CSHB 216(L&C)(title am): "An Act relating to policy forms and rates that require filing; requiring the filing of certain rates, rating schedules, loss cost adjustments, and rating plans with the director of the division of insurance; establishing a procedure for the director of the division of insurance to obtain additional supporting information from an insurer for a filing; relating to an application for a rate other than that in an applicable rate filing; requiring prior approval for certain rating systems and the procedure for approving a filing; providing for the issuance of orders relating to nonconforming filings after a hearing; relating to the regulation of joint underwriting and joint reinsurance; relating to flex rating; relating to file and use, filing of rates, supplementary rate information, and supporting information; authorizing the director of the division of insurance to require prior approval; relating to form filing subject to prior approval and form filing subject to file and use; and providing for penalties relating to file and use."
00 CS FOR HOUSE BILL NO. 216(L&C)(title am) 01 "An Act relating to policy forms and rates that require filing; requiring the filing of 02 certain rates, rating schedules, loss cost adjustments, and rating plans with the director 03 of the division of insurance; establishing a procedure for the director of the division of 04 insurance to obtain additional supporting information from an insurer for a filing; 05 relating to an application for a rate other than that in an applicable rate filing; 06 requiring prior approval for certain rating systems and the procedure for approving a 07 filing; providing for the issuance of orders relating to nonconforming filings after a 08 hearing; relating to the regulation of joint underwriting and joint reinsurance; relating 09 to flex rating; relating to file and use, filing of rates, supplementary rate information, 10 and supporting information; authorizing the director of the division of insurance to 11 require prior approval; relating to form filing subject to prior approval and form filing 12 subject to file and use; and providing for penalties relating to file and use."
01 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 02 * Section 1. AS 21.09.110(b) is amended to read: 03 (b) Policy forms and rates that require filing [APPROVAL] under AS 21.39 or 04 AS 21.42 shall be submitted under AS 21.39.041, AS 21.39.220, or AS 21.42.120(b) 05 [AS 21.39.040(j) OR AS 21.42.120(g)] and may not be submitted with the application 06 for a certificate of authority. 07 * Sec. 2. AS 21.39.040(a) is repealed and reenacted to read: 08 (a) Each insurer shall file with the director, except as to inland marine risks, 09 which by general custom of the business, are not written according to manual rates or 10 rating plans, and except for rates for commercial insurance for which the director, by 11 regulation authorizes an informational filing as set out in (k) of this section, every 12 manual, minimum, class rate, rating schedule, loss cost adjustment, or rating plan and 13 every other rating rule, and each modification of any of them that it proposes to use. 14 Each filing 15 (1) shall be made under the applicable filing procedures in 16 AS 21.39.041, 21.39.210, or 21.39.220; 17 (2) must state the proposed effective date; and 18 (3) must indicate the character and extent of the coverage 19 contemplated. 20 * Sec. 3. AS 21.39.040(d) is repealed and reenacted to read: 21 (d) When a filing is not accompanied by the information upon which the 22 insurer supports the filing, and the director does not have sufficient information to 23 determine whether the filing meets the requirements of this chapter, the director shall 24 require the insurer to furnish the information upon which the insurer supports the 25 filing. The waiting period in AS 21.39.041(a) or 21.39.220(b) begins on the date the 26 information is furnished to the director. The information furnished in support of a 27 filing may include (1) the experience or judgment of the insurer or rating organization 28 making the filing; (2) the insurer's interpretation of the statistical data it relies upon; 29 (3) the experience of other insurers or rating organizations; (4) any other relevant 30 factors. Specific inland marine rates on risks specially rated, made by a rating 31 organization, shall be filed with the director.
01 * Sec. 4. AS 21.39.040(g) is amended to read: 02 (g) Upon the written application of the insured describing the unusual 03 characteristics that are not otherwise contemplated in the filed rating plan, the 04 insurer may file [, STATING THE REASONS, FILED WITH AND APPROVED 05 BY THE DIRECTOR,] a rate other than a rate [IN EXCESS OF THAT] provided 06 for in an applicable rate filing that [BY A FILING OTHERWISE APPLICABLE] 07 may be used on a specific risk. The filing shall be made under the applicable filing 08 procedures in AS 21.39.041 or 21.39.220. 09 * Sec. 5. AS 21.39 is amended by adding a new section to read: 10 Sec. 21.39.041. Prior approval. (a) Except for workers' compensation 11 prospective loss cost filings and workers' compensation assigned risk pool rates by a 12 rating organization under AS 21.39.043, an insurer or rating organization shall file 13 medical malpractice, workers' compensation and assigned risk plan rating systems as 14 specified in AS 21.39.040(a) with the director for review and approval prior to use. 15 Each filing shall be on file for a waiting period of 15 days before it becomes effective. 16 This period may be extended by the director for an additional period not to exceed 15 17 days if the director gives written notice within the waiting period to the insurer or 18 rating organization that made the filing stating that additional time for the 19 consideration of the filing is required. The director shall approve the filing upon a 20 determination that the filing meets the requirements of this title. 21 (b) The filing must include the effective date. In place of a specific date, the 22 insurer or rating organization may specify a reasonable time period after approval for 23 the filing to be effective. 24 (c) Upon written application by the insurer or rating organization, the director 25 may authorize a filing that the director has approved to become effective before the 26 expiration of the waiting period. A filing shall be considered to meet the requirements 27 of this title unless disapproved by the director within the waiting period. 28 (d) If the insurer or rating organization fails to provide information requested 29 by the director under AS 21.39.040(d) within 30 days after the director requests the 30 information, the response period may be extended by the director for an additional 15 31 days upon written application of the insurer or rating organization within the initial 30-
01 day response period. The director shall consider the failure to provide information as 02 a request by the insurer or rating organization to withdraw the filing from further 03 consideration. 04 (e) A filing and supporting information shall be open to public inspection after 05 the filing becomes effective. 06 (f) If within the review period provided for in (a) of this section, the director 07 finds that a filing does not meet the requirements of this title, the director shall send to 08 the insurer or rating organization that made the filing written notice of disapproval of 09 the filing specifying in what respects the filing fails to meet the requirements of this 10 title and stating that the filing may not become effective. 11 * Sec. 6. AS 21.39.050(c) is amended to read: 12 (c) If at any time subsequent to the applicable review period provided for in 13 AS 21.39.041(a) or 21.39.220(b) [(a) OR (b) OF THIS SECTION], the director finds 14 that a filing does not meet the requirements of this title [CHAPTER], the director 15 shall, after a hearing held upon not less than 10 days written notice[,] specifying the 16 matters to be considered at the hearing and [,] given to each insurer and rating 17 organization that made the filing, issue an order specifying in what respects the filing 18 fails to meet the requirements of this title [CHAPTER] and stating when, within a 19 reasonable period thereafter, the filing shall be considered no longer effective. Copies 20 of the order shall be sent to each insurer and rating organization that made the filing. 21 The order may [SHALL] not affect a contract or policy made or issued before the 22 expiration of the period set out in the order. 23 * Sec. 7. AS 21.39.110(a) is amended to read: 24 (a) Each group, association, or other organization of insurers that engages in 25 joint underwriting or joint reinsurance is subject to regulation in accordance with this 26 section. In addition, joint underwriting is subject to all other provisions of this 27 chapter, except for AS 21.39.210, and joint reinsurance is subject to AS 21.39.120, 28 21.39.160, and 21.39.170. 29 * Sec. 8. AS 21.39 is amended by adding new sections to read: 30 Sec. 21.39.210. Flex-rating. (a) Except for workers' compensation, medical 31 malpractice, and assigned risk plan rates, an insurer's rate level increase or decrease
01 may take effect without prior approval if the cumulative rate level change for all 02 coverages combined, calculated from the effective date to 12 months before the 03 effective date, is not greater than 10 percent. 04 (b) An insurer may make multiple rate filings under this provision during any 05 12-month period if the cumulative rate level change is within the specified limitation 06 as described in (a) of this section. For an insurer adopting a rating organization 07 prospective loss cost filing, the cumulative rate level change includes both the rating 08 organization's prospective loss cost change as well as the insurer's loss cost adjustment 09 change. 10 (c) Notwithstanding any other provision of this title, for a policy governed by 11 this section, a filing that produces a rate level change within the limitations provided 12 in (a) of this section is effective without prior approval and may take effect on the date 13 specified in the filing, but not earlier than the date it is received by the division. A rate 14 level change within the limitation in (a) of this section may not be applied to a policy 15 until the beginning of the policy period. 16 (d) A filing submitted under (a) of this section must include an exhibit 17 showing the calculation of the overall rate level change and an exhibit showing the 18 insurer's expense provisions. An insurer submitting a loss cost adjustment filing shall 19 include supporting information showing how the loss cost adjustment is calculated. 20 The director may request additional supporting information if the director does not 21 have enough information upon which to determine if the filing meets the requirements 22 of this title. 23 (e) A filing submitted under (a) of this section is considered to comply with 24 this title. However, if the director determines that the filing does not meet the 25 requirements of this title, the director shall issue an order specifying in detail the 26 specific statutes the insurer has violated and the reasons the filing is not in compliance. 27 The order must state a reasonable future date on which the filing is to be considered no 28 longer effective. An order by the director under this subsection is prospective and 29 does not affect any contract issued or made before the effective date of the order. 30 (f) The director may adopt regulations implementing the provisions of this 31 section.
01 (g) This section does not apply to rating organizations or to any impaired or 02 insolvent insurer operating under a rehabilitation plan, an order of supervision, or an 03 impaired financial condition as determined by the director. 04 Sec. 21.39.220. File and use, filing of rates, supplementary rate 05 information, and supporting information. (a) An insurer's rate level increase or 06 decrease filing falling outside of the limitation provided in AS 21.39.210(a) is subject 07 to file and use provisions under this section, unless the filing is otherwise exempt from 08 those provisions under another provision in this chapter. A rate filing from a rating 09 organization shall be submitted to the director under the file and use provisions. A 10 rate filing from an insurer operating under a rehabilitation plan, an order of 11 supervision, or under an impaired financial condition as determined by the director 12 shall be submitted to the division under the prior approval provisions. The insurer 13 shall submit a filing for a new product or coverage introduction that does not have a 14 rate on file under the file and use provisions. 15 (b) Each insurer shall file with the director all rates, supplementary rate 16 information, and supporting information at least 30 days before the proposed effective 17 date. The director shall review the filing within 15 days. This period may be 18 extended by the director for an additional period not to exceed 15 days if the director 19 gives written notice within the initial 15 day period to the insurer or rating 20 organization that made the filing that states additional time for the consideration of the 21 filing is required. The waiting period is the 30-day period following the date the 22 director receives the filing. 23 (c) The filing must include the effective date that may not be before the end of 24 the waiting period. Upon written application by the insurer or rating organization, the 25 director may authorize a filing that the director has reviewed to become effective 26 before the expiration of the waiting period. 27 (d) A filing shall be considered to meet the requirements of this chapter and to 28 become effective unless disapproved by the director within the waiting period. 29 (e) The director shall disapprove a filing if the director finds that the filing 30 does not meet the requirements of this title. 31 (f) If the insurer or rating organization is unable to provide information
01 requested by the director under AS 21.39.040(d) within 30 days after the director's 02 request, the response period may be extended by the director for an additional 15 days 03 upon written application of the insurer or rating organization within the initial 30 day 04 response period. The director may disapprove the filing for failure to provide the 05 requested information during the response period. The disapproval notice must state a 06 reasonable future date on which the filing is to be considered no longer effective. 07 (g) A filing and supporting information shall be open to public inspection after 08 the director completes the review of the filing or after the filing becomes effective, 09 whichever is later. 10 (h) If within the waiting period in (b) of this section, the director finds that a 11 filing does not meet the requirements of this title, the director shall send to the insurer 12 or rating organization which made the filing, written notice of disapproval of the filing 13 specifying in what respects the filing fails to meet the requirements of this title and 14 shall state a reasonable future date on which the filing is to be considered no longer 15 effective. 16 * Sec. 9. AS 21.42.120(b) is repealed and reenacted to read: 17 (b) Each insurer or rating organization shall submit a filing under one of the 18 following procedures, clearly specifying the filing procedure under which the filing is 19 being made: 20 (1) for prior approval under AS 21.42.123; or 21 (2) for file and use under AS 21.42.125. 22 * Sec. 10. AS 21.42.120 is amended by adding a new subsection to read: 23 (i) The director may by order require an insurance document, form, or type of 24 insurance document or form as specified in the order, to be submitted for prior 25 approval if in the opinion of the director the approval of the insurance document, 26 form, or type of insurance document or form is necessary for the protection of the 27 public. 28 * Sec. 11. AS 21.42 is amended by adding new sections to read: 29 Sec. 21.42.123. Form filing subject to prior approval. (a) A prior approval 30 filing shall be made not less than 30 days before the effective date. At the end of the 31 30-day period the form filed shall be considered approved unless before the end of the
01 30-day period it has been affirmatively disapproved by the director. Approval of the 02 form by the director before the end of the 30-day period constitutes a waiver of the 03 unexpired portion of the waiting period. The director may extend by not more than an 04 additional 30 days the period for approving or disapproving the form, by giving notice 05 of the extension during the initial 30-day period. At the expiration of the extended 06 period, and in the absence of a prior approval or disapproval, the form shall be 07 considered approved. The director may, by order, at any time after the notice, and for 08 cause shown, withdraw the approval. 09 (b) The director may require the insurer or rating organization to revise the 10 filing to comply with this title. Failure of the insurer or rating organization to provide 11 the information within 30 days after the director's request, or an extension of the 12 period by the director for an additional 15 days upon written request of the insurer or 13 rating organization within the response period, is considered to be a request by the 14 insurer or rating organization to withdraw the filing from further consideration. 15 (c) The filing must state an effective date. In place of a specific date, the 16 insurer or rating organization may specify a reasonable time period after approval for 17 the filing to be effective. 18 (d) A prior approval filing shall be open to public inspection after the filing 19 becomes effective. 20 Sec. 21.42.125. Form filing subject to file and use; penalties. (a) A file and 21 use filing shall be filed with the director for a waiting period of not less than 30 days. 22 The period may be extended by the director or the insurer or rating organization for an 23 additional 30 days if notice is given within the initial 30-day period that additional 24 time is needed for the consideration of the filing. The filing may become effective at 25 the end of the waiting period unless disapproved by the director before the expiration 26 of the waiting period. 27 (b) The filing must state an effective date that must be after the waiting period. 28 Upon written notice by the insurer or rating organization, the director may authorize a 29 filing that has been reviewed to become effective before the expiration of the waiting 30 period. 31 (c) A file and use form filing must include a signed compliance certificate
01 certifying that the filing complies with this title. An authorized officer or state filings 02 manager of the insurer shall sign the compliance certificate stating that, to the best of 03 the individual's knowledge, the filing complies with this title. The director may issue 04 an order requiring an insurer who submits an incomplete or inaccurate compliance 05 certificate to submit future form filings for prior approval. The order must specify the 06 conditions under which the insurer may again submit filings under this section. In 07 addition to any other penalty provided by law, a person that the director finds has 08 submitted a materially false or misleading compliance certificate may be subject to 09 either a civil penalty of not more than $10,000 for each violation, or a civil penalty of 10 not more than $25,000 for each violation if the director finds that the person 11 knowingly violated the provisions of this title. A filing that does not include the 12 signed compliance certificate shall be reviewed under the prior approval procedure 13 under AS 21.42.123. In this subsection, "knowingly" has the meaning given in 14 AS 11.81.900. 15 (d) The director may require an insurer or rating organization to provide 16 additional information to demonstrate that a file and use filing meets the requirements 17 of this title or to revise the filing to meet the requirements of this title. If an insurer or 18 rating organization fails to provide the information within the waiting period described 19 in (a) of this section, the director shall consider the failure to be a request to withdraw 20 the filing from further consideration. 21 (e) A file and use filing shall be open to public inspection after the filing 22 becomes effective. 23 * Sec. 12. AS 21.39.050(a) and 21.39.070(b) are repealed.