R590. Insurance, Administration.R590-140. Reference Filings of Rate Service Organization Prospective Loss Costs.
R590-140-1. Authority.
This rule is promulgated by the commissioner pursuant to Section 31A-2-201.
R590-140-2. Purpose and Scope.
(1)(a) The purpose of this rule is to regulate reference filings and insurers that make reference filings.
(b) This rule establishes procedures and requirements for a property and casualty insurer to comply with the requirements of Section 31A-19a-203 regarding rate and supplementary rate information filings that refer to and incorporate a rate service organization's prospective loss costs filings.
(2)(a) This rule applies to any kind or line of direct insurance written on risks or operations except insurance exempt under Subsection 31A-19a-101(2)(a)(ii).
(b) Except for an insurer exempt under Section 31A-19a-103, this rule applies to an insurer making a filing under Section 31A-19a-203.
R590-140-3. Definitions.
Terms used in this rule are defined in Sections 31A-1-301 and 31A-19a-102. Additional terms are defined as follows:
(1) "Reference filing" means a prospective loss costs filing, a supporting information filing, or both, made by a licensed rate service organization.
R590-140-4. Filings of Advisory Prospective Loss Costs and Adjustment Factors.
(1) A rate service organization may develop and make a reference filing containing advisory prospective loss costs.
(2) Each reference filing shall:
(a) contain the statistical data and supporting information for each calculation or assumption underlying the prospective loss costs; and
(b) comply with the rate filing requirements under Section 31A-19a-203.
(3) An insurer may file rates if the insurer:
(a) becomes a participating insurer of a licensed rate service organization that makes an advisory prospective loss costs reference filing;
(b) authorizes the commissioner to accept a reference filing on the insurer's behalf; and
(c) files the information required in Section R590-140-5 with the commissioner.
(4) If an insurer follows the procedure outlined in Subsection (3), the insurer's rates shall be:
(a) the prospective loss costs filed by the rate service organization; and
(b) any adjustment in effect for the insurer under Section R590-140-5 to the filed prospective loss costs.
(5) An insurer's adjustment regarding a prospective loss costs filing becomes effective in accordance with the rate filing requirements under Section 31A-19a-203.
R590-140-5. Required Filing Documents.
(1) An insurer's filing that refers to a rate service organization's reference filing of prospective loss costs shall include:
(a) the Utah Insurer Loss Costs Multiplier Filing Forms pages one and two; and
(b) if applicable, the Expense Constant Supplement.
(2) Sample forms of the Utah Insurer Loss Costs Multiplier Filing Forms and the Expense Constant Supplement are available on the department's website: https://insurance.utah.gov.
R590-140-6. Supplementary Rate Information.
(1) A rate service organization may develop and file supplementary rate information.
(2) Each supplementary rate information filing shall comply with Sections 31A-19a-203 and 31A-19a-205.
(3) An insurer may file supplementary rate information if the insurer:
(a) becomes a participating insurer of a licensed rate service organization; and
(b) authorizes the commissioner to accept a filing by the rate service organization on the insurer's behalf.
(4) Except for a modification filed by the insurer, the insurer's supplementary rate information filing must be the same as the rate service organization's supplementary rate information filing.
R590-140-7. Filing of Rate and Manual Pages.
(1) An insurer is not required to develop or file final rate pages with the commissioner if the insurer's final rates are determined solely by applying the insurer's adjustment in the Utah Insurer Loss Costs Multiplier Filing Forms pages one and two and, if applicable, the Expense Constant Supplement to the prospective loss costs contained in the reference filing and printed in the rate service organization's rating manual.
(2) An insurer must file final rate pages with the commissioner if:
(a) the insurer prints and distributes the final rate pages for the insurer's own use; and
(b) the rates are based on the application of the insurer's filed adjustments to a rate service organization's prospective loss costs.