287.972. Advisory organization's permitted activities--director may allow pure premium rate data to be distributed.

MISSOURI STATUTES AND CODES

287.972. Advisory organization's permitted activities--director may allow pure premium rate data to be distributed.

Advisory organization's permitted activities--director may allowpure premium rate data to be distributed.

287.972. 1. The advisory organization, in addition to other activitiesnot prohibited, may:

(1) Develop statistical plans, including class definitions;

(2) Collect statistical data from members, subscribers or any othersource;

(3) Prepare and distribute pure premium rate data, adjusted for lossdevelopment and loss trending, in accordance with its statistical plans asspecified in subsection 2 of this section. Such data and adjustments shouldbe in sufficient detail so as to permit insurers to modify such pure premiumsbased on their own rating methods or interpretations of underlying data;

(4) Prepare and distribute manuals of rating rules and rating schedulesthat do not contain any rules or schedules including final rates of permittingcalculation of final rates without information outside the manuals;

(5) Distribute information that is filed with the director and open topublic inspection;

(6) Conduct research and collect statistics in order to discover,identify and classify information relating to causes or prevention of losses;

(7) Prepare and file policy forms and endorsements and consult withmembers, subscribers and others relative to their use and application;

(8) Collect, compile and distribute past and current prices ofindividual insurers if such information is made available to the generalpublic;

(9) Conduct research and collect information to determine the impact ofbenefit level changes on pure premium rates;

(10) Prepare and distribute rules and rating values for the uniformexperience rating plan. Calculate and disseminate individual risk premiummodifications;

(11) Assist an individual insurer to develop rates, supplementary rateinformation or supporting information when so authorized by the individualinsurer.

2. The director of the department of insurance, financial institutionsand professional registration will allow pure premium rate data, adjusted forloss development and loss trending, to be distributed, upon filing with thedirector with a final distribution in a format which allows a comparison ofsuch data, adjusted for loss development without any trend factor, with atrend factor developed by the advisory organization, and with a trend factordeveloped by the director, for each of the various job classifications. Suchdata may be used, at their option, by workers' compensation insurers,self-funded employers, or self-insured groups of employers, to determine theirown final rates or charges for workers' compensation insurance coverage. Theauthority to establish such a reporting format shall not be interpreted asallowing the director of the department of insurance, financial institutionsand professional registration to set final rates where a competitive marketexists under the provisions of sections 287.930 to 287.975.