38.2-2003 - Rate filings by insurer; supporting information.
§ 38.2-2003. Rate filings by insurer; supporting information.
A. Each insurer writing in this Commonwealth a class of insurance to whichthis chapter applies shall file with the Commission every manual ofclassifications, minimum rate, class rate, rating schedule, rating plan,rating rule, and every modification of any of the foregoing that it proposesto use. Every filing shall indicate the character and extent of coveragecontemplated. When a filing is not accompanied by the information upon whichthe insurer supports the filing, and the Commission does not have sufficientinformation to determine whether the filing meets the requirements of thischapter, the Commission may require the insurer to furnish the informationupon which it supports the filing. A filing and any supporting informationshall be a public record. Upon filing any rate to which this chapter isapplicable, the insurer shall give notice to the Division of Consumer Counselof the Office of the Attorney General that such rate has been filed with theCommission and such insurer shall so certify to the Commission in its ratefiling. For the purposes of this section, a group or fleet of insurersoperating under the same general management may be considered an insurer.
B. Each insurer shall submit with each rate filing so much of the followinginformation as deemed appropriate by the Commission:
1. Number of exposures;
2. Direct premiums written;
3. Direct premiums earned;
4. Direct losses paid identified by such period as the Commission may require;
5. Number of claims paid;
6. Direct losses incurred during the year, direct losses incurred during theyear which occurred and were paid during the year, and direct losses incurredduring the year which were reported during the year but were not yet paid;
7. Any loss development factor used and supporting data thereon;
8. Number of claims unpaid;
9. Loss adjustment expenses paid identified by such period as the Commissionmay require;
10. Loss adjustment expenses incurred during the year, loss adjustmentexpenses incurred during the year for losses which occurred and were paidduring the year, and loss adjustment expenses incurred during the year forlosses which were reported during the year but were not yet paid;
11. Other expenses incurred, separately by category of expense, excludingloss adjustment expenses;
12. Investment income on assets related to reserve and allocated surplusaccounts;
13. Total return on allocated surplus;
14. Any loss trend factor used and supporting data thereon;
15. Any expense trend factor used and supporting data thereon; and
16. Such other information as may be required by rule of the Commission,including statewide rate information presented separately for Virginia andeach state wherein the insurer writes the line, subline or ratingclassification for which the rate filing is made and which the Commissiondeems necessary for its consideration.
C. Where actual experience does not exist or is not credible, the Commissionmay allow the use of estimates for the information required by subdivisions 1through 15 of subsection B of this section and may require the insurer tosubmit such information as the Commission deems necessary to support suchestimates.
D. The Commission shall develop uniform statements or formats specifying theinformation categories specified in this section. Such statements or formatsshall be utilized by all insurers in all rate filings.
E. In determining the appropriateness of rates for credit involuntaryunemployment insurance and credit property insurance, the Commission may notapprove any rate that is calculated based upon loss experience producing aloss ratio of less than forty percent on and after January 1, 2001,forty-five percent on and after January 1, 2003, and fifty percent on andafter January 1, 2005. For the purposes of this subsection, loss experienceincludes: paid losses, paid loss adjustment expense, any change in casereserves, change in incurred but not reported losses, and any specialconsiderations for catastrophe or comprehensive coverage.
(Code 1950, §§ 38-253.26, 38-253.72; 1950, p. 381; 1952, c. 317, § 38.1-241;1972, c. 836; 1973, c. 504; 1986, c. 562; 1987, c. 697; 1988, c. 189; 2000,c. 526.)