Definitions for sections 379.888 to 379.893--notice to insured,when--department to notify insurers.
379.888. 1. As used in sections 379.888 to 379.893, the following termsmean:
(1) "'A' rated risk", any insurance coverage for which rates areindividually determined based upon judgment because neither a rate serviceorganization nor the insurer has yet established a manual rate based uponexperience, except that if a rate service organization or the insurer acquiressufficient experience to establish, or if the insurer itself has, a manualrate for such coverage, then such coverage shall no longer be considered an"A" rated risk for each insurer;
(2) "Base rate", the rate designed to reflect the average aggregateexperience of a particular market, prior to adjustment for individual riskcharacteristics resulting from application of any rating plan;
(3) "Classification", a grouping of insurance risks according to aclassification system used by an insurer;
(4) "Classification system", a schedule of classifications and a rule orset of rules used by an insurer for determining the classification applicableto an insured;
(5) "Commercial casualty insurance", casualty insurance for business ornonprofit interests which is not for personal, family, or household purposes;
(6) "Director", the director of the department of insurance, financialinstitutions and professional registration;
(7) "Rate", a monetary amount applied to the units of exposure basisassigned to a classification and used by an insurer to determine the premiumfor an insured;
(8) "Rating plan", a rule or set of rules used by an insurer tocalculate premium for an insured, and the parameter values used in suchcalculation, after application of classification premium rates to units ofexposure; and
(9) "Rating system", a collection of rating plans to be used by aninsurer, rules for determining which rating plans are applicable to aninsured, a classification system, and other rules used by an insurer fordetermining contractual consideration for insured.
2. Nothing in this section applies to premium increases or decreasesfrom:
(1) Change in hazard of the insured's operation;
(2) Change in magnitude of the exposure basis for the insured,including, without limitation, changes in payroll or sales;
(3) "A" rated risks.
3. Any renewal notice of a commercial casualty insurance policy asdefined in section 379.882 for any Missouri risk or portion thereof whichwould have the effect of increasing the premium charged to the insured due toa change in any scheduled rating factor applied to the policy during theprevious policy period shall contain or be accompanied by a notice to theinsured informing the insured that any inquiry by the insured concerning thechange may be directed to the agent of record or directly to the insurer.When any insured makes a request for information pursuant to this subsection,the insurer, directly or through the insurer's agent, shall inform the insuredin writing in terms sufficiently clear and specific of the basis for anyreduction in a scheduled rating credit or increase in a scheduled rating debitwhich is applied to the policy. Evidence supporting the basis for anyscheduled rating credit or debit shall be retained by the insurer for thepolicy term plus two calendar years pursuant to section 374.205, RSMo. Thedepartment of insurance, financial institutions and professional registrationshall notify commercial casualty insurers of the requirements of this sectionby bulletin.
4. Any renewal involving a "premium alteration requiring notification"as defined in subsection 6 of section 379.321, shall be handled pursuant tothe requirements of that subsection.
Definitions for sections 379.888 to 379.893--notice to insured,when--department to notify insurers.
379.888. 1. As used in sections 379.888 to 379.893, the following termsmean:
(1) "'A' rated risk", any insurance coverage for which rates areindividually determined based upon judgment because neither a rate serviceorganization nor the insurer has yet established a manual rate based uponexperience, except that if a rate service organization or the insurer acquiressufficient experience to establish, or if the insurer itself has, a manualrate for such coverage, then such coverage shall no longer be considered an"A" rated risk for each insurer;
(2) "Base rate", the rate designed to reflect the average aggregateexperience of a particular market, prior to adjustment for individual riskcharacteristics resulting from application of any rating plan;
(3) "Classification", a grouping of insurance risks according to aclassification system used by an insurer;
(4) "Classification system", a schedule of classifications and a rule orset of rules used by an insurer for determining the classification applicableto an insured;
(5) "Commercial casualty insurance", casualty insurance for business ornonprofit interests which is not for personal, family, or household purposes;
(6) "Director", the director of the department of insurance, financialinstitutions and professional registration;
(7) "Rate", a monetary amount applied to the units of exposure basisassigned to a classification and used by an insurer to determine the premiumfor an insured;
(8) "Rating plan", a rule or set of rules used by an insurer tocalculate premium for an insured, and the parameter values used in suchcalculation, after application of classification premium rates to units ofexposure; and
(9) "Rating system", a collection of rating plans to be used by aninsurer, rules for determining which rating plans are applicable to aninsured, a classification system, and other rules used by an insurer fordetermining contractual consideration for insured.
2. Nothing in this section applies to premium increases or decreasesfrom:
(1) Change in hazard of the insured's operation;
(2) Change in magnitude of the exposure basis for the insured,including, without limitation, changes in payroll or sales;
(3) "A" rated risks.
3. Any renewal notice of a commercial casualty insurance policy asdefined in section 379.882 for any Missouri risk or portion thereof whichwould have the effect of increasing the premium charged to the insured due toa change in any scheduled rating factor applied to the policy during theprevious policy period shall contain or be accompanied by a notice to theinsured informing the insured that any inquiry by the insured concerning thechange may be directed to the agent of record or directly to the insurer.When any insured makes a request for information pursuant to this subsection,the insurer, directly or through the insurer's agent, shall inform the insuredin writing in terms sufficiently clear and specific of the basis for anyreduction in a scheduled rating credit or increase in a scheduled rating debitwhich is applied to the policy. Evidence supporting the basis for anyscheduled rating credit or debit shall be retained by the insurer for thepolicy term plus two calendar years pursuant to section 374.205, RSMo. Thedepartment of insurance, financial institutions and professional registrationshall notify commercial casualty insurers of the requirements of this sectionby bulletin.
4. Any renewal involving a "premium alteration requiring notification"as defined in subsection 6 of section 379.321, shall be handled pursuant tothe requirements of that subsection.
Definitions for sections 379.888 to 379.893--notice to insured,when--department to notify insurers.
379.888. 1. As used in sections 379.888 to 379.893, the following termsmean:
(1) "'A' rated risk", any insurance coverage for which rates areindividually determined based upon judgment because neither a rate serviceorganization nor the insurer has yet established a manual rate based uponexperience, except that if a rate service organization or the insurer acquiressufficient experience to establish, or if the insurer itself has, a manualrate for such coverage, then such coverage shall no longer be considered an"A" rated risk for each insurer;
(2) "Base rate", the rate designed to reflect the average aggregateexperience of a particular market, prior to adjustment for individual riskcharacteristics resulting from application of any rating plan;
(3) "Classification", a grouping of insurance risks according to aclassification system used by an insurer;
(4) "Classification system", a schedule of classifications and a rule orset of rules used by an insurer for determining the classification applicableto an insured;
(5) "Commercial casualty insurance", casualty insurance for business ornonprofit interests which is not for personal, family, or household purposes;
(6) "Director", the director of the department of insurance, financialinstitutions and professional registration;
(7) "Rate", a monetary amount applied to the units of exposure basisassigned to a classification and used by an insurer to determine the premiumfor an insured;
(8) "Rating plan", a rule or set of rules used by an insurer tocalculate premium for an insured, and the parameter values used in suchcalculation, after application of classification premium rates to units ofexposure; and
(9) "Rating system", a collection of rating plans to be used by aninsurer, rules for determining which rating plans are applicable to aninsured, a classification system, and other rules used by an insurer fordetermining contractual consideration for insured.
2. Nothing in this section applies to premium increases or decreasesfrom:
(1) Change in hazard of the insured's operation;
(2) Change in magnitude of the exposure basis for the insured,including, without limitation, changes in payroll or sales;
(3) "A" rated risks.
3. Any renewal notice of a commercial casualty insurance policy asdefined in section 379.882 for any Missouri risk or portion thereof whichwould have the effect of increasing the premium charged to the insured due toa change in any scheduled rating factor applied to the policy during theprevious policy period shall contain or be accompanied by a notice to theinsured informing the insured that any inquiry by the insured concerning thechange may be directed to the agent of record or directly to the insurer.When any insured makes a request for information pursuant to this subsection,the insurer, directly or through the insurer's agent, shall inform the insuredin writing in terms sufficiently clear and specific of the basis for anyreduction in a scheduled rating credit or increase in a scheduled rating debitwhich is applied to the policy. Evidence supporting the basis for anyscheduled rating credit or debit shall be retained by the insurer for thepolicy term plus two calendar years pursuant to section 374.205, RSMo. Thedepartment of insurance, financial institutions and professional registrationshall notify commercial casualty insurers of the requirements of this sectionby bulletin.
4. Any renewal involving a "premium alteration requiring notification"as defined in subsection 6 of section 379.321, shall be handled pursuant tothe requirements of that subsection.
