38.2-1908 - Rate making and delegation of filing obligation.
§ 38.2-1908. Rate making and delegation of filing obligation.
A. An insurer shall establish rates and supplementary rate information forany market segment based on the factors in § 38.2-1904. A rate serviceorganization shall establish prospective loss costs and supplementary rateinformation for any market segment based on the factors in § 38.2-1904. Aninsurer may use supplementary rate information prepared by a rate serviceorganization and may use prospective loss costs determined by the rateservice organization with modification for its own expense and profit. Theinsurer may modify the prospective loss costs based on its own lossexperience as the credibility of that loss experience allows.
B. An insurer may discharge its obligation to file supplementary rateinformation under subsection A of § 38.2-1906 by giving notice to theCommission that it uses supplementary rate information prepared and filedwith the Commission by a designated rate service organization of which it isa member, subscriber, or service purchaser. The Commission may by orderrequire an insurer to provide information in addition to that filed by therate service organization. The insurer's supplementary rate information shallbe that filed from time to time by the rate service organization, includingany amendments to the supplementary rate information, subject tomodifications filed by the insurer.
C. Every insurer shall adhere to the uniform classification system, uniformexperience rating plan, and uniform statistical plan approved by theCommission in the provision of insurance defined in § 38.2-119. An insurermay develop subclassifications of the uniform classification system uponwhich rates for insurance defined in § 38.2-119 may be made; however, suchsubclassification must first be filed with and approved by the Commission.An insurer filing such subclassifications must certify to the Commission thatthe data it produces can be reported in a manner consistent with the uniformstatistical plan and uniform classification system of its designated rateservice organization.
(1973, c. 504, § 38.1-279.36; 1976, c. 275; 1982, c. 201; 1986, c. 562; 1987,c. 697; 1990, c. 596; 1993, c. 985.)