California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 5 - Determination of Rates for Rollback Period › Section 2645.3 - General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Except as
				  otherwise specified in this article, rates for the rollback period shall be
				  evaluated in the manner specified in article 4 of this subchapter. To the
				  extent that the rates charged during the rollback period exceeded the minimum
				  permitted earned premium, the excess shall be refunded to consumers with
				  interest as set forth in section
				  2544.9.
(b) Rollback calculations shall be made on an
				  aggregate basis, rather than on a per-exposure basis. Interjurisdictional
				  allocations shall be made as specified in section
				  2643.6, except that calculations
				  specified in subdivisions (a)(4) and (a)(5) of section
				  2643.6 shall be made on the basis
				  of earned premium. Leverage factors shall be computed in accordance with
				  section 2644.17.
(c) While premiums paid for surety, credit,
				  and financial guaranty insurance have been exempted by the Legislature from the
				  requirement that they be rolled back, the amount of the rollback due on other
				  property-casualty insurance, to the extent that the rollback is constrained by
				  constitutional limits, is properly determined by evaluating the profitability
				  of all the insurer's California property-casualty insurance not excluded by
				  section
				  1851 of the
				  Insurance Code. Accordingly, the minimum earned premium shall be calculated on
				  all property-casualty insurance not excluded by section
				  1851 of the
				  Insurance Code, including surety, credit, and financial guaranty.
(d) The option to disaggregate data within
				  lines as provided by section
				  2642.7 shall not apply to rollback
				  year calculations.
(e) Minimum
				  permitted earned premium shall be determined on an all-lines combined,
				  groupwide basis.
1. New
					 section filed 8-13-91 as an emergency; operative 8-13-91 (Register 92, No. 3).
					 A Certificate of Compliance must be transmitted to OAL 12-11-91 or emergency
					 language will be repealed by operation of law on the following
					 day.
2. Repealed by operation of Government Code section
					 11346.1(g)
					 (Register 92, No. 15).
3. New section refiled 2-14-92 as an
					 emergency; operative 2-14-92 (Register 92, No. 15). A Certificate of Compliance
					 must be transmittted to OAL 6-15-92 or emergency language will be repealed by
					 operation of law on the following day.
4. Repealed by operation of
					 Government Code section
					 11346.1(g)
					 and new section filed 3-15-95; operative 3-15-95. Submitted to OAL for printing
					 only pursuant to Government Code section
					 11343(a)(1)
					 (Register 95, No. 11).
Note: Authority cited: Sections
						1861.01 and
						1861.05,
						Insurance Code; 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Sections
						1861.01,
						1861.05,
						1861.135,
						1861.137
						and
						12120 of
						the Insurance Code, Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.