1 / 15

Rate Filing Best Practices Alaska

Rate Filing Best Practices Alaska. Sarah McNair-Grove, FCAS, MAAA Actuary Alaska Division of Insurance. Complete . Paper Filings 2 stamped envelopes 3 copies of transmittal document One copy of filing material and supporting documents SERFF Filings State specific fields completed

baakir
Download Presentation

Rate Filing Best Practices Alaska

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Rate Filing Best Practices Alaska Sarah McNair-Grove, FCAS, MAAA Actuary Alaska Division of Insurance

  2. Complete • Paper Filings • 2 stamped envelopes • 3 copies of transmittal document • One copy of filing material and supporting documents • SERFF Filings • State specific fields completed • Previous state tracking number is required field

  3. Complete • Filing method identified • Flex rate • File and use • Prior approval • Revisions or replacements • Prior state identification number • Marked copy showing revisions

  4. Complete • Resubmission • Withdrawn or disapproved state identification number • Address all questions raised • Effective Date • Regulation 3 AAC 31.200 – 217; 3 AAC 31.225 • Bulletin B05-09

  5. Loss Cost Adjustment Filings • Include completed Reference Filing Adoption Forms • Bulletin 96-05 • Rate level change calculation should be done correctly • Support for deviations must be included http://www.commerce.state.ak.us/insurance/bulletins/96-05.htm

  6. Loss Cost Adjustment Filings • Rating organization filing that is in effect on effective date of loss cost adjustment filing must be adopted • 3 AAC 29.220; 3 AAC 29.240; 3 AAC 31.240

  7. Filing Methods – Prior Approval • Prior approval • Medical malpractice • Workers’ compensation • Assigned risk auto • 15-day waiting period with a 15-day extension • Response period of 30 days with a 15 day extension • Failure to respond or submission of an incomplete response will result in withdrawal of filing • AS 21.39.041

  8. Filing Methods – Flex Rate • All lines of business except medical malpractice, workers’ compensation and assigned risk • Cumulative rate change calculated from effective date to 12 months before effective date is not greater than +/-10% • Effective date may not be earlier than date received by division

  9. Filing Methods - Flex Rate • All rate standards apply to flex rate filings including not inadequate, excessive or unfairly discriminatory • Filing must include • Overall rate level calculation • Expenses including consideration of investment income • Exhibit showing rate filings effective within 12 months immediately preceding proposed effective date by company • Maximum and minimum rate change

  10. Filing Methods – Flex Rate • Additional supporting information may be requested if needed to determine that filing complies with Alaska law • Director may issue an order disapproving the filing if it does not comply with Alaska law • AS 21.39.210; 3 AAC 31.225(c)(3)

  11. Filing Methods – File and Use • All other rate filings that are not prior approval or eligible for flex rating • All supplementary rating information, including rule filings – 3 AAC 31.210(3) • AS 21.39.220

  12. Content • Support must be sufficient so that director can determine the filing meets Alaska law • Trend • Loss development • Credibility • Expenses • Investment income • Description of methodology used • Alaska specific premium and loss data

  13. Schedule Rating Plans • Filing must include • Eligibility criteria • Description of each risk characteristic • Broad categories like Classification Peculiarities are not acceptable • Range of debits or credits for each risk characteristic • Total maximum debit or credit • Previous plan must be identified and withdrawn if a revision is made

  14. Schedule Rating Plans • Acknowledgment of compliance • Uniform application to all eligible insureds • Apply at each policy renewal • Debit or credit only for risk characteristics described in plan • Documentation worksheet • 3 AAC 29.420; 3 AAC 29.430

  15. Other Filings • “Me-Too” Filings • Demonstrate applicability to filer • Approved in Alaska? Identify approved filing • (a) Rate Filings • Manual rules describing how rate will be calculated • Formulas, rating factors, guidelines, risk characteristics • Order R94-02

More Related