S. 58‑53‑95(5) by an amountproportionate to the increase promulgated by the Commissioner. Such premiumincreases shall be filed with the Commissioner.
(c) All premium ratesand adjustments to premium rates for converted policies or group conversiontrust certificates shall be reasonable and must be filed with and approved bythe Commissioner prior to use. A premium rate shall be deemed to be reasonableif the insurer demonstrates that the premium charged is expected to produce anincurred loss ratio to earned premiums of not less than sixty percent (60%) forall policies or group conversion trust certificates providing similar benefitsoffered and issued by the insurer. If an insurer experiences an incurred lossratio of greater than eighty percent (80%) for all such policies, it shall bedeemed reasonable for that insurer to increase premium rates to a level thatwill produce a prospective incurred loss ratio of no greater than eightypercent (80%), and the insurer shall file such new rates with the Commissionernot more often than once a year. (1981, c. 706, s. 1; 1983, c.669; 1995, c. 517, s. 30.)