Ga. Comp. R. & Regs. R. 120-2-38-.08 - Rates, Rating Plans, Rating Systems, Underwriting Rules and Policy Forms for Plan
(1) The rates, rating plans, rating systems,
underwriting rules and policy forms used in connection with the Plan shall be
the rates, rating plans, rating systems, underwriting rules and policy forms
filed by the Administrator and approved by the Commissioner.
(2) The Administrator shall maintain
necessary ratemaking data in order to permit the actuarial determination of
rates and rating plans appropriate for the business insured through the Plan,
shall monitor both rate adequacy and Plan results, and shall notify the
Commissioner if excessive losses are indicated to enable the Commissioner to
take corrective action.
(3) The
intended purpose of this section is to provide rates in the Plan that are
adequate, not excessive and not unfairly discriminatory and which will allow
the Plan to operate as a self-funded mechanism.
(4) For Plan policies with effective dates on
or after January 1, 1996, the Commissioner shall approve and implement a plan
which establishes rates adequate to eliminate any Plan operating deficit by
January 1, 1999. In this Plan, the Commissioner shall also consider expense
saving items which may improve the operating results of the Plan.
(5) Any Plan operating deficit generated from
Plan policy years prior to January 1, 1996 shall not be passed along to current
or future Plan policy holder. Any such deficit shall be fulfilled pursuant to
the plan of operation in effect at that time.
(6) The Administrator shall include necessary
ratemaking data in each rate filing with the Commissioner to sufficiently
support such filing. This shall include information concerning loss development
and trend, expenses, and investment income. The Administrator shall also, upon
request, provide any other information needed to assist the Commissioner in his
review of each rate filing.
(7) The
following system of credits shall be granted by the Administrator against
assessment or participation of Insurers in the Plan for the voluntary writing
of a Risk whose immediate prior Insusrer for a period of at least one year was
the Plan. The system of credits shall apply for a period of time specified in
the Administrator's filing and approved by the Commissioner:
(a) For policies with an annual premium of
$7,500 or less, a credit of four times the amount of such annual
premium;
(b) For policies with an
annual premium of at least $7,501, but not exceeding $15,000, a credit of three
times the amount of such annual premium;
(c) For policies with an annual premium of at
least $15,001, but not exceeding $25,000, a credit of two times the amount of
such annual premium;
(d) For
policies with an annual premium of at least $25,001, but not exceeding
$200,000, a credit of one and one-half times the amount of such annual premium;
and
(e) For policies with an annual
premium of $200,001 or greater, a credit of the amount of such annual
premium.
(8) The
Commissioner shall annually submit a report to the General Assembly. To assist
the Commissioner in this responsibility, the Administrator shall provide, by
September 1 of each year, estimated Plan operating surpluses or deficits, Plan
premium and size distributions, results of the three tier rating program,
effect of the Servicing Carrier remedial program, results of Servicing Carrier
incentives and disincentives, and any other information that the Commissioner
deems necessary to evaluate the Plan.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.