2006 Code of Virginia § 38.2-1912 - Delayed effect of rates; certification of reinsurance with affiliated company

38.2-1912. Delayed effect of rates; certification of reinsurance withaffiliated company.

A. If the Commission finds in any class, line, or subdivision of insurance,or in any rating class or rating territory or for insurance as defined in 38.2-119 that (i) competition is not an effective regulator of the ratescharged, (ii) Virginia loss experience and other factors specificallyapplicable to the Commonwealth have not been properly used to determine therate, (iii) a substantial number of insurers are competing irresponsiblythrough the rates charged, or (iv) there are widespread violations of thischapter, it shall promulgate a rule requiring that any subsequent changes inthe rates or supplementary rate information for that class, line,subdivision, rating class or rating territory shall be filed with theCommission at least sixty days before they become effective. The Commissionmay extend the waiting period for thirty additional days by written notice tothe filer before the first sixty-day period expires. Upon filing any rate towhich this section is applicable, the insurer shall give notice to theDivision of Consumer Counsel of the Office of the Attorney General that suchrate has been filed with the Commission and such insurer shall so certify tothe Commission in its rate filing.

B. By this rule, the Commission may require the filing of supporting data forany classes, lines or subdivisions of insurance, or classes of risks orcombinations thereof it deems necessary for the proper functioning of therate monitoring and regulating process.

C. A rule promulgated under this section shall expire no later thantwenty-seven months after issue. The Commission may renew the rule after ahearing and appropriate findings under this section.

D. If a filing is not accompanied by the information the Commission hasrequired under subsection B of this section, the Commission shall withinthirty days of the initial filing inform the insurer that the filing is notcomplete, and the filing shall be deemed to be made when the information isfurnished.

E. If an insurer files for a rate reduction pursuant to a rule promulgatedunder this section, the Commission may order the provisional use of therequested rate reduction for such period as the Commission may require toevaluate the insurer's rate filing and supplementary rate information. Theimplementation of such a provisional rate reduction shall not relieve aninsurer of its obligation to submit such information as deemed necessary bythe Commission for its consideration of the rate filing, nor shall itinterfere with the Commission's authority to suspend use of the provisionalrate, reimpose the previous rate, consider and approve a revised raterequest, or otherwise exercise its authority under 38.2-1910.

F. Each insurer shall so certify in a rate filing if coverage to which therate filing applies is reinsured by another company (i) under commonmanagement, (ii) under common controlling ownership, or (iii) under othercommon effective legal control as defined in 38.2-1322.

(1973, c. 504, 38.1-279.40; 1986, c. 562; 1987, c. 697; 1990, cc. 487, 597;1993, c. 985.)