§ 58‑36‑15. Filing loss costs, rates, plans with Commissioner; public inspection offilings.
(a) The Bureau shallfile with the Commissioner copies of the rates, loss costs, classificationplans, rating plans and rating systems used by its members. Each rate or losscosts filing shall become effective on the date specified in the filing, butnot earlier than 210 days from the date the filing is received by theCommissioner: Provided that (1) rate or loss costs filings for workers'compensation insurance and employers' liability insurance written in connectiontherewith shall not become effective earlier than 210 days from the date thefiling is received by the Commissioner or on the date as provided in G.S. 58‑36‑100,whichever is earlier; and (2) any filing may become effective on a date earlierthan that specified in this subsection upon agreement between the Commissionerand the Bureau.
(b) A filing shall beopen to public inspection immediately upon submission to the Commissioner.
(c) The Bureau shall maintainreasonable records, of the type and kind reasonably adapted to its method ofoperation, of the experience of its members and of the data, statistics orinformation collected or used by it in connection with the rates, rating plans,rating systems, loss costs and other data as specified in G.S. 58‑36‑100,underwriting rules, policy or bond forms, surveys or inspections made or usedby it.
(d) With respect to thefiling of rates for nonfleet private passenger motor vehicle insurance, theBureau shall, on or before February 1 of each year, or later with the approvalof the Commissioner, file with the Commissioner the experience, data,statistics, and information referred to in subsection (c) of this section andany proposed adjustments in the rates for all member companies of the Bureau.The filing shall include, where deemed by the Commissioner to be necessary forproper review, the data specified in subsections (c), (e), (g) and (h) of thissection. Any filing that does not contain the data required by this subsectionmay be returned to the Bureau and not be deemed a proper filing. Provided,however, that if the Commissioner concludes that a filing does not constitute aproper filing he shall promptly notify the Bureau in writing to that effect,which notification shall state in reasonable detail the basis of theCommissioner's conclusion. The Bureau shall then have a reasonable time toremedy the defects so specified. An otherwise defective filing thus remediedshall be deemed to be a proper and timely filing, except that all periods oftime specified in this Article will run from the date the Commissioner receivesadditional or amended documents necessary to remedy all material defects in theoriginal filing.
(d1) With respect toproperty insurance rates, the Bureau shall file no later than May 1, 2010, aschedule of credits for policyholders based on the presence of mitigation andconstruction features and on the condition of buildings that it insures in thebeach and coastal areas of the State. The Bureau shall develop rules applicableto the operation of the schedule and the mitigation program with approval bythe Commissioner. The schedule shall not be unfairly discriminatory and shallbe reviewed by the Bureau annually, with the results reported annually to theCommissioner.
(e) The Commissionermay require the filing of supporting data including:
(1) The Bureau'sinterpretation of any statistical data relied upon;
(2) Descriptions of themethods employed in setting the rates;
(3) Analysis of theincurred losses submitted on an accident year or policy year basis into theircomponent parts; to wit, paid losses, reserves for losses and loss expenses,and reserves for losses incurred but not reported;
(4) The total number anddollar amount of paid claims;
(5) The total number anddollar amount of case basis reserve claims;
(6) Earned and writtenpremiums at current rates by rating territory;
(7) Earned premiums andincurred losses according to classification plan categories; and
(8) Income frominvestment of unearned premiums and loss and loss expense reserves generated bybusiness within this State.
Provided, however, that withrespect to business written prior to January 1, 1980, the Commissioner shallnot require the filing of such supporting data which has not been required tobe recorded under statistical plans approved by the Commissioner.
(f) On or beforeSeptember 1 of each calendar year, or later with the approval of theCommissioner, the Bureau shall submit to the Commissioner the experience, data,statistics, and information referred to in subsection (c) of this section andrequired under G.S. 58‑36‑100 and a residual market rate orprospective loss costs review based on those data for workers' compensationinsurance and employers' liability insurance written in connection therewith.Any rate or loss costs increase for that insurance that is implemented underthis Article shall become effective solely to insurance with an inception dateon or after the effective date of the rate or loss costs increase.
(g) The followinginformation must be included in policy form, rule, and rate or loss costsfilings under this Article and under Article 37 of this Chapter:
(1) A detailed list ofthe rates, loss costs, rules, and policy forms filed, accompanied by a list ofthose superseded; and
(2) A detaileddescription, properly referenced, of all changes in policy forms, rules,prospective loss costs, and rates, including the effect of each change.
(h) Except to theextent the Commissioner determines that this subsection is inapplicable tofilings made under G.S. 58‑36‑100 and except for filings made underG.S. 58‑36‑30, all policy form, rule, prospective loss costs, andrate filings under this Article and Article 37 of this Chapter that are basedon statistical data must be accompanied by the following properly identifiedinformation:
(1) North Carolinaearned premiums at the actual and current rate level; losses and lossadjustment expenses, each on paid and incurred bases without trending or othermodification for the experience period, including the loss ratio anticipated atthe time the rates were promulgated for the experience period;
(2) Credibility factordevelopment and application;
(3) Loss developmentfactor derivation and application on both paid and incurred bases and in bothnumbers and dollars of claims;
(4) Trending factordevelopment and application;
(5) Changes in premiumbase resulting from rating exposure trends;
(6) Limiting factordevelopment and application;
(7) Overhead expensedevelopment and application of commission and brokerage, other acquisitionexpenses, general expenses, taxes, licenses, and fees;
(8) Percent rate orprospective loss costs change;
(9) Final proposedrates;
(10) Investment earnings,consisting of investment income and realized plus unrealized capital gains,from loss, loss expense, and unearned premium reserves;
(11) Identification ofapplicable statistical plans and programs and a certification of compliancewith them;
(12) Investment earningson capital and surplus;
(13) Level of capital andsurplus needed to support premium writings without endangering the solvency ofmember companies; and
(14) Such otherinformation that may be required by any rule adopted by the Commissioner.
Provided, however, that no filingmay be returned or disapproved on the grounds that such information has notbeen furnished if insurers have not been required to collect such informationpursuant to statistical plans or programs or to report such information to theBureau or to statistical agents, except where the Commissioner has givenreasonable prior notice to the insurers to begin collecting and reporting suchinformation, or except when the information is readily available to theinsurers.
(i) The Bureau shallfile with and at the time of any rate or prospective loss costs filing alltestimony, exhibits, and other information on which the Bureau will rely at thehearing on the rate filing. The Department shall file all testimony, exhibits,and other information on which the Department will rely at the hearing on therate filing 20 days in advance of the convening date of the hearing. Upon theissuance of a notice of hearing the Commissioner shall hold a meeting of theparties to provide for the scheduling of any additional testimony, including writtentestimony, exhibits or other information, in response to the notice of hearingand any potential rebuttal testimony, exhibits, or other information. Thissubsection also applies to rate filings made by the North Carolina MotorVehicle Reinsurance Facility under Article 37 of this Chapter. (1977, c. 828, s. 6; 1979,c. 824, s. 2; 1981, c. 521, s. 1; 1985, c. 666, s. 3; 1985 (Reg. Sess., 1986),c. 1027, ss. 2, 3; 1993, c. 409, s. 10; 1995, c. 505, s. 2; 1999‑132, ss.3.4‑3.6; 2002‑187, s. 4.1; 2009‑472, s. 3.)
§ 58‑36‑15. Filing loss costs, rates, plans with Commissioner; public inspection offilings.
(a) The Bureau shallfile with the Commissioner copies of the rates, loss costs, classificationplans, rating plans and rating systems used by its members. Each rate or losscosts filing shall become effective on the date specified in the filing, butnot earlier than 210 days from the date the filing is received by theCommissioner: Provided that (1) rate or loss costs filings for workers'compensation insurance and employers' liability insurance written in connectiontherewith shall not become effective earlier than 210 days from the date thefiling is received by the Commissioner or on the date as provided in G.S. 58‑36‑100,whichever is earlier; and (2) any filing may become effective on a date earlierthan that specified in this subsection upon agreement between the Commissionerand the Bureau.
(b) A filing shall beopen to public inspection immediately upon submission to the Commissioner.
(c) The Bureau shall maintainreasonable records, of the type and kind reasonably adapted to its method ofoperation, of the experience of its members and of the data, statistics orinformation collected or used by it in connection with the rates, rating plans,rating systems, loss costs and other data as specified in G.S. 58‑36‑100,underwriting rules, policy or bond forms, surveys or inspections made or usedby it.
(d) With respect to thefiling of rates for nonfleet private passenger motor vehicle insurance, theBureau shall, on or before February 1 of each year, or later with the approvalof the Commissioner, file with the Commissioner the experience, data,statistics, and information referred to in subsection (c) of this section andany proposed adjustments in the rates for all member companies of the Bureau.The filing shall include, where deemed by the Commissioner to be necessary forproper review, the data specified in subsections (c), (e), (g) and (h) of thissection. Any filing that does not contain the data required by this subsectionmay be returned to the Bureau and not be deemed a proper filing. Provided,however, that if the Commissioner concludes that a filing does not constitute aproper filing he shall promptly notify the Bureau in writing to that effect,which notification shall state in reasonable detail the basis of theCommissioner's conclusion. The Bureau shall then have a reasonable time toremedy the defects so specified. An otherwise defective filing thus remediedshall be deemed to be a proper and timely filing, except that all periods oftime specified in this Article will run from the date the Commissioner receivesadditional or amended documents necessary to remedy all material defects in theoriginal filing.
(d1) With respect toproperty insurance rates, the Bureau shall file no later than May 1, 2010, aschedule of credits for policyholders based on the presence of mitigation andconstruction features and on the condition of buildings that it insures in thebeach and coastal areas of the State. The Bureau shall develop rules applicableto the operation of the schedule and the mitigation program with approval bythe Commissioner. The schedule shall not be unfairly discriminatory and shallbe reviewed by the Bureau annually, with the results reported annually to theCommissioner.
(e) The Commissionermay require the filing of supporting data including:
(1) The Bureau'sinterpretation of any statistical data relied upon;
(2) Descriptions of themethods employed in setting the rates;
(3) Analysis of theincurred losses submitted on an accident year or policy year basis into theircomponent parts; to wit, paid losses, reserves for losses and loss expenses,and reserves for losses incurred but not reported;
(4) The total number anddollar amount of paid claims;
(5) The total number anddollar amount of case basis reserve claims;
(6) Earned and writtenpremiums at current rates by rating territory;
(7) Earned premiums andincurred losses according to classification plan categories; and
(8) Income frominvestment of unearned premiums and loss and loss expense reserves generated bybusiness within this State.
Provided, however, that withrespect to business written prior to January 1, 1980, the Commissioner shallnot require the filing of such supporting data which has not been required tobe recorded under statistical plans approved by the Commissioner.
(f) On or beforeSeptember 1 of each calendar year, or later with the approval of theCommissioner, the Bureau shall submit to the Commissioner the experience, data,statistics, and information referred to in subsection (c) of this section andrequired under G.S. 58‑36‑100 and a residual market rate orprospective loss costs review based on those data for workers' compensationinsurance and employers' liability insurance written in connection therewith.Any rate or loss costs increase for that insurance that is implemented underthis Article shall become effective solely to insurance with an inception dateon or after the effective date of the rate or loss costs increase.
(g) The followinginformation must be included in policy form, rule, and rate or loss costsfilings under this Article and under Article 37 of this Chapter:
(1) A detailed list ofthe rates, loss costs, rules, and policy forms filed, accompanied by a list ofthose superseded; and
(2) A detaileddescription, properly referenced, of all changes in policy forms, rules,prospective loss costs, and rates, including the effect of each change.
(h) Except to theextent the Commissioner determines that this subsection is inapplicable tofilings made under G.S. 58‑36‑100 and except for filings made underG.S. 58‑36‑30, all policy form, rule, prospective loss costs, andrate filings under this Article and Article 37 of this Chapter that are basedon statistical data must be accompanied by the following properly identifiedinformation:
(1) North Carolinaearned premiums at the actual and current rate level; losses and lossadjustment expenses, each on paid and incurred bases without trending or othermodification for the experience period, including the loss ratio anticipated atthe time the rates were promulgated for the experience period;
(2) Credibility factordevelopment and application;
(3) Loss developmentfactor derivation and application on both paid and incurred bases and in bothnumbers and dollars of claims;
(4) Trending factordevelopment and application;
(5) Changes in premiumbase resulting from rating exposure trends;
(6) Limiting factordevelopment and application;
(7) Overhead expensedevelopment and application of commission and brokerage, other acquisitionexpenses, general expenses, taxes, licenses, and fees;
(8) Percent rate orprospective loss costs change;
(9) Final proposedrates;
(10) Investment earnings,consisting of investment income and realized plus unrealized capital gains,from loss, loss expense, and unearned premium reserves;
(11) Identification ofapplicable statistical plans and programs and a certification of compliancewith them;
(12) Investment earningson capital and surplus;
(13) Level of capital andsurplus needed to support premium writings without endangering the solvency ofmember companies; and
(14) Such otherinformation that may be required by any rule adopted by the Commissioner.
Provided, however, that no filingmay be returned or disapproved on the grounds that such information has notbeen furnished if insurers have not been required to collect such informationpursuant to statistical plans or programs or to report such information to theBureau or to statistical agents, except where the Commissioner has givenreasonable prior notice to the insurers to begin collecting and reporting suchinformation, or except when the information is readily available to theinsurers.
(i) The Bureau shallfile with and at the time of any rate or prospective loss costs filing alltestimony, exhibits, and other information on which the Bureau will rely at thehearing on the rate filing. The Department shall file all testimony, exhibits,and other information on which the Department will rely at the hearing on therate filing 20 days in advance of the convening date of the hearing. Upon theissuance of a notice of hearing the Commissioner shall hold a meeting of theparties to provide for the scheduling of any additional testimony, including writtentestimony, exhibits or other information, in response to the notice of hearingand any potential rebuttal testimony, exhibits, or other information. Thissubsection also applies to rate filings made by the North Carolina MotorVehicle Reinsurance Facility under Article 37 of this Chapter. (1977, c. 828, s. 6; 1979,c. 824, s. 2; 1981, c. 521, s. 1; 1985, c. 666, s. 3; 1985 (Reg. Sess., 1986),c. 1027, ss. 2, 3; 1993, c. 409, s. 10; 1995, c. 505, s. 2; 1999‑132, ss.3.4‑3.6; 2002‑187, s. 4.1; 2009‑472, s. 3.)
§ 58‑36‑15. Filing loss costs, rates, plans with Commissioner; public inspection offilings.
(a) The Bureau shallfile with the Commissioner copies of the rates, loss costs, classificationplans, rating plans and rating systems used by its members. Each rate or losscosts filing shall become effective on the date specified in the filing, butnot earlier than 210 days from the date the filing is received by theCommissioner: Provided that (1) rate or loss costs filings for workers'compensation insurance and employers' liability insurance written in connectiontherewith shall not become effective earlier than 210 days from the date thefiling is received by the Commissioner or on the date as provided in G.S. 58‑36‑100,whichever is earlier; and (2) any filing may become effective on a date earlierthan that specified in this subsection upon agreement between the Commissionerand the Bureau.
(b) A filing shall beopen to public inspection immediately upon submission to the Commissioner.
(c) The Bureau shall maintainreasonable records, of the type and kind reasonably adapted to its method ofoperation, of the experience of its members and of the data, statistics orinformation collected or used by it in connection with the rates, rating plans,rating systems, loss costs and other data as specified in G.S. 58‑36‑100,underwriting rules, policy or bond forms, surveys or inspections made or usedby it.
(d) With respect to thefiling of rates for nonfleet private passenger motor vehicle insurance, theBureau shall, on or before February 1 of each year, or later with the approvalof the Commissioner, file with the Commissioner the experience, data,statistics, and information referred to in subsection (c) of this section andany proposed adjustments in the rates for all member companies of the Bureau.The filing shall include, where deemed by the Commissioner to be necessary forproper review, the data specified in subsections (c), (e), (g) and (h) of thissection. Any filing that does not contain the data required by this subsectionmay be returned to the Bureau and not be deemed a proper filing. Provided,however, that if the Commissioner concludes that a filing does not constitute aproper filing he shall promptly notify the Bureau in writing to that effect,which notification shall state in reasonable detail the basis of theCommissioner's conclusion. The Bureau shall then have a reasonable time toremedy the defects so specified. An otherwise defective filing thus remediedshall be deemed to be a proper and timely filing, except that all periods oftime specified in this Article will run from the date the Commissioner receivesadditional or amended documents necessary to remedy all material defects in theoriginal filing.
(d1) With respect toproperty insurance rates, the Bureau shall file no later than May 1, 2010, aschedule of credits for policyholders based on the presence of mitigation andconstruction features and on the condition of buildings that it insures in thebeach and coastal areas of the State. The Bureau shall develop rules applicableto the operation of the schedule and the mitigation program with approval bythe Commissioner. The schedule shall not be unfairly discriminatory and shallbe reviewed by the Bureau annually, with the results reported annually to theCommissioner.
(e) The Commissionermay require the filing of supporting data including:
(1) The Bureau'sinterpretation of any statistical data relied upon;
(2) Descriptions of themethods employed in setting the rates;
(3) Analysis of theincurred losses submitted on an accident year or policy year basis into theircomponent parts; to wit, paid losses, reserves for losses and loss expenses,and reserves for losses incurred but not reported;
(4) The total number anddollar amount of paid claims;
(5) The total number anddollar amount of case basis reserve claims;
(6) Earned and writtenpremiums at current rates by rating territory;
(7) Earned premiums andincurred losses according to classification plan categories; and
(8) Income frominvestment of unearned premiums and loss and loss expense reserves generated bybusiness within this State.
Provided, however, that withrespect to business written prior to January 1, 1980, the Commissioner shallnot require the filing of such supporting data which has not been required tobe recorded under statistical plans approved by the Commissioner.
(f) On or beforeSeptember 1 of each calendar year, or later with the approval of theCommissioner, the Bureau shall submit to the Commissioner the experience, data,statistics, and information referred to in subsection (c) of this section andrequired under G.S. 58‑36‑100 and a residual market rate orprospective loss costs review based on those data for workers' compensationinsurance and employers' liability insurance written in connection therewith.Any rate or loss costs increase for that insurance that is implemented underthis Article shall become effective solely to insurance with an inception dateon or after the effective date of the rate or loss costs increase.
(g) The followinginformation must be included in policy form, rule, and rate or loss costsfilings under this Article and under Article 37 of this Chapter:
(1) A detailed list ofthe rates, loss costs, rules, and policy forms filed, accompanied by a list ofthose superseded; and
(2) A detaileddescription, properly referenced, of all changes in policy forms, rules,prospective loss costs, and rates, including the effect of each change.
(h) Except to theextent the Commissioner determines that this subsection is inapplicable tofilings made under G.S. 58‑36‑100 and except for filings made underG.S. 58‑36‑30, all policy form, rule, prospective loss costs, andrate filings under this Article and Article 37 of this Chapter that are basedon statistical data must be accompanied by the following properly identifiedinformation:
(1) North Carolinaearned premiums at the actual and current rate level; losses and lossadjustment expenses, each on paid and incurred bases without trending or othermodification for the experience period, including the loss ratio anticipated atthe time the rates were promulgated for the experience period;
(2) Credibility factordevelopment and application;
(3) Loss developmentfactor derivation and application on both paid and incurred bases and in bothnumbers and dollars of claims;
(4) Trending factordevelopment and application;
(5) Changes in premiumbase resulting from rating exposure trends;
(6) Limiting factordevelopment and application;
(7) Overhead expensedevelopment and application of commission and brokerage, other acquisitionexpenses, general expenses, taxes, licenses, and fees;
(8) Percent rate orprospective loss costs change;
(9) Final proposedrates;
(10) Investment earnings,consisting of investment income and realized plus unrealized capital gains,from loss, loss expense, and unearned premium reserves;
(11) Identification ofapplicable statistical plans and programs and a certification of compliancewith them;
(12) Investment earningson capital and surplus;
(13) Level of capital andsurplus needed to support premium writings without endangering the solvency ofmember companies; and
(14) Such otherinformation that may be required by any rule adopted by the Commissioner.
Provided, however, that no filingmay be returned or disapproved on the grounds that such information has notbeen furnished if insurers have not been required to collect such informationpursuant to statistical plans or programs or to report such information to theBureau or to statistical agents, except where the Commissioner has givenreasonable prior notice to the insurers to begin collecting and reporting suchinformation, or except when the information is readily available to theinsurers.
(i) The Bureau shallfile with and at the time of any rate or prospective loss costs filing alltestimony, exhibits, and other information on which the Bureau will rely at thehearing on the rate filing. The Department shall file all testimony, exhibits,and other information on which the Department will rely at the hearing on therate filing 20 days in advance of the convening date of the hearing. Upon theissuance of a notice of hearing the Commissioner shall hold a meeting of theparties to provide for the scheduling of any additional testimony, including writtentestimony, exhibits or other information, in response to the notice of hearingand any potential rebuttal testimony, exhibits, or other information. Thissubsection also applies to rate filings made by the North Carolina MotorVehicle Reinsurance Facility under Article 37 of this Chapter. (1977, c. 828, s. 6; 1979,c. 824, s. 2; 1981, c. 521, s. 1; 1985, c. 666, s. 3; 1985 (Reg. Sess., 1986),c. 1027, ss. 2, 3; 1993, c. 409, s. 10; 1995, c. 505, s. 2; 1999‑132, ss.3.4‑3.6; 2002‑187, s. 4.1; 2009‑472, s. 3.)
