2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 515F - CASUALTY INSURANCE
515F.2 - DEFINITIONS.

        515F.2  DEFINITIONS.
         1.  "Advisory organization" means an entity, including its
      affiliates or subsidiaries, which either has two or more member
      insurers or is controlled either directly or indirectly by two or
      more insurers, and which assists insurers in ratemaking-related
      activities such as enumerated in sections 515F.10 and 515F.11.  Two
      or more insurers having a common ownership or operating in this state
      under common management or control constitute a single insurer for
      purposes of this definition.
         2.  "Commercial risk" means any kind of risk which is not a
      personal risk.
         3.  "Developed losses" means losses (including loss adjustment
      expenses) adjusted, using standard actuarial techniques, to eliminate
      the effect of differences between current payment or reserve
      estimates and those needed to provide actual ultimate loss (including
      loss adjustment expense) payments.
         4.  "Expenses" means that portion of a rate attributable to
      acquisition, field supervision, collection expenses, general
      expenses, taxes, licenses, and fees.
         5.  "Joint underwriting" means a voluntary arrangement
      established on an ad hoc basis to provide insurance coverage for a
      commercial risk pursuant to which two or more insurers jointly
      contract with the insured at a price and under policy terms agreed
      upon between the insurers.
         6.  "Loss trending" means a procedure for projecting developed
      losses to the average date of loss for the period during which the
      policies are to be effective.
         7.  "Personal risk" means insurance covering homeowners,
      tenants, private passenger nonfleet automobiles, and mobile homes,
      and other property and casualty insurance for personal, family, or
      household needs.
         8.  "Pool" means a voluntary arrangement, established on an
      ongoing basis, pursuant to which two or more insurers participate in
      the sharing of risks on a predetermined basis.  The pool may operate
      through an association, syndicate, or other pooling agreement.
         9.  "Prospective loss costs" means that portion of a rate that
      does not include provisions for expenses (other than loss adjustment
      expenses) or profit, and is based on historical aggregate losses and
      loss adjustment expenses adjusted through development to their
      ultimate value and projected through trending to a future point in
      time.
         10.  "Rate" means the cost of insurance per exposure unit
      whether expressed as a single number or as a prospective loss cost
      with an adjustment to account for the treatment of expenses, profit,
      and individual insurer variation in loss experience, prior to any
      application of individual risk variations based on loss or expense
      considerations, and does not include minimum premium.
         11.  "Residual market mechanism" means an arrangement, either
      voluntary or mandated by law, involving participation by insurers in
      the equitable apportionment among them of insurance which may be
      offered to applicants who are unable to obtain insurance through
      ordinary methods.
         12.  "Supplementary rating information" includes a manual or
      plan of rates, classification, rating schedule, minimum premium,
      policy fee, rating rule, underwriting rule, statistical plan, and any
      other similar information needed to determine the applicable rate in
      effect or to be in effect.
         13.  "Supporting information" means the experience and
      judgment of the filer and the experience or data of other insurers or
      advisory organizations relied upon by the filer, the interpretation
      of any other data relied upon by the filer, descriptions of methods
      used in making the rates, and any other information required by the
      commissioner to be filed.  

         90 Acts, ch 1234, §46
         Referred to in § 515F.23