31A-19a-406. Filing requirements for designated rate service organization.
(1)
The rate service organization designated under Section 31A-19a-404 shall file with the commissioner the following items proposed for use in this state at least 30 calendar days before the day on which the items are distributed to members, subscribers, or others:
Terms Used In Utah Code 31A-19a-406
classification: means the process of grouping risks with similar risk characteristics so that differences in anticipated costs may be recognized. See Utah Code 31A-19a-102
Experience rating: means a rating procedure that:
(a)
uses the past insurance experience of an individual policyholder to forecast the future losses of the policyholder by measuring the policyholder's loss experience against the loss experience of policyholders in the same classification; and
(b)
produces a prospective premium credit, debit, or unity modification. See Utah Code 31A-19a-102
Filed: means that a filing is:
(i)
submitted to the department as required by and in accordance with applicable statute, rule, or filing order;
(ii)
received by the department within the time period provided in applicable statute, rule, or filing order; and
(iii)
accompanied by the appropriate fee in accordance with:
Rate: means that cost of insurance per exposure unit either expressed as:
(i)
a single number; or
(ii)
as a pure premium rate, adjusted before any application of individual risk variations, based on loss or expense considerations to account for the treatment of:
Rate service organization: means a person who assists an insurer in rate making or filing by:
(i)
collecting, compiling, and furnishing loss or expense statistics;
(ii)
recommending, making, or filing rates or supplementary rate information; or
(iii)
advising about rate questions, except as an attorney giving legal advice. See Utah Code 31A-1-301
Rating manual: means any of the following used to determine initial and renewal policy premiums:
(a)
a manual of rates;
(b)
a classification;
(c)
a rate-related underwriting rule; and
(d)
a rating formula that describes steps, policies, and procedures for determining initial and renewal policy premiums. See Utah Code 31A-1-301
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Supporting information: includes one or more of the following:
(a)
data demonstrating actuarial justification for the basic rate factors, classifications, expenses, and profit factors used by the filer;
(b)
the experience and judgment of the filer;
(c)
the experience or data of other insurers or rate service organizations relied upon by the filer;
(d)
the interpretation of any other data relied upon by the filer;
(e)
descriptions of methods used in making the rates; or
(f)
any other information defined by rule as supporting information that is required to be filed. See Utah Code 31A-19a-102
Uniform statistical plan: means a plan that is consistent between all insurers that is used for the reporting of workers' compensation insurance statistical data. See Utah Code 31A-19a-403
(a)
each advisory loss cost with its supporting information;
(b)
the uniform classification plan and rating manual;
(c)
the uniform experience rating plan manual;
(d)
the uniform statistical plan manual; and
(e)
each change, amendment, or modification of any of the items listed in Subsections (1)(a) through (d).
(2)
(a)
If the commissioner believes that advisory loss costs filed violate the excessive, inadequate, or unfair discriminatory standard in Section 31A-19a-201 or any other applicable requirement of this part, the commissioner may require that the rate service organization file additional supporting information.
(b)
If, after reviewing the supporting information, the commissioner determines that the advisory loss costs violate these requirements, the commissioner may:
(i)
require that adjustments to the advisory loss costs be made; or
(ii)
call a hearing for any purpose regarding the filing.
