§ 27-7.1-5.1 - Rate filings.
SECTION 27-7.1-5.1
§ 27-7.1-5.1 Rate filings. – (a) Every insurer shall file with the director every manual, minimum premium,class rate, rating schedule, or rating plan and every other rating rule, andevery modification of any of the foregoing which it proposes to use. An insurermay file its rates either by filing its final rates or by filing a multiplierto be applied to prospective loss costs that have been filed by an advisoryorganization on behalf of an insurer as permitted by § 27-9-8.1. Everyfiling shall state the proposed effective date of the filing.
(2) Every insurer shall file or incorporate by referencematerial which has been approved by the director, at the same time as thefiling of the rate, and all supplementary rating and supporting information tobe used in support of or in conjunction with a rate. The information furnishedfor support of a filing may include or consist of a reference to: (i) theexperience or judgment of the insurer or information filed by the advisoryorganization on behalf of the insurer as permitted by § 27-9-8.1; (ii) theinterpretation of the insurer or advisory organization of any statistical datait relies upon; (iii) the experience of other insurers or advisoryorganizations; or (iv) any other relevant factors. A filing and any supportinginformation shall be open to public inspection upon receipt of the filing.
(3) When a filing is not accompanied by the information uponwhich the insurer supports the filing, the director may require the insurer tofurnish the information upon which it supports the filing and, in that event,the waiting period shall commence as of the date the information is furnished.Until the requested information is provided, the filing shall not be deemedcomplete. If the requested information is not filed within a reasonable time,the filing may be returned to the insurer as not filed and not available foruse.
(4) After reviewing an insurer's filing, the director mayrequire that the insurer's rates be based upon the insurer's own loss, specialassessment, and expense information. If the insurer's loss or allocated lossadjustment expense information is not actuarially credible, as determined bythe director, the insurer may use or supplement its experience with informationfiled with the director by an advisory organization.
(5) Insurers utilizing the services of an advisoryorganization must provide with their rate filing, at the request of thedirector, a description of the rationale for that use, including its owninformation and method of utilization of the advisory organization'sinformation.
(b) The director shall review filings as soon as reasonablypossible after they have been made in order to determine whether they meet therequirements of this chapter.
(c) Subject to the exception specified in § 27-7.1-6.2,each filing shall be on file for a waiting period of thirty (30) days before itbecomes effective, which period may be extended by the director for anadditional period not to exceed thirty (30) days if written notice is givenwithin the waiting period to the insurer or advisory organization which madethe filing that additional time is needed for the consideration of the filing.Upon written application by the insurer, the director may authorize a filingthat has been reviewed to become effective before the expiration of the waitingperiod or any extension of the waiting period. A filing shall be deemed to meetthe requirements of this chapter unless disapproved by the director within thewaiting period or any extension of the waiting period.
(d) No insurer shall make or issue a contract or policyexcept in accordance with the filings which have been approved and are ineffect for that insurer as provided in this chapter or in accordance withsubsection (c) of this section.
(e) Nothing contained in this section shall prevent thedirector from holding a hearing on a rate filing pursuant to the provisions ofchapter 35 of title 42 and regulations adopted by the department.