Statutes, codes, and regulations
Colorado Administrative Code
Department 700 - Department of Regulatory AgenciesDivision 702 - Division of InsuranceRule 3 CCR 702-5 - PROPERTY AND CASUALTY
Regulation Regulation 5-1-20 - RATE CAPPING AND TRANSITION PLAN PRACTICES FOR PROPERTY AND CASUALTY INSURANCE
Section 3 CCR 702-5-1-20-4 - Definitions

3 Colo. Code Regs. § 702-5-1-20-4

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Current through Register Vol. 47, No. 24, December 25, 2024
Section 3 CCR 702-5-1-20-4 - Definitions

For the purpose of this regulation:

A. "Acquired book of business" means any book of business purchased or obtained from another licensed insurer or MGA representing a licensed insurer.
B. "Book of business" means the collective group of policyholders insured in a specific insurance program.
C. "Cap" means the upper or lower limitation of the indicated change in rate applied to the transitioning book of business.
D. "Ceiling" means the upper limitation of the proposed rate change applied to the transitioning book of business.
E. "Existing book of business" means any book of business, not already under a rate transition plan, held by an insurer.
F. "Floor" means the lower limitation of the proposed rate change applied to the transitioning book of business.
G. "Loyalty/Persistency/Tenure" means any compliant credit/discount that quantifies the decrease in risk as a result of successive policyholder renewals.
H. "Managing General Agent" or "MGA" shall have the same meaning as found at § 10-2-1002(2)(a), C.R.S.
I. "Rate parity" means equivalence of the rates of policyholders in the acquired book of business and the rates of policyholders, of the same class and hazard, in the existing book of business or equivalence of current rates to indicated rates for an existing book of business.

3 CCR 702-5-1-20-4

38 CR 17, September 10, 2015, effective 10/1/2015
38 CR 18, September 25, 2015, effective 10/15/2015
39 CR 01, January 10, 2016, effective 2/1/2016
39 CR 05, March 10, 2016, effective 4/1/2016
41 CR 01, January 10, 2018, effective 2/14/2018
40 CR 21, November 10, 2017, effective 4/1/2018
41 CR 19, October 10, 2018, effective 11/1/2018
42 CR 18, September 25, 2019, effective 1/1/2020
42 CR 23, December 10, 2019, effective 1/1/2020
44 CR 13, July 10, 2021, effective 6/3/2021
44 CR 08, April 25, 2021, effective 8/1/2021
45 CR 03, February 10, 2022, effective 3/2/2022
45 CR 22, November 25, 2022, effective 12/15/2022
46 CR 11, June 10, 2023, effective 4/27/2023