Current through Register Vol. 54, No. 24, June 15, 2024
Section 120.3 - Rates/loss costs(a) Rating organizations will no longer develop or file advisory final rates that contain provisions for expenses and profit, including investment income or consideration of the time value of money, or both. Instead, for workers compensation insurance, rating organizations will develop and file for approval with the Commissioner in accordance with Article VII of the act (___P.___S.___) a reference filing containing advisory prospective loss costs and supporting actuarial and statistical data, including a discussion of those considerations enumerated in the Statement of Principles of the Casualty Actuarial Society regarding property and casualty loss reserving.(b) Loss costs filings will contain the advisory prospective loss costs and the underlying loss data and other supporting actuarial information for calculations or assumptions underlying those loss costs. It is anticipated that loss based assessments will be included in prospective loss costs.(c) After a loss costs filing has been filed with the Department and approved, the rating organization will provide its participating insurers with a copy of the approved reference filing.(d) The rating organization may print and distribute manuals of prospective loss costs as well as rules and other supplementary rating information described in section 2 A of the Calculation of Company Loss Cost Multiplier Form which appears in Appendix A.(e) With the initial prospective loss costs reference filing, rating organizations will no longer develop or file minimum premiums, minimum premium formulas, loss constants, premium discounts or expense constants.