2006 Louisiana Laws - RS 22:1407 — Rate filing

§1407.  Rate filing

A.(1)  Every insurer whose rates are subject to regulation under the provisions of this Part shall file with the office of property and casualty, except as to excess insurance coverage, and inland marine risks which by general custom of the business are not written according to manual rates or rating plans, every manual, minimum, class rate, rating schedule or rating plan and every other rating rule, and every modification of any of the foregoing which it proposes to use.  Every such filing shall state the proposed effective date thereof and shall indicate the character and extent of the coverage contemplated.  Specific inland marine rates on risks specifically rated, made by a rating organization, shall be filed with the office of property and casualty.

(2)  When a filing made pursuant to this Subsection is not accompanied by the information upon which the insurer or rating organization supports such filing, and the office of property and casualty does not have sufficient information to determine whether such filing meets the requirements of this Part, it shall require such insurer or rating organization to furnish the information upon which it supports such filing, and in such event the waiting period shall commence as of the date such information is furnished.  The information furnished in support of a filing may include:

(a)  The experience or judgment of the insurer or rating organization making the filing,

(b)  Its interpretation of any statistical data it relies upon,

(c)  The experience of other insurers or rating organizations, or

(d)  Any other relevant facts.

(e)  A filing and all information pertaining thereto shall be open to public inspection when filed.

(3)  The Louisiana Insurance Rating Commission is authorized to verify statistical data included in any filing made pursuant to this Section either by requiring substantiating written documentation or by inspecting records of insurers or rating organizations at home or branch offices of such organizations.

B.  Each insurer shall satisfy its obligation to make such filings by filing its rate requests individually with the Louisiana Insurance Rating Commission.  A specific rate for an insurer may only be filed by that insurer, except as designated or authorized by the Louisiana Insurance Rating Commission because of lack of credibility of data in the statistical base.  Informational filings may be made by a licensed rating organization, but such informational filings shall not include specific rates, except as provided in R.S. 22:1409(G).  An insurer may become a member of, or a subscriber to, a licensed rating organization which makes informational filings; provided that, except with respect to mandatory membership in the Property Insurance Association of Louisiana as provided in R.S. 22:1405, nothing contained in this Part shall be construed as requiring any insurer to become a member of or a subscriber to any rating organization.

C.  The commission shall review filings as soon as reasonably possible after they have been made with it in order to determine whether they meet the requirements of this Part, and no such filings shall become effective except as provided in this Part.

D.  Subject to the exceptions specified in Subsections E and F of this Section, each filing shall be on file for a waiting period of forty-five days before it becomes effective.  Upon written application by such insurer or rating organization, the commission may authorize a filing which it has reviewed to become effective before the expiration of the waiting period.  A filing shall be deemed to meet the requirements of this Part unless disapproved by the commission within the waiting period in accordance with R.S. 22:1408.

E.  Specific inland marine rates on risks specially rated by a rating organization shall become effective when filed and shall be deemed to meet the requirements of this Part until such time as the commission reviews the filing and so long thereafter as the filing remains in effect.

F.  When a filing of adjustments of rates for existing classifications of risks (1) does not involve a change in the relationship between such rates and the expense portion thereof, and (2) does not involve a change in rate relativities among such classifications on any basis other than loss experience, such filing shall become effective upon the date or dates specified in the filing and shall be deemed to meet the requirements of this Part: provided that this Subsection shall not apply to public property rates as provided for under R.S. 22:1421, nor to surety or worker's compensation insurance.

G.  Under such rules and regulations as the commission shall adopt, the commission may, by written order, suspend or modify the requirements of filing as to any kind of insurance, subdivision, or combination thereof, or as to classes of risks, the rates for which cannot practicably be filed before they are used.  Such order, rules, and regulations shall be made known to insurers and to rating organizations affected thereby.  The commission may make such examination as it may deem advisable to ascertain whether any rates affected by such order meet the requirement of filing as to any kind of insurance, subdivision, or combination thereof, or as to classes of risks, the rates for which cannot practicably be filed before they are used.  Such orders, rules, and regulations shall be made known to insurers and rating organizations affected thereby.  The commission may make such examination as it may deem advisable to ascertain whether any rates affected by such order meet the standards set forth in R.S. 22:1404(2).

H.  Upon the written application of the insured, stating his reasons therefor, filed with and approved by the commission, a rate in excess of that provided by a filing otherwise applicable may be used on any specific risk.

I.  Any rate being legally utilized by an insurer on September 1, 1988 shall remain in full force and effect until changed by the insurer through a rate filing approved by the Louisiana Insurance Rating Commission.

J.  Any insurer who makes application to the Louisiana Rating Commission for a rate filing shall provide in their application details as to what discount or reduced rate will be given to insureds who comply with the State Uniform Construction Code.

K.  Any insurance company licensed to issue workers' compensation insurance policies in the state of Louisiana, whose rates are subject to the provisions of this Part, may file rates on an actuarially justified class code basis with the Louisiana Insurance Rating Commission and use the rates ninety days after the filing.  Insurance companies licensed to issue workers' compensation policies shall not file and use any rates in excess of an average of twenty percent annually of its workers' compensation insurance rates in the state without prior approval of the Insurance Rating Commission.

L.  Repealed by Acts 2003, No. 456, §2.

Acts 1958, No. 125.  Amended by Acts 1960, No. 296, §1; Acts 1964, No. 362, §1; Acts 1966, No. 136, §1; Acts 1978, No. 523, §1; Acts 1978, No. 525, §1; Acts 1983, 1st Ex.  Sess., No. 1, §6; Acts 1988, No. 357, §1, eff. Sept. 1, 1988; Acts 1991, No. 814, §2; Acts 2003, No. 456, §§1 and 2; Acts 2005, No. 12, §2, eff. Nov. 29, 2005.