287.930. Definitions.

MISSOURI STATUTES AND CODES

Definitions.

287.930. As used in sections 287.930 to 287.975, the following termsmean:

(1) "Accepted actuarial standards", the standards adopted by theCasualty Actuarial Society in its Statement of Principles Regarding Propertyand Casualty Insurance Ratemaking, and the Standards of Practice adopted bythe Actuarial Standards Board;

(2) "Advisory organization", any entity which either has two or moremember insurers or is controlled either directly or indirectly by two or moreinsurers and which assists insurers in ratemaking related activities. Two ormore insurers which have a common ownership or operate in this state undercommon management or control constitute a single insurer for the purpose ofthis definition. "Advisory organization" does not include a jointunderwriting association, any actuarial or legal consultant, any employee ofan insurer or insurers under common control or management or their employeesor manager;

(3) "Classification system" or "classification", the plan, system orarrangement for recognizing differences in exposure to hazards amongindustries, occupations or operations of insurance policyholders;

(4) "Competitive market", a market which has not been found to benoncompetitive pursuant to section 287.942;

(5) "Director", the director of the department of insurance, financialinstitutions and professional registration;

(6) "Expenses", that portion of any rate attributable to acquisition andfield supervision; collection expenses and general expenses; and taxes,licenses and fees;

(7) "Experience rating", a rating procedure using past insuranceexperience of the individual policyholder to forecast future losses bymeasuring the policyholder's loss experience against the loss experience ofpolicyholders in the same classification to produce a prospective premiumcredit, debit or unity modification;

(8) "Loss trending", any procedure for projecting developed losses tothe average date of loss for the period during which the policies are to beeffective;

(9) "Market", the interaction between buyers and sellers of workers'compensation insurance within this state pursuant to the provisions ofsections 287.930 to 287.975;

(10) "Noncompetitive market", a market for which there is a ruling ineffect pursuant to section 287.942 that a reasonable degree of competitiondoes not exist;

(11) "Prospective loss costs", that portion of a rate that does notinclude provisions for expenses, other than loss adjustment expenses, orprofit. "Prospective loss costs" are developed losses projected through losstrending to a future point in time, including any assessments that areloss-based, and ascertained by accepted actuarial standards;

(12) "Pure premium rate", that portion of the rate which represents theloss cost per unit of exposure including loss adjustments expense;

(13) "Rate", the cost of insurance per exposure base unit, prior to anyapplication of individual risk variations based on loss or expenseconsiderations, and does not include minimum premiums;

(14) "Residual market", the plan, either voluntary or mandated by law,involving participation by insurers in the equitable apportionment among themof insurance which may be afforded applicants who are unable to obtaininsurance through ordinary methods;

(15) "Statistical plan", the plan, system or arrangement used incollecting data;

(16) "Supplementary rate information", any manual or plan of rates,classifications system, rating schedule, minimum premium, policy fee, ratingrule, rating plan, and any other similar information needed to determine theapplicable premium for an insured;

(17) "Supporting information", the experience and judgment of the filerand the experience or data of other insurers or organizations relied on by thefiler, the interpretation of any statistical data relied on by the filer,descriptions of methods used in making the rates and any other similarinformation required to be filed by the director.