Section Ins 1201.13 - Rate Deviation Procedures(a) If an insurer desires to use a premium rate or schedule of premium rates that is higher than the actual premium rates established by this part and which are shown in Ins 1201.18, an insurer may at any time file a request for a rate deviation with the commissioner.(b) Eligibility criteria for rate deviations shall be as follows: (1) An insurer may request a rate deviation for any one single account or for any combination of single accounts of the insurer;(2) Insurers who are seeking approval of the third or more rate deviation for an account or accounts having the same plan of benefits within the same class of business, shall include in the rate deviation request a request for a rate deviation based on all of the insurer's accounts belonging to the class of business and plan of benefits for which a rate deviation has or is being requested. Unless the experience is 100% credible, any rate deviation request where the deviated rate exceeds the calculated deviated rate based on all of the insurer's accounts belonging to the class of business and plan of benefits for which a rate deviation has or is being requested by more than 25% shall be disapproved;(3) Rate deviations shall be considered by the commissioner only if the experience reported in support of a requested rate deviation can be assigned a credibility factor of 50 percent or more; and(4) A rate deviation request shall not be considered if the experience submitted in support of the request covers a period of less than one complete experience year.(c) Calculation procedures for rate deviation requests shall be as follows: (1) Rate deviation requests that are submitted to the commissioner shall be submitted on Form B;(2) All information and calculations required for Form B shall be completed for rate deviation requests;(3) As an exception to (1) above, if an insurer desires to request a rate deviation that is based on considerations or methods of calculation other than those contemplated by Form B, the insurer shall advise the commissioner of this intention upon submission of such a deviation request;(4) In such cases as in (3) above, the insurer shall provide a completed Form B, but may also provide any other data or method of calculation to support its request that the requested rate deviation will or can reasonably be expected to produce the appropriate target loss ratio as defined in Ins 1201.03(ac);(5) If any part of the experience submitted in support of a requested rate deviation was included in the experience considered by the commissioner in approving any other rate deviation request, the insurer shall also submit a rate deviation request appropriately modified or appropriately adjusted to reflect the proposed bifurcation;(6) Notwithstanding Ins 1201.11(f), if an insurer desires to request a rate deviation for an account or combination of accounts and where the experience of the account or combination of accounts in this state alone is less than 50 percent credible, the insurer may combine the New Hampshire experience with that of other jurisdictions;(7) In such cases in (6) above, the commissioner shall give greater weight to New Hampshire experience that is combined with contiguous states as compared to combinations involving broader geographical areas;(8) When requesting a rate deviation and especially where necessary to establish sufficient credibility, an insurer may include the experience produced by the account with previous insurers;(9) The procedure in (8) above may also be used with a combination of accounts provided the combination accounts for at least 90% of the earned premiums as the combination of the previous insurers; and(10) In no event shall the commissioner approve a rate deviation request if any of the supporting experience was obtained from an experience period prior to the most recently completed experience period.(d) Implementation and use of rate deviations shall be as follows: (1) Upon the approval of any rate deviation request by the commissioner, the premium rate filing requirements of RSA 408-A:7 which are applicable to said deviated rates shall be deemed to be satisfied;(2) The commissioner shall have 30 days after the receipt of any rate deviation request to disapprove the request as submitted;(3) If the commissioner fails to disapprove the deviation requested within 30 days of his or her receipt of the request, the request shall be deemed approved and the insurer may implement the rate deviation beginning on the effective date requested on Form B;(4) No approved rate deviation shall be implemented prior to the effective date requested on Form B;(5) The insurer shall notify the commissioner in the event an approved rate deviation is implemented at a date later than the date requested as the effective date on Form B;(6) The approval for any rate deviation shall automatically expire following the completion of the period of time corresponding to the period of experience in years used to establish support for the rate deviation; and(7) An insurer may request a continuance of or a new rate by submitting their request at least 30 days before the date upon which approval for any rate deviation expires; however, a rate deviation may not be changed more often than once during any 12-month period.N.H. Admin. Code § Ins 1201.13
#1900, eff 1-1-82; ss by #2441, eff 1-1-84; ss by #4287, eff 7-1-87; ss by #5650, eff 7-1-93, EXPIRED 7-1-99
New. #7146, eff 4-1-00, EXPIRED: 4-1-08
New. #9611, eff 1-4-10
Amended by Volume XXXVIII Number 06, Filed February 8, 2018, Proposed by #12474, Effective 2/2/2018, Expires 2/2/2028.