Utah Code 31A-19a-408. Procedures for workers’ compensation tiered rate filings
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(1) Notwithstanding Section 31A-19a-214 and subject to the other provisions of this section, a workers’ compensation insurer may file with the commissioner a rate filing for workers’ compensation insurance that provides for a plan with more than one rate tier for a single insurer or an insurer group with common ownership if the filing shows that:
Terms Used In Utah Code 31A-19a-408
- Expenses: means that portion of a rate attributable to:(4)(a) acquisition;(4)(b) field supervision;(4)(c) collection expenses;(4)(d) general expenses;(4)(e) taxes;(4)(f) licenses; and(4)(g) fees. See Utah Code 31A-19a-102
- Filing: when used as a noun, means an item required to be filed with the department including:
(70)(a) a policy;(70)(b) a rate;(70)(c) a form;(70)(d) a document;(70)(e) a plan;(70)(f) a manual;(70)(g) an application;(70)(h) a report;(70)(i) a certificate;(70)(j) an endorsement;(70)(k) an actuarial certification;(70)(l) a licensee annual statement;(70)(m) a licensee renewal application;(70)(n) an advertisement;(70)(o) a binder; or(70)(p) an outline of coverage. See Utah Code 31A-1-301- Insurance: includes :
(96)(b)(i) a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;(96)(b)(ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and(96)(b)(iii) a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301- Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
- Rate: means that cost of insurance per exposure unit either expressed as:
(12)(a)(i) a single number; or(12)(a)(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:(12)(a)(ii)(A) expenses;(12)(a)(ii)(B) profit; and(12)(a)(ii)(C) individual insurer variation in loss experience. See Utah Code 31A-19a-102(1)(a) each tier is established on underwriting rules that are based on criteria that would lead to a logical distinguishing of potential risk; and(1)(b) supporting actuarial analysis or other information that shows a clear distinction between the following for each tier:(1)(b)(i) expected losses and expenses; and(1)(b)(ii) actual losses and expenses.(2) A workers’ compensation insurer shall file with the commissioner an update of the actuarial analysis or other information required under Subsection (1)(b) at least every three years.(3) A workers’ compensation insurer may apply underwriting expertise and judgment in the tier placement process, except that underwriting expertise and judgment shall:(3)(a) be applied in a prudent manner; and(3)(b) when applied, be fair, reasonable, and fully documented. - Filing: when used as a noun, means an item required to be filed with the department including: