N.M. Admin. Code § 1.6.2.9

Current through Register Vol. 35, No. 21, November 5, 2024

Section 1.6.2.9 - TOTAL PREMIUM DEVELOPMENT

A. At least one month prior to the date of the annual premium notice, the RMD shall develop total premiums for each line of coverage to which this rule applies. A total premium shall be developed separately for different risk groups determined by the director.

B. The total premiums for a given line of coverage for a particular risk group shall be the annual average total experience for that risk group and line of coverage for the five most recent consecutive coverage years, disregarding the current year; provided that the director may, in his discretion, increase or decrease the total premium so calculated for any risk group and line of coverage by an amount not to exceed forty percent (40 percent).

C. In developing any total premium, the director may disregard or treat separately any particular experience which he feels would distort the experience as a whole of the risk group.

D. After developing total annual premium, the director shall determine what portion of premium for each risk group for each line of coverage shall be collected through exposure rating and what portion, if any, through experience rating. Lines of coverage with less than $200,000 total annual premium or which experience smaller numbers of claims may, in the director's discretion, be rated solely on exposure.

N.M. Admin. Code § 1.6.2.9

6/14/1997; 1.6.2.9 NMAC - Rn, 1 NMAC 6.2.9; 9/15/2004