§431:14-104  Rate filings.  (a)  Everyinsurer shall file with the commissioner every manual of classifications,rules, and rates, every rating plan, every other rating rule, and everymodification of any of the foregoing that it proposes to use; provided thatfilings with regard to specific inland marine risks, which by general custom ofthe business are not written according to manual rate or rating plans, and bailbonds, subject to section 804-62, shall not be required pursuant to thissubsection.

Every filing shall:

(1)  State its proposed effective date;

(2)  Indicate the character and extent of the coveragecontemplated;

(3)  Include a report on investment income; and

(4)  Be accompanied by a $50 fee, payable to thecommissioner, to be deposited in the commissioner's education and trainingfund.

(b)  For each filing, an insurer shall submitto the commissioner:

(1)  An electronic copy of the filing; or

(2)  Two printed copies of the filing. 

The commissioner may also request a printed versionof an electronic filing to be submitted pursuant to paragraph (1).

(c)  At the same time as the filing of therate, every insurer shall file all supplementary rating and supportinginformation to be used in support of or in conjunction with a rate.  The insurermay satisfy its obligation to file supplementary rating and supportinginformation by reference to material which has been approved by thecommissioner.  The information furnished in support of a filing may include orconsist of a reference to:

(1)  The prospective loss cost filing made by arating organization or an advisory organization and approved by thecommissioner;

(2)  The experience or judgment of the insurer orinformation filed by the rating organization or advisory organization on behalfof the insurer as permitted by section 431:14-104.5;

(3)  Its interpretation of any statistical data uponwhich it relies;

(4)  The experience of other insurers, ratingorganizations, or advisory organizations; or

(5)  Any other relevant factors.

(d)  When a filing is not accompanied by theinformation upon which the insurer supports the filing, and the commissionerdoes not have sufficient information to determine whether the filing meets therequirements of this article, the commissioner shall require the insurer tofurnish additional information and, in that event, the waiting period shallcommence as of the date the information is furnished.  Until the requestedinformation is provided, the filing shall not be deemed complete or filed noravailable for use by the insurer.  If the requested information is not providedwithin a reasonable time period, the filing may be returned to the insurer asnot filed and not available for use.

(e)  Except for rates filed in accordance withsubsections (k), (l), and (m), a filing and any supporting information shall beopen to public inspection upon filing with the commissioner.

(f)  Specific inland marine rates on risksspecially rated, made by a rating organization, shall be filed with thecommissioner.

(g)  An insurer may satisfy its obligation tomake the filings by becoming a member of, or a subscriber to, a licensed ratingorganization which makes the filings except for those lines of insurance forwhich the commissioner determines individual insurer rate filings shall bemade.  Nothing contained in this article shall be construed as requiring anyinsurer to become a member of or a subscriber to any rating organization.

(h)  After reviewing an insurer's filing, thecommissioner may require that the insurer's rates be based upon the insurer'sown loss and expense information.  If the insurer's loss or allocated lossadjustment expense information is not actuarially credible, as determined bythe commissioner, the insurer may use or supplement its experience with informationfiled with the commissioner by a rating organization or advisory organization. At the commissioner's request, each insurer utilizing the services of a ratingorganization or advisory organization must submit with its rate filing, adescription of the rationale for that use, including the insurer's owninformation and method of utilizing the rating or advisory organization'sinformation.

(i)  The commissioner shall review filings assoon as reasonably possible after they have been made to determine whether theymeet the requirements of this article.  The commissioner shall calculate theinvestment income and accuracy of loss reserves upon which filings are based,and the insurer shall provide the information necessary to make thecalculation.

(j)  Except as provided herein and insubsections (k) and (l) and section 431:14-120, each filing shall be on filefor a waiting period of thirty days before the filing becomes effective.  Theperiod may be extended by the commissioner for an additional period not toexceed fifteen days if the commissioner gives written notice within the waitingperiod to the insurer, rating organization, or advisory organization that madethe filing that the commissioner needs the additional time for theconsideration of the filing.  Upon the written application by the insurer,rating organization, or advisory organization, the commissioner may authorize afiling which the commissioner has reviewed to become effective before theexpiration of the waiting period or any extension thereof.  A filing shall bedeemed to meet the requirements of this article unless disapproved by thecommissioner within the waiting period or any extension thereof.

(k)  The following rates shall become effectivewhen filed:

(1)  Specific inland marine rates on risks speciallyrated by a rating organization;

(2)  Any special filing with respect to a surety orguaranty bond required by law or by court or executive order or by order orrule of a public body, not covered by a previous filing; and

(3)  Any special filing with respect to any class ofinsurance, subdivision, or combination thereof which is subject to individualrisk premium modification and has been agreed to by an insured under a formalor informal bid process.

The rates shall be deemed to meet the requirementsof this article until the time the commissioner reviews the filing and so longas the filing remains in effect.

(l)  The commissioner, by written order, maysuspend or modify the requirement of filing as to any class of insurance,subdivision, or combination thereof, or as to classes of risks, the rates forwhich cannot practicably be filed before they are used.  The orders shall bemade known to the affected insurers and rating organizations.  The commissionermay make examinations as the commissioner may deem advisable to ascertainwhether any rates affected by the order meet the standards set forth in section431:14-103(a)(1).

(m)  The commissioner may approve a rate on anyspecific risk in excess of that set by an applicable rate filing, provided theinsured files with the commissioner a written application stating the insured'sreasons for consenting to the excess rate.  Upon approval by the commissioner,the rate shall be deemed effective retroactive to the date of the insured's application.

(n)  No insurer shall make or issue a contractor policy except in accordance with filings which are in effect for the insureras provided in this article or in accordance with subsections (k), (l), or(m).  This subsection shall not apply to contracts or policies for inlandmarine risks as to which filings are not required. [L 1987, c 347, pt of §2 assuperseded by c 348, §19; am L 1990, c 255, §9; am L 1993, c 205, §§31, 32; amL 1995, c 234, §19; am L 1997, c 81, §1; am L 1999, c 5, §2; am L 2004, c 122,§60; am L 2006, c 154, §39; am L 2009, c 77, §10]

 

Cross References

 

  Commissioner's education and training fund, see §431:2-214.