2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 515A - WORKERS' COMPENSATION LIABILITY INSURANCE
515A.7 - UNIFORM RATING PLANS AND DEVIATIONS.

        515A.7  UNIFORM RATING PLANS AND DEVIATIONS.
         1. a.  Every insurer shall adhere to the filings made on its
      behalf by a rating organization except that any such insurer may file
      a deviation from the class rates, schedules, rating plans, or rules,
      or a combination thereof for approval by the commissioner.  The
      deviation filed shall specify the basis for the modification and a
      copy shall also be sent simultaneously to such rating organization.
      In considering the deviation filed, the commissioner shall give
      consideration to the available statistics and the principles for rate
      making as provided in section 515A.3.  The commissioner shall approve
      the deviation filed for such insurer if the commissioner finds it to
      be justified and it shall thereupon become effective.  The
      commissioner shall disapprove the deviation filed if the commissioner
      finds that the deviation does not meet the requirements of this
      chapter.
         b.  A deviation may be filed for approval by the commissioner
      as follows:
         (1)  An insurer may file for approval by the commissioner of a
      uniform percentage rate deviation to be applied to the class rates of
      the rating organization's filing subject to limitations as set forth
      by the commissioner by rule.  A rate deviation from the approved
      class rates of a rating organization shall not cause the rate charged
      a policyholder to exceed the approved assigned risk rates.
         (2)  A rating organization or insurer may offer retrospective
      plans in policies which generate at least one hundred thousand
      dollars in annual countrywide premiums on workers' compensation
      liability insurance.
         (3)  An insurer may offer large deductible programs on policies
      which generate at least one hundred thousand dollars in annual
      countrywide premiums on workers' compensation liability insurance.
      The minimum large deductible which may be offered is twenty-five
      thousand dollars, which may be applied to indemnity and medical
      losses.
         (4)  An insurer may offer small deductible programs with
      deductibles in a range of up to ten thousand dollars and which apply
      only to medical losses.  Losses shall be reported on a net basis in
      accordance with the statistical plan filed by a rating organization.

         (5)  An insurer may adopt a scheduled or rating plan providing for
      credits or debits in an amount not exceeding the maximum modification
      allowed as set forth by the commissioner by rule.  This amount shall
      be in addition to the permitted deviations set forth in subparagraphs
      (1) through (4).
         (6)  The commissioner may authorize other types of deviations by
      rule when there is no approved rate, schedule, rating plan, or rule
      applicable to the deviation filed, on file with the insurance
      division for a rating organization.
         2.  The commissioner may adopt rules pursuant to chapter 17A to
      limit deviations and maximum schedule or rating plan modifications.
         3.  All dividends shall be paid based upon loss sensitivity.
      Dividends are deemed a return of profit to insureds.  Accordingly,
      dividends shall not be guaranteed by an insurer without regard to
      profits.  Dividends may be offered in conjunction with deviated rates
      or with scheduled rates or in combination therewith.  For the
      purposes of this subsection, "loss sensitivity" means the
      profitability of the policyholder individually or as a member of a
      homogenous group.  

         Section History: Early Form

         [C50, 54, 58, 62, § 515A.7, 515B.7; C66, 71, 73, 75, 77, 79, 81, §
      515A.7] 

         Section History: Recent Form

         2008 Acts, ch 1123, §36, 57