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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

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rate filing best practices alaska

Rate Filing Best Practices Alaska

Sarah McNair-Grove, FCAS, MAAA

Actuary

Alaska Division of Insurance

complete
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
complete3
Complete
  • Filing method identified
    • Flex rate
    • File and use
    • Prior approval
  • Revisions or replacements
    • Prior state identification number
    • Marked copy showing revisions
complete4
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    • Withdrawn or disapproved state identification number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
loss cost adjustment filings
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

loss cost adjustment filings6
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
filing methods prior approval
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
filing methods flex rate
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
filing methods flex rate9
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
filing methods flex rate10
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)
filing methods file and use
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
content
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
schedule rating plans
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
schedule rating plans14
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
other filings
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