reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.19 - Investment Income Factors

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Fixed investment income factor" means
				  the projected yield, as defined in section
				  2644.20,
(1) multiplied by the ratio of the investment
				  federal income tax factor and the underwriting federal income tax factor, as
				  defined in section
				  2644.18,
(2) multiplied by the loss reserves ratio, as
				  defined in section
				  2644.21.
Stated as a formula:
Fixed invest inc factor = yield
							 x
FIT inv inc
x loss reserves
							 ratio
FIT und
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.20 - Projected Yield

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  "Projected yield" means the weighted average yield computed using the insurer's
				  actual portfolio and yields currently available on securities in US capital
				  markets. The weights shall be determined using the insurer's most recent
				  consolidated statutory annual statement, and shall be computed by dividing the
				  insurer's assets in each separate asset class shown on page 2, lines 1 through
				  9 of the insurer's consolidated statutory annual statement, by the total of
				  lines 1 through 9. The yields for each asset class shall be based on an average
				  of the most recent available 3 complete months, as of the date of
				  filing.
(b) The bond asset class
				  shall be subdivided into the issuer categories of US government bonds, other
				  taxable bonds and tax exempt bonds and into the maturity categories of short,
				  intermediate and long-term shown. For the purposes of this section, "US
				  government" means the sum of rows 1.7, U.S. governments, and 2.7, all other
				  governments, of schedule D, part 1A, section
				  1 of the insurer's consolidated
				  statutory annual statement, "other taxable" means the sum of rows 6.7, public
				  utilities, 7.7, industrial and miscellaneous, 8.7, credit tenant loans, 9.7,
				  parent subsidiaries and affiliates and half of row 5.7, special revenue and
				  special assessments and "tax-exempt" means the sum of rows 3.7, states,
				  territories and possessions, 4.7, political subdivision of states, territories
				  and possessions, and half of row 5.7. For the purposes of this section,
				  "short-term" means one year or less, "intermediate-term" means more than one
				  year through 10 years, and "long-term" means more than 10 years.
(c) "Yields currently available on securities
				  in US capital markets" means,
(1) US
				  government bonds
(A) Short: yield on the
				  nominal 3-month constant maturity US Treasury bill as provided in the Federal
				  Reserve H.15 statistical release
(B) Intermediate: yield on the nominal
				  10-year constant maturity US Treasury bond as provided in the Federal Reserve
				  H.15 statistical release
(C) Long:
				  yield on the nominal 20-year constant maturity US Treasury bond as provided in
				  the Federal Reserve H.15 statistical release
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.21 - Reserves Ratio

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  "Unearned premium reserves ratio" means
(1)
				  the average of the last two years ending unearned premium reserves
(2) divided by the earned premium for the
				  most recent year for which data are available.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.22 - Surplus Ratio

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
"Surplus ratio" means the reciprocal of the leverage
					 factor. Stated as a formula:
1
surplus ratio
=
___________________________
leverage factor
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 and
						1861.05,
						Insurance Code; Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.23 - Credibility Adjustment

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  To the extent that the maximum and minimum permitted earned premiums are based
				  upon data that lack credibility, a credibility adjustment shall be
				  made.
(b) For each form for
				  homeowners multiple peril and for each coverage for private passenger auto
				  liability and physical damage the standard for full credibility shall be 3000
				  claims. Partial credibility shall be the square root of the ratio of the actual
				  number of incurred claims in the experience period divided by the full
				  credibility standard. For lines of business other than homeowners multiple
				  peril and private passenger automobile liability and physical damage, the
				  standard for full and partial credibility shall be determined using the most
				  actuarially sound method.
(c) When
				  the loss and defense and cost containment expense data is less than fully
				  credible, in the maximum and minimum premium formulas in sections
				  2644.2 and
				  2644.3, the following shall be
				  substituted:
(1) The sum of
(A) the credibility weight, as defined in
				  section 2644.23(b),
(B) multiplied by the sum of
(i) projected loss, as defined in section
				  2644.4,
(ii) plus projected defense and cost
				  containment expense, as defined in section
				  2644.8,
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.24 - Trended Current Rate Level Earned Premium

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
"Trended current rate level earned premium" means the
					 earned premium per exposure for the recorded period adjusted to the current
					 rate level based on subsequent rate changes and further adjusted for premium
					 trend. The trend adjustment shall be calculated by applying the premium trend
					 factor separately to data from each year in the recorded
					 period.
1. New
					 section filed 1-3-2007; operative 4-3-2007. Submitted to OAL for printing only
					 pursuant to Government Code section
					 11340.9(g)
					 (Register 2007, No. 1).
Note: Authority cited: Sections
						1861.01 and
						1861.05,
						Insurance Code; and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Sections
						1861.01 and
						1861.05,
						Insurance Code; and Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.25 - Reinsurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For all lines
				  and sublines except for those listed in the next subparagraph, ratemaking shall
				  be on a direct basis, with no consideration for the cost or benefits of
				  reinsurance.
(b) For earthquake and
				  for medical malpractice facultative reinsurance with attachment points above
				  one million dollars, the maximum permitted earned premium is calculated as
				  follows:
The sum of
(1) the
				  quotient of
(A) the difference of
(i) the product of
a. the projected losses, as defined in
				  section 2644.4, plus the projected defense
				  and cost containment expense, as defined in section
				  2644.8, minus the projected
				  reinsurance recoverables, as defined in section
				  2644.26,
b. multiplied by 1 minus the fixed investment
				  income factor, as defined in section
				  2644.19(a),
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.26 - Reinsurance Recoverables

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
"Reinsurance recoverables" means all amounts recoverable
					 from reinsurers for paid and unpaid losses and loss adjustment expenses per
					 exposure, including estimated amounts receivable for unsettled claims and
					 claims incurred but not reported as provided under reinsurance
					 agreements.
1. New
					 section filed 1-3-2007; operative 4-3-2007. Submitted to OAL for printing only
					 pursuant to Government Code section
					 11340.9(g)
					 (Register 2007, No. 1).
Note: Authority cited: Sections
						1861.01 and
						1861.05,
						Insurance Code; and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Sections
						1861.01 and
						1861.05,
						Insurance Code; and Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.27 - Variance Request

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A
				  request that the maximum permitted earned premium or minimum permitted earned
				  premium should be adjusted is referred to as a "variance request."
(b) Requests for variances shall be filed
				  with the Rate Filing Bureau on pages 11a and 11b of the Prior Approval Rate
				  Application. All such variance requests shall specifically:
(i) identify each and every variance
				  request;
(ii) identify the extent
				  or amount of the variance requested and the applicable component of the
				  ratemaking formula;
(iii) set forth
				  the expected result or impact on the maximum and minimum permitted earned
				  premium that the granting of the variance will have as compared to the expected
				  result if the variance is denied; and
(iv) identify the facts and their source
				  justifying the variance request and provide the documentation supporting the
				  amount of the change to the component of the ratemaking
				  formula.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4 - Determination of Reasonable Rates › Section 2644.28 - Prospective Application of Revisions to Regulations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Any amendment to this subchapter shall only apply
					 prospectively. A rate change application shall be subject to the rules of this
					 subchapter that are in effect on the date the application is received by the
					 Commissioner pursuant to section
					 1861.05(c)
					 of the Insurance Code.
1. New
					 section filed 5-16-2008; operative 5-16-2008. Submitted to OAL for printing
					 only pursuant to Government Code section
					 11340.9(g)
					 (Register 2008, No. 20).
Note: Authority cited: Sections
						1861.01 and
						1861.05,
						Insurance Code; and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Sections
						1861.01 and
						1861.05,
						Insurance Code; and Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 4.5 - Refiling of Approved Rates › Section 2644.50 - Refiling of Approved Rates

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
As a means to determine whether a rate previously approved
					 remains in compliance with the statutory standard set forth in California
					 Insurance Code Section
					 1861.05(a),
					 for an insurer operating with a rate approved three years ago or longer in the
					 homeowners multiple peril and private passenger auto liability and physical
					 damage lines, the Commissioner may require an insurer to file a rate
					 application.
Nothing in this section shall be construed to specify how
					 often an insurer may make a rate application filing.
1. New
					 article 4.5 (section
					 2644.50) and new section filed
					 1-3-2007; operative 4-3-2007. Submitted to OAL for printing only pursuant to
					 Government Code section
					 11340.9(g)
					 (Register 2007, No. 1).
Note: Authority cited: Sections
						1857.2,
						1857.3,
						1861.01,
						1861.05 and
						12921,
						Insurance Code; and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Sections
						1861.01 and
						1861.05,
						Insurance Code; and Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
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 2645.1 - Scope

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
This article applies to all rates charged for insurance
					 issued or renewed on or after November 8, 1988, and not after November 7,
					 1989.
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 and
						1861.05,
						Insurance Code; Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
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 2645.2 - Findings

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Commissioner finds:
(a) Proposition 103 requires that all rates
				  charged during the rollback period be reduced by 20% from their November 8,
				  1987, levels. Consumers are entitled to receive, and insurers are obligated to
				  give, this reduction, except to the extent that it violates the insurers'
				  constitutional rights.
(b) Insurers
				  are entitled to rates during the rollback period that are not confiscatory.
				  Rates are confiscatory if and only if all the rates charged by an entire group
				  of insurance companies sharing a single ownership or control are, taken as a
				  whole, confiscatory.
(c) To the
				  extent that the rates specified by Proposition 103 for the rollback period are
				  confiscatory, insurers are entitled to a rate above the level prescribed by the
				  initiative, but no higher than necessary for the rates not to be
				  confiscatory.
(d) Historical data
				  shall be used in lieu of forecasts for the rollback period because actual
				  historical data exist for many of the figures that are forecast in
				  prior-approval ratemaking, making it possible to avoid the errors inherent in
				  forecasting and resulting in greater accuracy.
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 and
						1861.05,
						Insurance Code; Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
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 2645.4 - Losses and Allocated Loss Adjustment Expenses

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In lieu of projected losses and loss adjustment expenses,
					 actual loss and loss adjustment expense data for calendar year 1989 shall be
					 used.
(a) Catastrophe adjustment. No
				  adjustment of losses for catastrophes shall be made.
(b) Loss development and trending. Actual
				  incurred losses shall be used, subject to validation by the Commissioner to
				  ensure that there has not been inappropriate reserves-strengthening. Because
				  incurred losses for calendar year 1989 are now known, no loss development is
				  necessary or appropriate and loss and loss adjustment expense trend would have
				  so insubstantial an effect on rates that no adjustment shall be made.
(c) Reserves-strengthening. The Commissioner
				  will not adjust an insurer's 1989 reserves when any of the following conditions
				  are found:
(1) Reserves: Premium, One-Year
				  Test. When the year-end 1989 loss reserves to 1989 earned premiums is less than
				  or equal to the year-end 1989 loss reserves to 1988 earned premiums.
(2) Reserves: Premium Four-Year Test. When
				  the 1989 reserves- to-premium ratio is less than or equal to the average of the
				  reserves-to-premium ratios for 1985 through 1988.
(3) Incurred Versus Paid Test. When the ratio
				  of 1989 incurred losses to 1988 incurred losses was no greater than the ratio
				  of the payments on 1989-incurred losses was to payments on 1988-incurred
				  losses.
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 2645.5 - Fixed Expenses

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Executive compensation in excess of the insurer's maximum permissible executive
				  compensation shall be deducted from fixed expenses. For purposes of this
				  computation, the following shall apply:
(1)
				  "Executive" means the insurer's five highest-paid policymaking positions in
				  each insurance group.
(2)
				  "Compensation" means the total cash paid, including salary and bonus.
(3) "Maximum permissible executive
				  compensation" means:
(A) For the highest paid
				  executive in the group:
max
comp
= 1077(101.4600 +
						0.4060 log
X
)
(B) For the second-highest paid executive in
				  the group:
max
comp
= 1077(101.4140 +
						0.3490 log
X
)
(C) For the third-highest paid executive in
				  the group:
max
comp
= 1077(101.2310 +
						0.3820 log
X
)
(D) For the fourth-highest paid executive in
				  the group:
max
comp
= 1077(101.2470 +
						0.3580 log
X
)
(E) For the fifth-highest paid executive in
				  the group:
max
comp
= 1077(101.2460 +
						0.3420 log
X
)
where X is the greater of (i) the insurer's total 1989
					 countrywide direct earned premium for lines of business subject to Proposition
					 103 divided by 1,000,000 or (ii) 70.
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 2645.6 - Profit Factor

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				  after-tax rate of return for property and casualty insurance, corresponding to
				  the lower boundary of the range of reasonable returns, is 10.0
				  percent.
(b) For the rollback
				  period, leverage factor for each line shall be determined on a groupwide basis
				  from the following table:
Line
Leverage
							 Ratio
Fire
3.50:1
Allied Lines
3.50:1
Farmowner Multiple
							 Peril
2.50:1
Homeowner Multiple
							 Peril
2.50:1
Commercial Multiple
							 Peril
1.75:1
Inland Marine
3.50:1
Medical Malpractice
1.00:1
Earthquake
2.00:1
Other Liability
1.00:1
Private Passenger Auto
							 Liability
2.00:1
Commercial Auto
							 Liability
2.00:1
Private Passenger Auto Physical
							 Damage
5.50:1
Commercial Auto Physical
							 Damage
5.50:1
Aircraft
1.00:1
Fidelity
2.00:1
Glass
5.50:1
Burglary & Theft
4.00:1
Boiler & Machinery
2.50:1
(c)
				  To the extent that an insurer has operated during calendar-year 1989 on less
				  surplus than the leverage factor would prescribe, the insurer's actual leverage
				  ratio shall be used. The insurer's actual leverage ratio shall be computed by
				  allocating the insurer's surplus to lines in proportion to the insurer's
				  average 1989 reserves as specified in section
				  2644.21.
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. Amendment of subsection (a), new subsection (b) and
					 renumbering filed 10-8-91 as an emergency; operative 10-8-91 (Register 92, No.
					 13). A Certificate of Compliance must be transmitted to OAL 2-5-92 or emergency
					 language will be repealed by operation of law on the following
					 day.
3. New section filed 2-20-92 as an emergency; operative 2-20-92
					 (Register 92, No. 19). A Certificate of Compliance must be transmitted to OAL
					 6-19-92 or emergency language will be repealed by operation of law on the
					 following day.
4. Certificate of Compliance as to 2-20-92 order
					 transmitted to OAL 6-19-92 and filed 7-28-92 (Register 92, No.
					 31).
Note: Authority cited: Sections
						1861.01 and
						1861.05,
						Insurance Code. Reference: Sections
						1861.01 and
						1861.05,
						Insurance Code; Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
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 2645.7 - Credibility

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No adjustment shall be made for credibility in rollback
					 calculations.
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 and
						1861.05,
						Insurance Code; Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
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 2645.8 - Investment Income

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The insurer's imbedded yield, plus the five-year average
					 (1985 through 1989) of realized capital gains, shall be used in lieu of the
					 projected yield. Imbedded yield shall be calculated as the insurer's net
					 investment income, excluding capital gains, divided by the average of the
					 insurer's year-end surplus and reserves for 1988 and 1989. The insurer's
					 five-year average realized capital gains shall be calculated as the mean of the
					 quotients, for each year 1985 through 1989, of the annual realized capital
					 gains and the average of the insurer's year-end surplus and reserves for that
					 year and the previous year.
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 and
						1861.05,
						Insurance Code; Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
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 2645.9 - Amount of Refund

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  "Statutory percentage" means the larger of
(1)
(A)
(i)
				  total 1989 direct premium earned, excluding surety, credit, and financial
				  guaranty insurance,
(ii) minus
				  total 1989 direct premium earned, excluding surety, credit, and financial
				  guaranty insurance, adjusted to be on the rate level of November 8, 1987,
				  multiplied by 0.8,
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.2 - Certification of Questions to the Commissioner

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In any hearing before an administrative
				  law judge, the administrative law judge may, on the motion of any party or on
				  the administrative law judge's own motion, certify a question to the
				  Commissioner for determination during the proceedings before the administrative
				  law judge.
(b) Certification shall
				  be limited to matters that either (1) apply to numerous pending hearings; (2)
				  are substantially in doubt and are so fundamental to the instant proceeding
				  that absent certification there is a substantial risk that hearing time would
				  be wasted; or (3) in the opinion of the administrative law judge, require
				  immediate determination by the Commissioner in the interests of
				  justice.
(c) The Commissioner may
				  decline to answer the certified question without specifying any grounds. Denial
				  of certification without reaching the merits is without prejudice to the
				  party's right to raise the matter before the administrative law judge or the
				  Commissioner.
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).
5. Repealer of subsection (d) and amendment
					 of NOTE filed 10-16-2002; operative 11-15-2002 (Register 2002, No.
					 42).
6. Change without regulatory effect amending subsection (a)
					 filed 7-14-2021 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2021, No. 29). Filing deadline specified in Government
					 Code section
					 11349.3(a)
					 extended 60 calendar days pursuant to Executive Order
					 N-40-20.
Note: Authority cited: Sections
						1861.01,
						1861.05 and
						1861.055,
						Insurance Code; 20th Century v. Garamendi, 8 Cal.4th 216, 281 (1994).
						Reference: Sections
						1861.01 and
						1861.05,
						Insurance Code; Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d 805;
						and Fireman's Fund Insurance Companies v. Charles Quackenbush (1997) 52
						Cal.App.4th 599, 607.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.3 - Generic Determinations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Generic determination" means a finding
				  the Commissioner is required or authorized by these regulations to make, which
				  finding is intended to apply to the rate applications of several or all
				  insurers.
(b) The generic
				  determination shall be adopted as a regulation pursuant to chapter 3.5
				  (sections
				  11340
				  through
				  11356 of
				  the Government Code), upon final decision of the Commissioner, and shall be
				  binding in hearings on individual insurers' rates.
(c) In a hearing convened for the purpose of
				  making a generic determination, any person may propose that the pertinent data
				  be disaggregated by geographic region, policy limits and deductibles, or amount
				  of premium the insurer writes in the line and that separate determinations be
				  made for each category. This subsection does not authorize insurer-by-insurer
				  generic determinations.
(d) The
				  Commissioner may, from time to time, review generic determinations to assess
				  whether they are still sound. Such review may be on the Commissioner's own
				  motion or on the petition of any person. Any such petition shall specify the
				  changes in circumstances giving rise to the need for a revised
				  determination.
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).
5. Amendment of subsection (b) and repealer
					 of subsections (e)-(e)(2) filed 1-3-2007; operative 4-3-2007. Submitted to OAL
					 for printing only pursuant to Government Code section
					 11340.9(g)
					 (Register 2007, No. 1).
Note: Authority cited: Sections
						1861.01 and
						1861.05,
						Insurance Code; and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Sections
						1861.01 and
						1861.05,
						Insurance Code; and Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.4 - Hearings on Individual Insurers' Rates

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) This section applies to any request for a
				  hearing on an individual insurer's rates, and applies to both requests made
				  prior to a rate becoming effective and to requests concerning a rate in effect.
(1) A request for a hearing on a rate
				  application shall be either delivered or mailed to the Department of Insurance
				  within 45 days of the public notice specified in subdivision (c) of Insurance
				  Code section
				  1861.05.
(2) A request for a hearing at any other time
				  shall be based on the allegation that, pursuant to subdivision (a) of Insurance
				  Code section
				  1861.05, a
				  rate is "in effect which is excessive, inadequate, unfairly discriminatory or
				  otherwise in violation of" chapter 9 (commencing with section
				  1851) of part 2 of division 1 of
				  the Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.5 - Burden of Proof

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The insurer has the burden of proving, by a preponderance
					 of the evidence, every fact necessary to show that its rate is not excessive,
					 inadequate, unfairly discriminatory, or otherwise in violation of chapter 9
					 (commencing with section
					 1851) of part 2 of division 1 of
					 the Insurance Code.
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 and
						1861.05,
						Insurance Code; Calfarm Insurance Company v. Deukmejian (1989) 48 Cal.3d
						805.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.6 - Commissioner's Report on Underserved Communities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Definitions
For the purpose of these regulations, the following terms
					 are construed as defined herein:
"Insurer" means those carriers admitted to transact the
					 business of insurance in California and the California Fair Access to Insurance
					 Requirements (FAIR) Plan.
"Underserved Community" means those communities which the
					 Commissioner has determined are underserved as set forth in the "Commissioner's
					 Report on Underserved Communities".
(a) Each insurer writing in any one of the
				  lines of insurance set forth in Section
				  2646.6(b)(1)(A) through
				  (D) below, with the exception of umbrella,
				  excess or reinsurance coverages, shall compile and maintain, by experience year
				  the information required by this section for that line of business, and on or
				  before April 1 of every odd-numbered year each insurer shall file a Community
				  Service Statement with the Department of Insurance's Statistical Analysis
				  Division in Los Angeles. The Community Service Statement shall contain a
				  verification of an executive officer of the insurer, under penalty of perjury
				  under the laws of the State of California, that the information contained
				  therein is true and correct.
(b)
				  Such information shall be compiled and maintained in a manner which will allow
				  the insurer to report the information to the Commissioner for each Zone
				  Identification Program ("ZIP") code in every county in California in which the
				  insurer sells insurance or maintains agents:
(1) Premium Written & Earned; Exposure
				  Written & Earned;
(A) private passenger
				  automobile liability (including policies issued through the California
				  Automobile Assigned Risk Plan);
(B)
				  homeowners multiple peril (including policies submitted to, and/or gathered by
				  the California FAIR Plan);
(C)
				  commercial multiple peril, by ZIP code for the location of individual
				  risks;
(D) fire (commercial and
				  personal lines fire coverages should be maintained and compiled in such a
				  manner as to allow them to be reported separately) including policies submitted
				  to, and/or gathered by the California FAIR Plan;
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.7 - Strategic Plans for Underserved Communities. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
					 section filed 5-15-96; operative 6-14-96 (Register 96, No. 20).
2.
					 Repealer filed 2-11-2003; operative 3-15-2003 (Register 2003, No.
					 7).
Note: Authority cited: California Insurance Code Sections
						12921 and
						12926;
						CalFarm v. Deukmejian, 48 Cal.3d 805 (1989); Reference: California Insurance
						Code Sections
						679.71,
						continually 1861.02, 1861.03, 1861.05 and
						11628.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.8 - Submission of Evidence Demonstrating an Existing Presence in Underserved Communities. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
					 section filed 5-15-96; operative 6-14-96 (Register 96, No. 20).
2.
					 Repealer filed 2-11-2003; operative 3-15-2003 (Register 2003, No.
					 7).
Note: Authority cited: California Insurance Code Sections
						12921 and
						12926;
						CalFarm v. Deukmejian, 48 Cal.3d 805 (1989); Reference: California Insurance
						Code Sections
						679.71,
						continually 1861.02, 1861.03, 1861.05 and
						11628.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.9 - Consumer Participation in the Commissioner's Decision to Accept or Reject a Strategic Plan for Underserved Communities or Evidence Demonstrating an Existing Presence. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
					 section filed 5-15-96; operative 6-14-96 (Register 96, No. 20).
2.
					 Repealer filed 2-11-2003; operative 3-15-2003 (Register 2003, No.
					 7).
Note: Authority cited: California Insurance Code Sections
						12921 and
						12926;
						CalFarm v. Deukmejian, 48 Cal.3d 805 (1989); Reference: California Insurance
						Code Sections
						679.71,
						continually 1861.02, 1861.03, 1861.05 and
						11628.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.10 - Timelines for Commissioner's Review; Procedures for Submission of Corrective Plans or Revised Evidence. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
					 section filed 5-15-96; operative 6-14-96 (Register 96, No. 20).
2.
					 Repealer filed 2-11-2003; operative 3-15-2003 (Register 2003, No.
					 7).
Note: Authority cited: California Insurance Code Sections
						12921 and
						12926;
						CalFarm v. Deukmejian, 48 Cal.3d 805 (1989); Reference: California Insurance
						Code Sections
						679.71,
						continually 1861.02, 1861.03, 1861.05 and
						11628.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 6 - Procedures for Determination of Rates › Section 2646.11 - Failure to Comply with Provisions of an Accepted Strategic Plan for Underserved Communities or Material Misstatement of Evidence Demonstrating an Existing Presence. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
					 section filed 5-15-96; operative 6-14-96 (Register 96, No. 20).
2.
					 Repealer filed 2-11-2003; operative 3-15-2003 (Register 2003, No.
					 7).
Note: Authority cited: California Insurance Code Sections
						12921 and
						12926;
						CalFarm v. Deukmejian, 48 Cal.3d 805 (1989); Reference: California Insurance
						Code Sections
						679.71,
						continually 1861.02, 1861.03, 1861.05 and
						11628.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 8 - Timelines for Scheduling and Commencing Hearings › Section 2648.1 - Scope

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Except as
				  provided for herein, this article applies to proceedings commenced by the
				  issuance of a notice of hearing, or other notice or order commencing a
				  proceeding on a rate application issued by the Commissioner pursuant to
				  Insurance Code Section
				  1861.05,
				  subdivision (c).
(b) This article
				  shall not apply to applications for exemption from Insurance Code Section
				  1861.01(a),
				  file and use rate applications filed prior to November 8, 1989, or applications
				  for rate changes pursuant to Insurance Code Section
				  1861.05
				  which are filed prior to July 1, 1993. Refiling of applications for rate
				  changes pursuant to Insurance Code Section
				  1861.05
				  shall be made by filing the Department cover sheet entitled "Cover Sheet for
				  Re-Filing of Application for Approval of Insurance Rates," Department form
				  number CA-RA1, dated May 1, 1993, which is incorporated by reference. In
				  addition, for those applications which were submitted with data that is no
				  longer current, updated data must also be submitted with the cover
				  sheet.
1. New
					 article 8 (sections
					 2648.1-2648.4) filed 7-12-93 as an
					 emergency; operative 7-12-93 (Register 93, No. 29). A Certificate of Compliance
					 must be transmitted to OAL 11-8-93 or emergency language will be repealed by
					 operation of law on the following day.
2. Certificate of Compliance
					 as to 7-12-93 order including amendment of subsection (b) transmitted to OAL
					 11-3-93 and filed 12-17-93 (Register 93, No.
					 51).
Note: Authority cited: Sections
						1861.05 and
						1861.055
						California Insurance Code. Reference: Sections
						1861.05 and
						1861.055,
						California Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 8 - Timelines for Scheduling and Commencing Hearings › Section 2648.2 - Receipt of Rate Change Application by Commissioner

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For the purpose of Insurance Code Section
				  1861.05(c),
				  a rate change application shall be considered to have been received by the
				  Commissioner on the date that it is received by the Department's Rate Filing
				  Bureau.
(b) Within 14 days of
				  receipt, the Commissioner shall review rate applications for completeness as
				  required by Insurance Code Section
				  1861.05(b).
				  If the application includes the forms and exhibits listed in the Filing
				  Checklist, as provided in Section
				  2648.4, and the data required
				  therein, it is complete. If the Commissioner determines that the application is
				  not complete because it does not include such forms, exhibits, or the data
				  required therein, notice stating the grounds for incompleteness will be given
				  to the insurer within the 14 day period and the application will be rejected.
				  Within 10 days of the date that such notice is given, the insurer may request a
				  hearing on the rejection.
(c) The
				  hearing shall be held within 10 days of receipt of the request by the
				  Department's Rate Enforcement Bureau. The scope of the hearing shall be limited
				  to the completeness of the application.
(d) If, after a hearing, an application is
				  determined to have been complete when filed, then the 180 day period specified
				  in Insurance Code Section
				  1861.05
				  shall have commenced on the date the application was first filed. If the
				  application is determined to be incomplete, then it shall remain
				  rejected.
(e) Rejection of an
				  application for incompleteness shall not bar the refiling of a complete
				  application.
(f) Public notice
				  required by Insurance Code Section
				  1861.05
				  shall be made within 10 days after the Commissioner determines that an
				  application is complete.
1. New
					 section filed 7-12-93 as an emergency; operative 7-12-93 (Register 93, No. 29).
					 A Certificate of Compliance must be transmitted to OAL 11-8-93 or emergency
					 language will be repealed by operation of law on the following
					 day.
2. Certificate of Compliance as to 7-12-93 order transmitted to
					 OAL 11-3-93 and filed 12-17-93 (Register 93, No. 51).
3. Change
					 without regulatory effect amending subsection (a) filed 8-27-2020 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 2020, No. 35).
Note: Authority cited: Sections
						1861.05 and
						1861.055,
						California Insurance Code. Reference: Sections
						1861.05 and
						1861.055,
						California Insurance Code.