Section R590-225-8 - Procedures for Rate and Supplementary Information Filings(1) Rates and supplementary information are use and file filings.(a) Title and workers compensation rates and supplementary information are file before use filings.(b) A service contract provider, a bail bond agency, or a guaranteed asset protection waiver provider is exempt from this section.(c) A rate filing for private passenger auto, homeowners, or workers compensation TOI shall include a certification signed by a qualified actuary stating that the rates are not inadequate, excessive, or unfairly discriminatory under Subsection 31A-19a-201(1).(2) Filings by an RSO authorized by an insurer to make a prospective loss cost, supplementary information filing, or both, are not required if the insurer implements the filing submitted by the RSO.(a) If the effective date is delayed, the filing is not adopted, or the filing is altered, a filing is required.(b) A filing shall be received by the department within 30 days of the effective date established by the RSO.(c) Copies of an RSO's manual pages are not required to be filed when referenced in an RSO filing.(3)(a) If an RSO is not authorized to file the prospective loss cost, supplementary rating information, or both, on an insurer's behalf, the insurer:(a) shall include a letter stating that the insurer adopts the RSO prospective loss cost, supplementary rating information filing, or both, for the insurer's use.(b) A filer shall file copies of any RSO manual pages as if they are the insurer's own and provide the insurer's actuarial justification.(4) A "Me Too" filing, referencing a filing submitted by another licensee, is not permitted.(5) If a filing is for more than one insurer and the supporting data and manual pages are identical for each insurer included in the filing, only one copy of the supporting data and manual pages shall be submitted.(a) Rate and supplementary information filings shall be supported and justified by each insurer.(b) A justification shall include: (i) a submission of each factor used in determining the initial supplementary information and rates or changes in existing supplementary information and rates; and(ii) a complete explanation of each factor and how it is used.(c) Underwriting criteria are not required unless they directly affect the rating of the policy.(d) Underwriting criteria used to differentiate between rating tiers is required.(6)(a) When submitting a filing for a rating plan, a rating modification plan, or a credit and debit plan, an insurer shall include:(i) a statement identifying the arithmetic process used and whether factors will be added or multiplied when applying them to base rates; and(ii) a justification for the method used.(b) A filing shall be rejected as incomplete if it does not provide the information in Subsection (6).(7) Utah and countrywide statistical data for the latest three years available shall be submitted with each filing.(a) The data shall include: (iv) establishment of expense factors; and(v) expected loss ratios.(b) Calculations used in establishing rates from loss experience shall be shown, including the establishment of trend factors and loss development factors.(c) If the information in Subsection (7) is not available, a detailed explanation of the reason the information is not available shall be provided with the filing.(8) Prospective loss cost and loss cost multiplier. (a) An individual insurer adjustment to the RSO prospective loss cost must be made as part of the calculation of the loss cost multiplier and must be included in the Utah Insurer Loss Cost Multiplier Filing Forms.(b) This form allows for the inclusion of an individual insurer modification of the RSO prospective loss cost.(9) Procedures for Reference Filings to Advisory Prospective Loss Cost. (a) An RSO develops and files a reference filing containing advisory prospective loss cost and supporting actuarial and statistical data.(b) Each insurer must individually determine the rates it will file and the effective date of any rate changes.(c) If an insurer that is a member, subscriber, or service purchaser of an RSO that uses the prospective loss cost in an RSO reference filing in support of its own filing, the insurer shall make a filing using the Utah Insurer Loss Cost Multiplier Filing Forms.(d) The insurer's filed rates are a combination of the RSO's prospective loss cost and the loss cost multiplier contained in the Utah Insurer Loss Cost Multiplier Filing Forms.(e) An insurer may file a modification of the prospective loss cost in the RSO reference filing based on its own anticipated experience.(f) An actuarial justification is required for a modification, upward or downward, of the prospective loss cost in the reference filing.(g) An insurer may request to have its loss cost adjustments remain on file and reference all subsequent RSO prospective loss cost reference filings.(i) Upon receipt of a subsequent RSO reference filing, the insurer's filed rates are a combination of the RSO's prospective loss cost and the loss cost adjustments contained in the Utah Insurer Loss Cost Multiplier Filing Forms on file and are effective on the effective date of the prospective loss cost.(ii) The insurer need not file any further filings.(h) If a filer wants to have its filed loss cost adjustments remain on file, but intends to delay, modify, or not adopt a particular RSO's reference filing, the filer shall make an appropriate filing.(i) An insurer's filed loss cost adjustments shall remain in effect until the filer withdraws the filing or files a revised Utah Insurer Loss Cost Multiplier Filing Form.(j) A filer may file other relevant information.(k) If an insurer proposes to use minimum premiums, it must file those minimum premiums.(10) Supplementary Rate Information.(a) An RSO filing containing a revision of rules, relativities, and supplementary rate information shall include:(i) policy-writing rules;(iii) classification codes and descriptions; and(iv) territory codes, descriptions, and rules, including increased limits factors, classification relativities, or similar factors.(b) A supplementary rate information filing is made by an RSO on behalf of an insurer that authorizes the RSO to file rules, relativities, and supplementary rating information on its behalf.(c) An RSO may print and distribute a manual of rules, relativities, and supplementary rating information.(d) If an insurer authorizes an RSO to file on its behalf and the insurer decides to use the revisions and the RSO's effective date, the insurer need not file any further filings.(e) If an insurer authorizes an RSO to file on its behalf and the insurer decides to use the revisions as filed, and with a different effective date, the insurer shall notify the commissioner of the insurer's effective date within 30 days of the RSO's effective date.(f) If an insurer authorizes an RSO to file on its behalf, and the insurer decides not to use the revision, the insurer shall notify the commissioner within 30 days of the RSO's effective date.(g) If an insurer authorizes an RSO to file on its behalf, and the insurer decides to use the revision with modification, the insurer must file the modification specifying the basis for the modification and the insurer's effective date within 30 days of the RSO's effective date.(11) Consent-to-Rate Filing. The filing description shall:(a) indicate that the filing is a consent-to-rate filing;(c) show the proposed rate; and(d) set forth the reasons for the difference.(12) Individual Risk Filing.(a) Rule R590-127 sets forth when an individual risk filing is permitted.(b) An individual risk filing shall be filed with the commissioner.(i) The filing shall consist of a copy of the declarations page, a copy of any pertinent coverage form or rating schedule, and premium development.(ii) The filing description shall indicate that it is an individual risk filing, and contain the underwriter's explanation for the filing.(13) Tiered rating plans are permitted by a single insurer or insurer group with common ownership. (a) A filing shall show that the tiers are based on mutually exclusive underwriting rules, based on clear, objective criteria that lead to a logical distinguishing of potential risk.(b) A filing shall provide supporting information that shows a clear distinction between the expected losses and expenses for each tier.(c) If an insurer group uses a tiered rating structure, the group of insurers may not all file the same loss cost multiplier and then file standard percentage deviations.(i) A difference shall be demonstrated in the loss cost multiplier formula, either as a modification of the RSO prospective loss cost or in the insurer expense factor.(ii) An individual insurer adjustment or modification shall be supported by actuarial data that establishes a reasonable standard for measuring probable insurer variations in historical or prospective experience, underwriting standards, expense and profit factors.Utah Admin. Code R590-225-8
Amended by Utah State Bulletin Number 2018-1, effective 12/8/2017Amended by Utah State Bulletin Number 2023-06, effective 3/10/2023