38.2-3730 - Experience reports and adjustment of prima facie rates. - Virginia Statutes

§ 38.2-3730. Experience reports and adjustment of prima facie rates.

A. Each insurer doing insurance business in this Commonwealth shall annuallyfile with the Commission and the National Association of InsuranceCommissioners a report of credit life and credit accident and sicknesswritten on a calendar year basis. Such report shall utilize the CreditInsurance Supplement-Annual Statement Blank as then approved by the NationalAssociation of Insurance Commissioners. Such filing shall be made inaccordance with and no later than the due date in the Instructions in theAnnual Statement.

B. The Commission shall, on a triennial basis, publish notice and conduct ahearing to determine the actual loss ratio for each form of insurance andadjust the prima facie rates, as provided in §§ 38.2-3726 and 38.2-3727, byapplying the ratio of the actual loss ratio to the loss ratio standard setforth in § 38.2-3725 to the prima facie rates. The Commission shall, aftersuch hearing, publish the adjusted actual statewide prima facie rates to beused by insurers during the next triennium. As set forth in this section,the following formula shall be used to adjust the prima facie rates:

Actual Loss Ratio
Loss Ratio Standard 

Where PFR is the prima facie rate as provided in §§ 38.2-3726 and 38.2-3727,the Actual Loss Ratio is the ratio of the incurred claims to the earnedpremiums at prima facie rates for all companies for the preceding three yearsas reported in the Annual Statement Supplements and the Loss Ratio Standardis the loss ratio provided in § 38.2-3725.

C. In the event that three years of experience is not available using primafacie rates published by the Commission, the Commission may adjust primafacie rates using the number of years of experience available at prima facierates previously published by the Commission.

(1992, c. 586.)