Rule 120-2-38-.08 - Rates, Rating Plans, Rating Systems, Underwriting Rules and Policy Forms for Plan(1) The rates, rating plans, rating systems, underwriting rules and policy forms used in connection with the Plan shall be the rates, rating plans, rating systems, underwriting rules and policy forms filed by the Administrator and approved by the Commissioner.(2) The Administrator shall maintain necessary ratemaking data in order to permit the actuarial determination of rates and rating plans appropriate for the business insured through the Plan, shall monitor both rate adequacy and Plan results, and shall notify the Commissioner if excessive losses are indicated to enable the Commissioner to take corrective action.(3) The intended purpose of this section is to provide rates in the Plan that are adequate, not excessive and not unfairly discriminatory and which will allow the Plan to operate as a self-funded mechanism.(4) For Plan policies with effective dates on or after January 1, 1996, the Commissioner shall approve and implement a plan which establishes rates adequate to eliminate any Plan operating deficit by January 1, 1999. In this Plan, the Commissioner shall also consider expense saving items which may improve the operating results of the Plan.(5) Any Plan operating deficit generated from Plan policy years prior to January 1, 1996 shall not be passed along to current or future Plan policy holder. Any such deficit shall be fulfilled pursuant to the plan of operation in effect at that time.(6) The Administrator shall include necessary ratemaking data in each rate filing with the Commissioner to sufficiently support such filing. This shall include information concerning loss development and trend, expenses, and investment income. The Administrator shall also, upon request, provide any other information needed to assist the Commissioner in his review of each rate filing.(7) The following system of credits shall be granted by the Administrator against assessment or participation of Insurers in the Plan for the voluntary writing of a Risk whose immediate prior Insusrer for a period of at least one year was the Plan. The system of credits shall apply for a period of time specified in the Administrator's filing and approved by the Commissioner: (a) For policies with an annual premium of $7,500 or less, a credit of four times the amount of such annual premium;(b) For policies with an annual premium of at least $7,501, but not exceeding $15,000, a credit of three times the amount of such annual premium;(c) For policies with an annual premium of at least $15,001, but not exceeding $25,000, a credit of two times the amount of such annual premium;(d) For policies with an annual premium of at least $25,001, but not exceeding $200,000, a credit of one and one-half times the amount of such annual premium; and(e) For policies with an annual premium of $200,001 or greater, a credit of the amount of such annual premium.(8) The Commissioner shall annually submit a report to the General Assembly. To assist the Commissioner in this responsibility, the Administrator shall provide, by September 1 of each year, estimated Plan operating surpluses or deficits, Plan premium and size distributions, results of the three tier rating program, effect of the Servicing Carrier remedial program, results of Servicing Carrier incentives and disincentives, and any other information that the Commissioner deems necessary to evaluate the Plan.Ga. Comp. R. & Regs. R. 120-2-38-.08
O.C.G.A. Secs. 33-2-9, 33-9-8, 33-9-20, 33-9-21, 34-9-133.
Original Rule entitled "Rates, Rating Plans, Rating Systems, Underwriting Rules and Policy forms for Plan" was filed on December 1, 1983; effective January 1, 1984, as specified by the Agency.Repealed: New Rule of same title adopted. F. Aug. 10, 1993; eff. Aug. 30, 1993.Repealed: New Rule entitled "Rates, Rating Plans, Rating Systems, Underwriting Rules and Policy Forms for Plan" adopted. F. Sept. 12, 1996; eff. Oct. 2, 1996.