D.C. Mun. Regs. tit. 26, r. 26-A5303

Current through Register 71, No. 45, November 7, 2024

Rule 26-A5303 - ADJUSTMENTS OF RATES

5303.1

Whenever it shall be made to appear to the Commissioner, either from his own information or from a complaint of any party alleging to be aggrieved thereby, that there are reasonable grounds to believe that the rates on any or on all risks or classes of risk or kinds of insurance within the scope of the act, are excessive, inadequate or unfairly discriminatory, it shall be the Commissioner's duty, and he or shall have the full power and authority, to investigate the necessity for an adjustment of any or all such rates.

5303.2

After an investigation of the rates, the Commissioner shall, before order an adjustment, hold a hearing upon not less than 10 days written notice specifying the matters to be considered at the hearing, to every company and rating organization which filed the rates, provided, the Commissioner shall not be required to hold the hearing if he or she is advised in writing by every such company and rating organization admitted to write medical malpractice insurance in the District that they do not wish to contest the adjustment and thereby are waiving any right they may have to a hearing. The hearing shall be conducted in accordance with the hearing regulations provided at Chapter 38 of Title 26 of the District of Columbia Municipal Regulations ("DCMR"), and the cost shall be borne by the insurance company requesting the rate increase.

5303.3

If, after the hearing, the Commissioner determines that any or all of the rates are excessive, inadequate or unfairly discriminatory, he or she shall order an adjustment.

5303.4

An order of adjustment shall not affect any contract or policy made or issued prior to the effective date of the order unless:

(a) The adjustment is substantial and exceeds the cost to the companies of making the adjustment; and

(b) The order is made after the prescribed investigation and hearing and within 30 days after the filing of the rates affected.

5303.5

In determining the necessity for an adjustment of rates, the Commissioner shall be bound by the provisions of section 3 of the Act (D.C. Official Code § 31-2703) .

D.C. Mun. Regs. tit. 26, r. 26-A5303

Source: Notice of Final Rulemaking published at 55 DCR 12490, 12491 (December 12, 2008); as corrected by Errata Notice published at 58 DCR 2413 (March 18, 2011)

Authority: The Administrator of the Office of Documents and Administrative Issuances (ODAI), pursuant to the authority set forth in section 309 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1203; D.C. Official Code § 2-559) , and the Commissioner of the Department of Insurance, Securities and Banking (DISB), pursuant to the authority set forth in section 101(b) of the Medical Malpractice Amendment Act of 2006, effective March 14, 2007 (D.C. Law 16-263; D.C. Official Code §§ 31-2703 (f-1)(1)(B) and (f-1)(3)).