Section Ins 2801.02 - Definitions(a) "Advisory organization" means an organization defined pursuant to RSA 412:3 II.(b) "Expenses" means that portion of a rate attributable to commission expense and other acquisition costs, field supervision costs, collection costs, general administrative costs, taxes, licenses, and fees.(c) "Expense constant" means an additive component of a rate that is used to recognize a minimum cost associated with a policy regardless of its size.(d) "Fixed expense" means a cost the value of which is independent of the size of the policy.(e) "Investment income" means income derived from the insurer's invested assets attributed to policyholder supplied funds.(f) "Loss cost multiplier" means a multiplicative factor applied to a prospective loss cost to develop a rate.(g) "Prospective loss costs" means that portion of a rate that excludes profit and expenses except for loss adjustment expenses and is based on historical aggregate losses and loss adjustment expenses.(h) "Rate" means the cost of insurance per exposure unit, prior to any application of individual risk variations based on loss or expense considerations. The term does not include minimum premiums.(i) "Reference filing" as used in this chapter, means an advisory organization's filing of prospective loss costs as defined in (g) above that insurers can adopt and incorporate in whole or in part in support of their own filings.(j) "Supplementary rating information" means any manual, minimum premium, rating schedule or plan of policy writing rules, rating rules, classification system, territory codes and descriptions, rating plans, and any other similar information needed to determine the applicable premium for an insured.(k) "Underwriting contingencies" means the provisions included in the rate to account for risk exposure not foreseen as part of the development of expected loss or expense.(l) "Underwriting profit" means the difference between the premium an insurer collects and the expected level of total losses, loss expenses and all other expenses.(m) A "variable expense" means a cost the value of which is dependent on the size of the policy.N.H. Admin. Code § Ins 2801.02
#5655, eff 7-1-93; ss by #6984, eff 5-1-99; ss by #8936, eff 8-1-07
Amended by Volume XXXV Number 36, Filed September 10, 2015, Proposed by #10920, Effective 9/1/2015, Expires9/1/2025.