Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-38 - GEORGIA WORKERS' COMPENSATION ASSIGNED RISK INSURANCE PLAN › Rule 120-2-38-.08 - Rates, Rating Plans, Rating Systems, Underwriting Rules and Policy Forms for Plan

Current through Rules and Regulations filed through June 27, 2024
(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.