38.2-1901 - Definitions.
§ 38.2-1901. Definitions.
As used in this chapter:
"Classification system" or "classification" means the plan, system, orarrangement for grouping risks with similar characteristics or a specifiedclass of risk by recognizing differences in exposure to hazards.
"Client company" shall have the same meaning ascribed to it in § 65.2-101.
"Coemployee" shall have the same meaning ascribed to it in § 65.2-101.
"Experience rating" means a statistical procedure utilizing past riskexperience to produce a prospective premium credit, debit, or unitymodification.
"Market segment" means any line or class of insurance or, if it isdescribed in general terms, any subdivision of insurance or any class ofrisks or combination of classes.
"Professional employer organization" shall have the same meaning ascribedto it in § 65.2-101.
"Professional employer services" means services provided to a clientcompany pursuant to a written agreement with a professional employerorganization, including, at a minimum, the payment of wages of thecoemployees, the reservation of the right of direction and control over thecoemployees, and the responsibility for the withholding and payment ofpayroll taxes of the coemployees.
"Prospective loss costs" means historical aggregate losses and lossadjustment expenses projected through development to their ultimate value andthrough trending to a future point in time. Prospective loss costs do notinclude provisions for profit or expenses other than loss adjustment expenses.
"Rate service organization" means any entity, including its affiliates orsubsidiaries, which either has two or more member insurers or is controlledeither directly or indirectly by two or more insurers, other than a jointunderwriting association under § 38.2-1915, which assists insurers inratemaking or filing by (i) collecting, compiling, and furnishing lossstatistics; (ii) recommending, making, or filing prospective loss costs orsupplementary rate information; or (iii) advising about rate questions,except as an attorney giving legal advice. Two or more insurers having acommon ownership or operating in this Commonwealth under common management orcontrol constitute a single insurer for purposes of this definition.
"Retrospective rating plan" means a rating plan that adjusts the premiumfor the insurance to which it applies on the basis of losses incurred duringthe period covered by that insurance.
"Statistical plan" means the plan, system, or arrangement used incollecting data for rate making or other purposes.
"Supplementary rate information" includes any manual or plan of rates,experience rating plan, statistical plan, classification, rating schedule,minimum premium, or minimum premium rule, policy fee, rating rule,rate-related underwriting rule, and any other information not otherwiseinconsistent with the purposes of this chapter required by the Commission.
"Supporting data" includes:
1. The experience and judgment of the filer and, to the extent the filerwishes or the Commission requires, the experience and judgment of otherinsurers or rate service organizations;
2. The filer's interpretation of any statistical data relied upon;
3. Descriptions of the actuarial and statistical methods employed in settingthe rates; and
4. Any other relevant information required by the Commission.
(1973, c. 504, §§ 38.1-279.30, 38.1-279.40; 1986, c. 562; 1990, c. 596; 1993,c. 985; 1997, c. 153; 2000, cc. 624, 718.)