2006 Nebraska Revised Statutes - § 44-4227 — Premium and standard risk rates; how determined.

Section 44-4227
Premium and standard risk rates; how determined.

(1) Rates and rate schedules may be adjusted for appropriate risk factors such as age, sex, and area variation in claim costs in accordance with established actuarial and underwriting practices. Special rates shall be provided for children under eighteen years of age.

(2) The pool, with the assistance of an independent actuary, shall determine the standard risk rate by calculating the average individual rate charged by the five insurers writing the largest amount of individual health insurance coverage in the state actuarially adjusted to be comparable with the pool coverage, except that such five insurers shall not include any insurer which has not been writing individual health insurance coverage in this state in at least the three preceding calendar years. The selection of the independent actuary shall be subject to the approval of the director. In the event five insurers do not offer comparable coverage, the standard risk rate shall be established using reasonable actuarial techniques and shall reflect anticipated risk experience and expenses for such coverage. The annual premium rate established for pool coverage shall be one hundred thirty-five percent of rates established as applicable for individual standard risks, except that the annual premium rate established for pool coverage for children under eighteen years of age shall be sixty-seven and five-tenths percent of rates established as applicable for individual standard risks. The board shall not adjust or increase pool rates more than one time during any calendar year. All rates and rate schedules shall be submitted to the director for approval. The director shall hold a public hearing pursuant to the Administrative Procedure Act prior to approving an adjustment to or increase in pool rates.

Source:

Laws 1985, LB 391, § 27

Laws 1989, LB 279, § 9

Laws 1990, LB 1136, § 107

Laws 1991, LB 419, § 4

Laws 1992, LB 1006, § 40

Laws 1998, LB 1063, § 3

Laws 2000, LB 1253, § 29

Cross References:

Administrative Procedure Act,see section 84-920.

~Reissue Revised Statutes of Nebraska