§ 38.2-2005. Provisions governing making of rates.
A. Rates for the classes of insurance to which this chapter applies shall notbe excessive, inadequate or unfairly discriminatory. All rates and allchanges and amendments to rates to which this chapter applies for use in thisCommonwealth shall consider loss experience and other factors within Virginiaif relevant and actuarially sound; however, other data, includingcountrywide, regional or other state data, may be considered where such datais relevant and where a sound actuarial basis exists for considering dataother than Virginia-specific data.
B. 1. In making rates for the classes of insurance to which this chapterapplies, separate consideration shall be given to (i) past and prospectiveloss experience within and outside this Commonwealth, (ii) conflagration orcatastrophe hazards, (iii) a reasonable margin for underwriting profit andcontingencies, (iv) dividends, savings or unabsorbed premium deposits allowedor returned by insurers to their policyholders, members or subscribers, (v)past and prospective expenses both countrywide and those specificallyapplicable to this Commonwealth, (vi) investment income earned or realized byinsurers from their unearned premium and loss reserve and the Commission maygive separate consideration to investment income earned on surplus funds,(vii) the loss reserving practices, standards and procedures utilized by theinsurer, and (viii) all other relevant factors within and outside thisCommonwealth. When actual experience or data does not exist, the Commissionmay consider estimates.
2. In the case of fire insurance rates, consideration shall be given to theexperience of the fire insurance business during a period of not less thanthe most recent five-year period for which such experience is available.
3. [Repealed.]
In the case of workers' compensation insurance rates for volunteerfirefighters or volunteer lifesaving or volunteer rescue squad memberswritten through the Virginia Worker's Compensation Insurance Plan, the ratesshall be calculated based upon the combined experience of both volunteerfirefighters or volunteer lifesaving or volunteer rescue squad members andpaid firefighters or paid lifesaving or paid rescue squad members, so thatthe resulting rate is the same for both volunteer and paid members, but in noevent shall resulting premiums be less than forty dollars per year for anyvolunteer firefighter or rescue squad member.
C. For the classes of insurance to which this chapter applies (i) the systemsof expense provisions included in the rates for use by any insurer or groupof insurers may differ from those of other insurers or groups of insurers toreflect the requirements of the operating methods of any such insurer orgroup for any class of insurance, or for any subdivision or combination ofinsurance for which separate expense provisions apply, and (ii) risks may begrouped by classifications for the establishment of rates and minimumpremiums. Classification rates may be modified to produce rates forindividual risks in accordance with rating plans that establish standards formeasuring variations in hazards, expense provisions, or both. The standardsmay measure any difference among risks that can be demonstrated to have aprobable effect upon losses or expenses.
D. All rates, rating schedules or rating plans and every manual ofclassifications, rules and rates, including every modification thereof,approved by the Commission under this chapter, shall be used until a changeis approved by the Commission.
(Code 1950, §§ 38-208, 38-253.21, 38-253.68; 1950, p. 403; 1952, c. 317, §38.1-252; 1962, c. 253; 1970, c. 186; 1972, c. 836; 1973, c. 504; 1986, c.562; 1987, c. 697; 1996, c. 250; 2002, c. 145.)
§ 38.2-2005. Provisions governing making of rates.
A. Rates for the classes of insurance to which this chapter applies shall notbe excessive, inadequate or unfairly discriminatory. All rates and allchanges and amendments to rates to which this chapter applies for use in thisCommonwealth shall consider loss experience and other factors within Virginiaif relevant and actuarially sound; however, other data, includingcountrywide, regional or other state data, may be considered where such datais relevant and where a sound actuarial basis exists for considering dataother than Virginia-specific data.
B. 1. In making rates for the classes of insurance to which this chapterapplies, separate consideration shall be given to (i) past and prospectiveloss experience within and outside this Commonwealth, (ii) conflagration orcatastrophe hazards, (iii) a reasonable margin for underwriting profit andcontingencies, (iv) dividends, savings or unabsorbed premium deposits allowedor returned by insurers to their policyholders, members or subscribers, (v)past and prospective expenses both countrywide and those specificallyapplicable to this Commonwealth, (vi) investment income earned or realized byinsurers from their unearned premium and loss reserve and the Commission maygive separate consideration to investment income earned on surplus funds,(vii) the loss reserving practices, standards and procedures utilized by theinsurer, and (viii) all other relevant factors within and outside thisCommonwealth. When actual experience or data does not exist, the Commissionmay consider estimates.
2. In the case of fire insurance rates, consideration shall be given to theexperience of the fire insurance business during a period of not less thanthe most recent five-year period for which such experience is available.
3. [Repealed.]
In the case of workers' compensation insurance rates for volunteerfirefighters or volunteer lifesaving or volunteer rescue squad memberswritten through the Virginia Worker's Compensation Insurance Plan, the ratesshall be calculated based upon the combined experience of both volunteerfirefighters or volunteer lifesaving or volunteer rescue squad members andpaid firefighters or paid lifesaving or paid rescue squad members, so thatthe resulting rate is the same for both volunteer and paid members, but in noevent shall resulting premiums be less than forty dollars per year for anyvolunteer firefighter or rescue squad member.
C. For the classes of insurance to which this chapter applies (i) the systemsof expense provisions included in the rates for use by any insurer or groupof insurers may differ from those of other insurers or groups of insurers toreflect the requirements of the operating methods of any such insurer orgroup for any class of insurance, or for any subdivision or combination ofinsurance for which separate expense provisions apply, and (ii) risks may begrouped by classifications for the establishment of rates and minimumpremiums. Classification rates may be modified to produce rates forindividual risks in accordance with rating plans that establish standards formeasuring variations in hazards, expense provisions, or both. The standardsmay measure any difference among risks that can be demonstrated to have aprobable effect upon losses or expenses.
D. All rates, rating schedules or rating plans and every manual ofclassifications, rules and rates, including every modification thereof,approved by the Commission under this chapter, shall be used until a changeis approved by the Commission.
(Code 1950, §§ 38-208, 38-253.21, 38-253.68; 1950, p. 403; 1952, c. 317, §38.1-252; 1962, c. 253; 1970, c. 186; 1972, c. 836; 1973, c. 504; 1986, c.562; 1987, c. 697; 1996, c. 250; 2002, c. 145.)
§ 38.2-2005. Provisions governing making of rates.
A. Rates for the classes of insurance to which this chapter applies shall notbe excessive, inadequate or unfairly discriminatory. All rates and allchanges and amendments to rates to which this chapter applies for use in thisCommonwealth shall consider loss experience and other factors within Virginiaif relevant and actuarially sound; however, other data, includingcountrywide, regional or other state data, may be considered where such datais relevant and where a sound actuarial basis exists for considering dataother than Virginia-specific data.
B. 1. In making rates for the classes of insurance to which this chapterapplies, separate consideration shall be given to (i) past and prospectiveloss experience within and outside this Commonwealth, (ii) conflagration orcatastrophe hazards, (iii) a reasonable margin for underwriting profit andcontingencies, (iv) dividends, savings or unabsorbed premium deposits allowedor returned by insurers to their policyholders, members or subscribers, (v)past and prospective expenses both countrywide and those specificallyapplicable to this Commonwealth, (vi) investment income earned or realized byinsurers from their unearned premium and loss reserve and the Commission maygive separate consideration to investment income earned on surplus funds,(vii) the loss reserving practices, standards and procedures utilized by theinsurer, and (viii) all other relevant factors within and outside thisCommonwealth. When actual experience or data does not exist, the Commissionmay consider estimates.
2. In the case of fire insurance rates, consideration shall be given to theexperience of the fire insurance business during a period of not less thanthe most recent five-year period for which such experience is available.
3. [Repealed.]
In the case of workers' compensation insurance rates for volunteerfirefighters or volunteer lifesaving or volunteer rescue squad memberswritten through the Virginia Worker's Compensation Insurance Plan, the ratesshall be calculated based upon the combined experience of both volunteerfirefighters or volunteer lifesaving or volunteer rescue squad members andpaid firefighters or paid lifesaving or paid rescue squad members, so thatthe resulting rate is the same for both volunteer and paid members, but in noevent shall resulting premiums be less than forty dollars per year for anyvolunteer firefighter or rescue squad member.
C. For the classes of insurance to which this chapter applies (i) the systemsof expense provisions included in the rates for use by any insurer or groupof insurers may differ from those of other insurers or groups of insurers toreflect the requirements of the operating methods of any such insurer orgroup for any class of insurance, or for any subdivision or combination ofinsurance for which separate expense provisions apply, and (ii) risks may begrouped by classifications for the establishment of rates and minimumpremiums. Classification rates may be modified to produce rates forindividual risks in accordance with rating plans that establish standards formeasuring variations in hazards, expense provisions, or both. The standardsmay measure any difference among risks that can be demonstrated to have aprobable effect upon losses or expenses.
D. All rates, rating schedules or rating plans and every manual ofclassifications, rules and rates, including every modification thereof,approved by the Commission under this chapter, shall be used until a changeis approved by the Commission.
(Code 1950, §§ 38-208, 38-253.21, 38-253.68; 1950, p. 403; 1952, c. 317, §38.1-252; 1962, c. 253; 1970, c. 186; 1972, c. 836; 1973, c. 504; 1986, c.562; 1987, c. 697; 1996, c. 250; 2002, c. 145.)
