Idaho Admin. Code r. 18.03.05.019 - USE OF RATES - DIRECT BUSINESS ONLY
01.
Use of
Prima Facie Rates. An insurer that files rates or has rates on file not
in excess of the prima facie rates shown in Section
014, to the extent adjusted
pursuant to Section 018, may use
those rates without further proof of their reasonableness. (3-31-22)
02.
Use of Rates Higher Than Prima
Facie Rates. An insurer may file for approval of and use rates higher
than the prima facie rates established pursuant to Section
018, to the extent adjusted, if it
can be expected that the use of such higher rates will result in a ratio of
claims incurred to premiums earned (assuming the use of such higher rates) not
less than fifty percent (50%) for those accounts to which such higher rates
apply and that such upward deviations will not result on a statewide basis for
that insurer of a ratio of claims incurred to premiums earned of less than the
expected loss ratio underlying the current prima facie rate developed or
adjusted pursuant to Section
018. If rates higher than the prima
facie rates shown in Section
014, to the extent adjusted
pursuant to Section 018, are
filed for approval, the filing will specify the accounts to which such rates
apply. Such rates may be: (3-31-22)
a. Applied
uniformly to all accounts of the insurer; or (3-31-22)
b. Applied on an equitable basis approved by
the Director to only one (1) or more accounts of the insurer for which the
experience has been less favorable than expected; or (3-31-22)
c. Applied according to a case-rating
procedure on file with the director. (3-31-22)
03.
Approval Period of Deviated
Rates. (3-31-22)
a. A deviated rate
will be in effect for a period of time not longer than the experience period
used to establish such rate (i.e. one (1) year, two (2) years or three (3)
years). An insurer may file for a new rate before the end of a rate period, but
not more often than once during any twelve-month (12) period.
(3-31-22)
b. Notwithstanding
Subsection 019.01, if an account changes
insurers, that rate approved to be used for the account by the prior insurer is
the maximum rate that may be used by the succeeding insurer for the remainder
of the rate approval period approved for the prior insurer or until a new rate
is approved for use on such account, if sooner. (3-31-22)
04.
Use of Rates Lower Than Filed
Rates. An insurer may at any time use a rate for an account lower than
its filed rate without prior notice, justification and approval by the
director. (3-31-22)
05.
Terms
and Definitions Applicable to This Section. (3-31-22)
a. "Experience" means "earned premiums" and
"incurred claims" during the experience period. (3-31-22)
b. "Experience Period" means the most recent
period of time for which experience is reported, but not for a period longer
than three (3) full years. (3-31-22)
c. "Incurred Claims" means total claims paid
during the experience period, adjusted for the change in claim reserve.
(3-31-22)
Notes
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