Section 2509.32 - Insurer's Rate Filing(a) Insurance Code Sections 11734 and 11735 require an insurer to file its rates and supplementary rate information at least 30 days before their effective date, unless the Commissioner approves the insurer's request for an earlier date. Insurance Code Section 11658 provides that no insurer shall issue a workers' compensation insurance policy unless the policy is first approved by the Commissioner. Insurers shall file workers' compensation insurance rate filings with the Department of Insurance, Rate Filing Bureau for Workers' Compensation Insurance.(b) The filing date of a rate filing is the date the Rate Filing Bureau for Workers' Compensation Insurance receives a complete rate filing. The 30-day waiting period described in Insurance Code Section 11734, subdivision (b), and Section 11735, subdivision (a), begins on the filing date.(c) The Commissioner shall determine whether a rate filing is complete and complies with filing requirements, and the Commissioner may reject a rate filing if the insurer fails to comply with filing requirements or if the filing is incomplete. (1) If the Commissioner rejects an insurer's rate filing because it is incomplete or otherwise fails to comply with filing requirements, any subsequent rate filing by that insurer shall be given a new filing date on its receipt by the Rate Filing Bureau for Workers' Compensation Insurance.(2) If a rate filing needs correction of an error or filing of additional information to be complete, the Commissioner shall give the insurer an opportunity to correct the filing. If the insurer corrects the rate filing within 30 days of its original filing date, the insurer may calculate the 30-day waiting period from the original date of the rate filing. If the insurer corrects the rate filing more than 30 days from its original filing date, the Department shall assign a new filing date, which shall be the date the correction or additional information is received by the Rate Filing Bureau for Workers' Compensation Insurance. In that case, the insurer may request of the Commissioner that its rates become effective earlier than the normal 30-day waiting period.(d) Every insurer that makes a rate filing shall complete the Workers' Compensation Insurance Rate Filing Form ("Filing Form") provided by the Department of Insurance. The Filing Form shall be prescribed by the Commissioner. No rate filing shall be complete without a completed Filing Form.(e) A complete rate filing is one for which the insurer has completed the Filing Form and submitted all necessary attachments and exhibits. Necessary attachments and exhibits are those materials that, together with the Filing Form, are sufficient to enable the Commissioner to determine the rates the insurer would charge its insureds. Unless the Commissioner notifies the insurer within 30 days of the filing date that its rate filing is incomplete, the rate filing will be considered complete.(f) The insurer shall specify its pure premium rate modifier on the Filing Form.(g) The insurer may request that any or all of its pure premium rate modifiers and deviations remain on file with the Commissioner and be applicable to subsequent approved pure premium raters. If the insurer makes that request, the following conditions shall apply: (1) If the insurer chooses to use subsequent approved pure premium rates when they become effective, and has so indicated on the Filing Form, the insurer need file nothing additional with the Department before using those rates. Under that circumstance, the insurer's new rates will be the combination of the new approved pure premium rates and the insurer's previously filed pure premium rate modifications and deviations, if any.(2) If the insurer chooses to use the subsequent approved pure premium rates but with a different effective date than that specified by the Commissioner, the insurer shall notify the Department of the intended effective date no less than 30 days before their actual use by the insurer, unless the Commissioner approves the insurer's request for an earlier effective date.(h) If an insurer chooses not to apply any its pure premium rate modifiers and deviations to subsequent approved pure premium rates, it shall so indicate on the Filing Form.(i) An insurer that wishes to adopt the approved pure premium rates or other filings of the designated rating organization shall specify the rates or other filings it is adopting and, by that reference, may incorporate those rates or other filings into its filing. Every insurer shall adhere to the experience rating plan and uniform statistical reporting plan filed by the designated rating organization and approved by the Commissioner.(j) An insurer shall accompany each rate filing with a statement of opinion by an actuary regarding whether the filing rates include a reasonable estimate of the insurer's expected losses and expenses for the anticipated risks for the periods the insurer intends to use the filed rates.(k) If an insurer files a classification system different from the standard classification system developed by the designated rating organization and approved by the Commissioner as part of the uniform statistical reporting plan, the insurer shall explain in detail how its classification system differs from the uniform classification system. (1) The insurer's classification codes shall be compatible with the classification codes of the uniform classification system.(2) The insurer shall demonstrate that the data produced by its classification system can be reported consistent with the uniform statistical reporting plan and uniform classification system. The Commissioner will accept in lieu of the insurer's demonstration a written certification from the designated rating organization that data produced by an insurer's classification system can be reported consistent with the uniform statistical reporting plan and the uniform classification system.Cal. Code Regs. Tit. 10, § 2509.32
1. New section filed 10-13-94; operative 10-13-94. Submitted to OAL for printing only pursuant to Statutes of 1993, Ch. 1242 (S.B. 223), section 43, subdivision 3 (Register 94, No. 41). 1. New section filed 10-13-94; operative 10-13-94. Submitted to OAL for printing only pursuant to Statutes of 1993, Ch. 1242 (S.B. 223), section 43, subdivision 3 (Register 94, No. 41).