A. Use of prima facie rates. An insurer that files rates or has rates onfile that are not in excess of the prima facie rates set forth in § 38.2-3726or published as set forth in § 38.2-3727, to the extent adjusted pursuant to§ 38.2-3730, may use those rates without further proof of theirreasonableness.
B. Use of rates higher than prima facie rates. An insurer may file forapproval of and use rates that are higher than the prima facie rates setforth in § 38.2-3726 or published as set forth in § 38.2-3727, to the extentadjusted by § 38.2-3730. In order to use these higher rates, it shall bedemonstrated to the satisfaction of the Commission that the use of suchhigher rates will result in a ratio of claims incurred to premiums earned(assuming the use of such higher rates) that is not less than the loss ratiosas required by § 38.2-3725 D and E for those accounts to which such higherrates apply and that such upward deviations will not result on a statewidebasis for that insurer of a ratio of claims incurred to premiums earned ofless than the expected loss ratio underlying the current prima facie ratedeveloped or adjusted pursuant to § 38.2-3730. Deviations effective for 1993and 1994 for credit life insurance shall be derived based upon a fiftypercent loss ratio.
If rates higher than the prima facie rates provided for in §§ 38.2-3726 and38.2-3727, to the extent adjusted pursuant to § 38.2-3730, are filed forapproval, the filing shall specify the account or accounts to which suchrates apply. Such rates may be applied on an equitable basis approved by theCommission to only one or more accounts specified by the insurer for whichthe experience has been less favorable than expected.
C. Approval period of deviated rates.
1. A deviated rate will be in effect for a period of time not longer than theexperience period used to establish such rate. In no event will deviatedrates remain in effect after the effective date that new prima facie ratesare effective as set forth in § 38.2-3730.
2. Notwithstanding subsection A of this section, the prima facie rates shallbe employed in the event that the account becomes insured by another insurer.
D. As used in this section:
1. "Experience" means "earned premiums" and "incurred claims" duringthe experience period.
2. "Experience period" means the most recent period of time for whichexperience is reported, but not for a period longer than three full years.
3. "Incurred claims" means total claims paid during the experience period,adjusted for the change in claim reserve.
A. Use of prima facie rates. An insurer that files rates or has rates onfile that are not in excess of the prima facie rates set forth in § 38.2-3726or published as set forth in § 38.2-3727, to the extent adjusted pursuant to§ 38.2-3730, may use those rates without further proof of theirreasonableness.
B. Use of rates higher than prima facie rates. An insurer may file forapproval of and use rates that are higher than the prima facie rates setforth in § 38.2-3726 or published as set forth in § 38.2-3727, to the extentadjusted by § 38.2-3730. In order to use these higher rates, it shall bedemonstrated to the satisfaction of the Commission that the use of suchhigher rates will result in a ratio of claims incurred to premiums earned(assuming the use of such higher rates) that is not less than the loss ratiosas required by § 38.2-3725 D and E for those accounts to which such higherrates apply and that such upward deviations will not result on a statewidebasis for that insurer of a ratio of claims incurred to premiums earned ofless than the expected loss ratio underlying the current prima facie ratedeveloped or adjusted pursuant to § 38.2-3730. Deviations effective for 1993and 1994 for credit life insurance shall be derived based upon a fiftypercent loss ratio.
If rates higher than the prima facie rates provided for in §§ 38.2-3726 and38.2-3727, to the extent adjusted pursuant to § 38.2-3730, are filed forapproval, the filing shall specify the account or accounts to which suchrates apply. Such rates may be applied on an equitable basis approved by theCommission to only one or more accounts specified by the insurer for whichthe experience has been less favorable than expected.
C. Approval period of deviated rates.
1. A deviated rate will be in effect for a period of time not longer than theexperience period used to establish such rate. In no event will deviatedrates remain in effect after the effective date that new prima facie ratesare effective as set forth in § 38.2-3730.
2. Notwithstanding subsection A of this section, the prima facie rates shallbe employed in the event that the account becomes insured by another insurer.
D. As used in this section:
1. "Experience" means "earned premiums" and "incurred claims" duringthe experience period.
2. "Experience period" means the most recent period of time for whichexperience is reported, but not for a period longer than three full years.
3. "Incurred claims" means total claims paid during the experience period,adjusted for the change in claim reserve.
A. Use of prima facie rates. An insurer that files rates or has rates onfile that are not in excess of the prima facie rates set forth in § 38.2-3726or published as set forth in § 38.2-3727, to the extent adjusted pursuant to§ 38.2-3730, may use those rates without further proof of theirreasonableness.
B. Use of rates higher than prima facie rates. An insurer may file forapproval of and use rates that are higher than the prima facie rates setforth in § 38.2-3726 or published as set forth in § 38.2-3727, to the extentadjusted by § 38.2-3730. In order to use these higher rates, it shall bedemonstrated to the satisfaction of the Commission that the use of suchhigher rates will result in a ratio of claims incurred to premiums earned(assuming the use of such higher rates) that is not less than the loss ratiosas required by § 38.2-3725 D and E for those accounts to which such higherrates apply and that such upward deviations will not result on a statewidebasis for that insurer of a ratio of claims incurred to premiums earned ofless than the expected loss ratio underlying the current prima facie ratedeveloped or adjusted pursuant to § 38.2-3730. Deviations effective for 1993and 1994 for credit life insurance shall be derived based upon a fiftypercent loss ratio.
If rates higher than the prima facie rates provided for in §§ 38.2-3726 and38.2-3727, to the extent adjusted pursuant to § 38.2-3730, are filed forapproval, the filing shall specify the account or accounts to which suchrates apply. Such rates may be applied on an equitable basis approved by theCommission to only one or more accounts specified by the insurer for whichthe experience has been less favorable than expected.
C. Approval period of deviated rates.
1. A deviated rate will be in effect for a period of time not longer than theexperience period used to establish such rate. In no event will deviatedrates remain in effect after the effective date that new prima facie ratesare effective as set forth in § 38.2-3730.
2. Notwithstanding subsection A of this section, the prima facie rates shallbe employed in the event that the account becomes insured by another insurer.
D. As used in this section:
1. "Experience" means "earned premiums" and "incurred claims" duringthe experience period.
2. "Experience period" means the most recent period of time for whichexperience is reported, but not for a period longer than three full years.
3. "Incurred claims" means total claims paid during the experience period,adjusted for the change in claim reserve.
