20-358. Disapproval of rates
A. If at any time the director finds that a filing does not meet the standards set
forth in section 20-356, he shall, after a hearing held upon not less than ten days'
written notice, in which he shall specify the matters to be considered at such hearing,
to every insurer and rating organization which made the filing, issue an order specifying
in what respects he finds that the filing fails to meet the requirements of the rate
regulatory provisions of this article, and stating when, within a reasonable period
thereafter, the filing or rating system shall be deemed no longer effective. Copies of
the order shall be sent to every such insurer and rating organization. The order shall
not affect any contract or policy made or issued prior to the expiration of the period
set forth therein.
B. Any person or organization aggrieved with respect to any filing or rating system
which is in effect may make written application to the director for a hearing thereon,
but the insurer or rating organization which made the filing or uses the rating system
shall not be authorized to proceed under this subsection. The application shall specify
the grounds to be relied upon by the applicant. If the director finds that the
application is made in good faith, that the applicant would be so aggrieved if his
grounds are established and that the grounds otherwise justify holding such a hearing, he
shall within thirty days after receipt of the application hold a hearing upon not less
than ten days' written notice to the applicant and to every insurer and rating
organization which made such filing or uses such rating system. If, after the hearing,
the director finds that the filing or rating system does not meet the requirements of the
rate regulatory provisions of this article, he shall issue an order specifying in what
respects he finds that it fails to meet such requirements and stating when, within a
reasonable period thereafter, it shall be deemed no longer effective. Copies of the
order shall be sent to the applicant and to every such insurer and rating
organization. The order shall not affect any contract or policy made or issued prior to
the expiration of the period set forth therein.
C. No manual of classifications, rules, rating plan or any modification of any of
the foregoing which establishes standards for measuring variations in hazards or expense
provisions, or both, and which is being used pursuant to the requirements of section
20-356, shall be disapproved if the rates thereby produced meet the requirements of the
rate regulatory provisions of this article.
D. The director may utilize independent contractor examiners experienced in the
review of applicable rates and reserves pursuant to sections 20-148 and 20-159 to
implement the provisions of this article. All examination and examination related
expenses shall be borne by the insurer and shall be paid by the insurance examiners'
revolving fund pursuant to section 20-159.
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