2006 Louisiana Laws - RS 22:1410 — Deviations
A. Every member of or subscriber to the Property Insurance Association of Louisiana or other rating organization shall adhere to the rates and filings made on its behalf by such organization, except that:
(1) In case of fire, title, marine, and inland marine insurance to which this Part applies, any insurer may make written application to the commission for permission to file a deviation from the class rates, schedules, rating plans, or rules respecting any kind of insurance, or class of risk within a kind of insurance or combination thereof. Such application shall specify the basis for the modification, and copy thereof shall also be sent simultaneously to such rating organization concerned.
(2) In the case of casualty insurance to which this Part applies, any insurer may make written application to the commission for permission to file a uniform percentage decrease or increase to be applied to the premiums produced by the rating system prescribed or permitted by the commission for a kind of insurance, or for a class of insurance which is found by the commission to be a proper rating unit for the application of such uniform percentage decrease or increase, or for a subdivision of a kind of insurance (a) comprised of a group of manual classifications which is treated as a separate unit for rate-making purposes, or (b) for which separate expense provisions are included in the rating system prescribed or permitted by the commission. Such application shall specify the basis for the modification and shall be accompanied by the data upon which the applicant relies.
B. The office of property and casualty shall place all such applications for deviations on the agenda for a regularly scheduled meeting of the commission. The commission shall issue an order permitting the modification for such insurer to be filed if it finds it to be justified, and it shall thereupon become effective. It shall issue an order denying such application if it finds that the modification is not justified or that the resulting premiums would be excessive, inadequate, or unfairly discriminatory. The insurer so denied by the commission may then apply to the commission for a hearing thereon. Each deviation permitted to be filed shall be effective for a period of one year from the date of such permission unless terminated sooner with the approval of the commission.
C. In considering the application for permission to file such deviation in the case of fire, marine, and inland marine insurance, the commission shall give consideration to the available statistics and the applicable principles for ratemaking as provided in R.S. 22:1404. The commission shall approve such application if the rate sought to be used meets the requirements of R.S. 22:1404(3).
Acts 1958, No. 125. Amended by Acts 1960, No. 296, §1; Acts 1966, No. 136, §1; Acts 2003, No. 456, §1; Acts 2006, No. 828, §1.
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