20-381

20-381. Definitions

In this article, unless the context otherwise requires:

1. "Advisory organization" means any person other than a single insurer who assists
insurers or rate service organizations in the making of rates by compiling and furnishing
loss or expense statistics or other statistical information and data, or by the
submission of recommendations as to rates, forms or supplementary rate information.
Advisory organization does not include a joint underwriting association, any actuarial or
legal consultant, any employee of an insurer or insurers under common control or
management or their employees or manager.

2. "Loss cost adjustment" means that portion of a rate filed by an insurer with the
director that includes the insurer's general expenses, total product expenses, taxes,
licenses and fee expenses and underwriting profit and contingencies. Loss cost
adjustment does not include loss adjustment expenses or prospective loss costs.

3. "Loss cost modification factor" means that rating factor filed by an insurer
with the director for the purpose of modifying the rate service organization's
prospective loss cost filing.

4. "Prospective loss costs" means the historical aggregate losses and loss
adjustment expenses filed by a rate service organization with the director on which a
portion of a rate is based, adjusted through actuarial trending to a future point in time
and developed to their ultimate values.

5. "Rate" means that cost of insurance per exposure unit whether expressed as a
single number or as a prospective loss cost with an adjustment to account for the
treatment of expenses, profit and individual insurer variation in loss experience before
any application of individual risk variations based on loss or expense
considerations. Rate does not include the minimum premium.

6. "Rate service organization" means any person other than a single insurer who
assists insurers by compiling and furnishing loss or expense statistics and recommending,
making or filing rates, forms or supplementary rate information. Rate service
organization does not include a joint underwriting association, any actuarial or legal
consultant, any employee of an insurer or insurers under common control or management, or
their employees or manager.

7. "Supplementary rate information" means any manual or plan of rates, statistical
plan, classification, rating schedule, minimum premium, policy fee, rating rule, rate
related underwriting rule and any other information used by an insurer in making
rates. Supplementary rate information does not include the final rate pages that combine
the prospective loss costs with the loss cost adjustments.