§ 58‑41‑50. Policy form and rate filings; punitive damages; data required to supportfilings.
(a) With the exceptionof inland marine insurance that is not written according to manual rates andrating plans, all policy forms must be filed with and either approved by theCommissioner or 90 days have elapsed and he has not disapproved the form beforethey may be used in this State. With respect to liability insurance policyforms, an insurer may exclude or limit coverage for punitive damages awardedagainst its insured.
(b) With the exceptionof inland marine insurance that is not written according to manual rates andrating plans, all rates or prospective loss cost multipliers by licensed fireand casualty companies or their designated statistical organizations must befiled with the Commissioner at least 60 days before they may be used in thisState. Any filing may become effective on a date earlier than that specified inthis subsection upon agreement between the Commissioner and the filer.
(c) A filing that doesnot include the statistical and rating information required by subsections (d)and (e) of this section is not a proper filing, and will be returned to thefiling insurer or organization. The filer may then remedy the defects in thefiling. An otherwise defective filing thus remedied shall be deemed to be aproper filing, except that all periods of time specified in this Article willrun from the date the Commissioner receives additional or amended documentsnecessary to remedy all material defects in the filing.
(d) The followinginformation must be included in each policy form, rule, and rate filing:
(1) A detailed list ofthe rates, rules, and policy forms filed, accompanied by a list of thosesuperseded; and
(2) A detaileddescription, properly referenced, of all changes in policy forms, rules, andrates, including the effect of each change.
(e) Each policy form,rule, and rate filing that is based on statistical data must be accompanied bythe following properly identified information:
(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 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 ofthe company or companies involved; 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 the filer has not been required to collect such informationpursuant to statistical plans or programs or to report such information tostatistical agents, except where the Commissioner has given reasonable priornotice to the filer to begin collecting and reporting such information orexcept when the information is readily available to the filer.
(f) It is unlawful foran insurer to charge or collect, or attempt to charge or collect, any premiumfor insurance except in accordance with filings made with the Commissionerunder this section and Article 40 of this Chapter.
(g) An insurer subjectto this Article may develop and use an individual form or rate as a result ofthe uniqueness of a particular risk. The form or rate shall be developed,filed, and used in accordance with rules adopted by the Commissioner. (1985 (Reg. Sess., 1986), c.1027, s. 14; 1987, c. 441, ss. 7, 9, 10; 1991, c. 644, s. 4; 1995, c. 193, s.37; 2005‑210, s. 20.)
§ 58‑41‑50. Policy form and rate filings; punitive damages; data required to supportfilings.
(a) With the exceptionof inland marine insurance that is not written according to manual rates andrating plans, all policy forms must be filed with and either approved by theCommissioner or 90 days have elapsed and he has not disapproved the form beforethey may be used in this State. With respect to liability insurance policyforms, an insurer may exclude or limit coverage for punitive damages awardedagainst its insured.
(b) With the exceptionof inland marine insurance that is not written according to manual rates andrating plans, all rates or prospective loss cost multipliers by licensed fireand casualty companies or their designated statistical organizations must befiled with the Commissioner at least 60 days before they may be used in thisState. Any filing may become effective on a date earlier than that specified inthis subsection upon agreement between the Commissioner and the filer.
(c) A filing that doesnot include the statistical and rating information required by subsections (d)and (e) of this section is not a proper filing, and will be returned to thefiling insurer or organization. The filer may then remedy the defects in thefiling. An otherwise defective filing thus remedied shall be deemed to be aproper filing, except that all periods of time specified in this Article willrun from the date the Commissioner receives additional or amended documentsnecessary to remedy all material defects in the filing.
(d) The followinginformation must be included in each policy form, rule, and rate filing:
(1) A detailed list ofthe rates, rules, and policy forms filed, accompanied by a list of thosesuperseded; and
(2) A detaileddescription, properly referenced, of all changes in policy forms, rules, andrates, including the effect of each change.
(e) Each policy form,rule, and rate filing that is based on statistical data must be accompanied bythe following properly identified information:
(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 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 ofthe company or companies involved; 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 the filer has not been required to collect such informationpursuant to statistical plans or programs or to report such information tostatistical agents, except where the Commissioner has given reasonable priornotice to the filer to begin collecting and reporting such information orexcept when the information is readily available to the filer.
(f) It is unlawful foran insurer to charge or collect, or attempt to charge or collect, any premiumfor insurance except in accordance with filings made with the Commissionerunder this section and Article 40 of this Chapter.
(g) An insurer subjectto this Article may develop and use an individual form or rate as a result ofthe uniqueness of a particular risk. The form or rate shall be developed,filed, and used in accordance with rules adopted by the Commissioner. (1985 (Reg. Sess., 1986), c.1027, s. 14; 1987, c. 441, ss. 7, 9, 10; 1991, c. 644, s. 4; 1995, c. 193, s.37; 2005‑210, s. 20.)
§ 58‑41‑50. Policy form and rate filings; punitive damages; data required to supportfilings.
(a) With the exceptionof inland marine insurance that is not written according to manual rates andrating plans, all policy forms must be filed with and either approved by theCommissioner or 90 days have elapsed and he has not disapproved the form beforethey may be used in this State. With respect to liability insurance policyforms, an insurer may exclude or limit coverage for punitive damages awardedagainst its insured.
(b) With the exceptionof inland marine insurance that is not written according to manual rates andrating plans, all rates or prospective loss cost multipliers by licensed fireand casualty companies or their designated statistical organizations must befiled with the Commissioner at least 60 days before they may be used in thisState. Any filing may become effective on a date earlier than that specified inthis subsection upon agreement between the Commissioner and the filer.
(c) A filing that doesnot include the statistical and rating information required by subsections (d)and (e) of this section is not a proper filing, and will be returned to thefiling insurer or organization. The filer may then remedy the defects in thefiling. An otherwise defective filing thus remedied shall be deemed to be aproper filing, except that all periods of time specified in this Article willrun from the date the Commissioner receives additional or amended documentsnecessary to remedy all material defects in the filing.
(d) The followinginformation must be included in each policy form, rule, and rate filing:
(1) A detailed list ofthe rates, rules, and policy forms filed, accompanied by a list of thosesuperseded; and
(2) A detaileddescription, properly referenced, of all changes in policy forms, rules, andrates, including the effect of each change.
(e) Each policy form,rule, and rate filing that is based on statistical data must be accompanied bythe following properly identified information:
(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 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 ofthe company or companies involved; 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 the filer has not been required to collect such informationpursuant to statistical plans or programs or to report such information tostatistical agents, except where the Commissioner has given reasonable priornotice to the filer to begin collecting and reporting such information orexcept when the information is readily available to the filer.
(f) It is unlawful foran insurer to charge or collect, or attempt to charge or collect, any premiumfor insurance except in accordance with filings made with the Commissionerunder this section and Article 40 of this Chapter.
(g) An insurer subjectto this Article may develop and use an individual form or rate as a result ofthe uniqueness of a particular risk. The form or rate shall be developed,filed, and used in accordance with rules adopted by the Commissioner. (1985 (Reg. Sess., 1986), c.1027, s. 14; 1987, c. 441, ss. 7, 9, 10; 1991, c. 644, s. 4; 1995, c. 193, s.37; 2005‑210, s. 20.)
