Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 500 - Property and Casualty › Chapter 6 - Workers' Compensation and Employers' Liability › Section 20 CSR 500-6.950 - Workers' Compensation Rate and Supplementary Rate Information Filings

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule sets forth the rules and
				  procedures which the director of the Department of Insurance deems necessary to
				  carry out the provisions for individual insurance companies making Workers'
				  Compensation insurance rate filings pursuant to sections 287.930-287.975, RSMo.
				  When making rate filings, individual insurers may utilize historical
				  rate-making data, as defined in this rule, and developed and tended as follows:
1)
by the Missouri
				Department of Insurance, 2) by the designated advisory organization or 3) by
				the insurer itself.
(1)
				Applicability and Scope. This rule applies to statutory Workers' Compensation
				insurance as described in sections
				287.090,
				287.280
				and
				287.310,
				RSMo and to insurers making filings under section
				287.947,
				RSMo.
(2) Definitions.
(A) Accepted actuarial standards means the
				standards adopted by the Casualty Actuarial Society in its Statement of
				Principles Regarding Property and Casualty Insurance Rate-making, and the
				Standards of Practice adopted by the Actuarial Standards Board.
(B) Advisory organization means any entity
				which has two (2) or more member insurers or is controlled either directly or
				indirectly by two (2) or more insurers, and which assists insurers in
				ratemaking related activities and is licensed pursuant to section
				287.967,
				RSMo. Two (2) or more insurers which have a common ownership or operate in this
				state under common management or control constitute a single insurer for the
				purposes of this definition. Advisory organization does not include a joint
				underwriting association, any actuarial or legal consultant, any employee of an
				insurer or insurers under common control or management or their employees or
				manager.
(C) Director means the
				director of the Missouri Department of Insurance.
(D) Expenses means that portion of any rate
				attributable to acquisition and field supervision; collection expenses and
				general expenses; and taxes, licenses and fees.
(E) Historical ratemaking data means
				information respecting Workers' Compensation insurance exposures, premiums and
				claims paid or reserves held for claims reported, including actual loss
				adjustment expenses paid or reserved for claims paid or reported but excluding
				all other expenses or profit, without judgmental adjustments such as loss
				development and projections through loss trending to a future point in
				time.
(F) Loss trending means any
				procedure projecting developed losses to the average date of loss for the
				period during which the policies are to be effective.
(G) Pure premium rate means that portion of
				the rate which represents the loss cost per unit of exposure including loss
				adjustment expense.
(H) Rate means
				the costs of insurance per exposure base unit, prior to any application of
				individual risk modifications based on loss or expense considerations, and does
				not include minimum premiums.
(I)
				Supplementary rate information means any manual or plan of rates,
				classification system, rating schedule, minimum premium, policy fee, rating
				rule, rating plan and any other similar information needed to determine the
				applicable premium for an insured.
(J) Supporting information means the
				experience and judgment of the filer and the experience or data of other
				insurers or organizations relied on by the filer, the interpretation of any
				statistical data relied on by the filer, descriptions of methods used in making
				the rates and any other similar information required to be filed by the
				director.
(3) Reference
				Filings-Advisory Historical Loss Costs.
(A)
				The advisory organization shall make reference filings and distribute
				historical rate-making data in the following manner adjusted for:
1. Development and loss trending by the
				advisory organization;
2.
				Development and loss trending by the director; and
3. Loss development without any trend
				factor.
(B) An insurer
				shall satisfy its rate filing obligation by submitting-
1. Final rates for each classification in
				which the insurer writes any voluntary market insurance;
2. The information required in section (4);
				and
3. All supplementary rate
				information used in developing the final premium of any insured.
(4) Required Filing
				Documents. All insurer rate filings shall include the following documents:
(A) Independent Rate Filing Form (Exhibit
				A);
(B) Rate Development Summary
				Form (Exhibit B);
(C) A TD-2 filing
				form and filing fee; and
(D) The
				final rate pages, including supplementary rate information, indicating the rate
				for each classification that the insurer chooses to market. Insurers shall file
				these rates using an electronically readable format. The director will outline
				the format for making the filings.
(5) Supplementary Rate Information.
(A) Advisory organizations may not develop
				and make filings of supplementary rating information except as provided in
				section 287.972.1, RSMo.
(B) Each
				insurer shall file all supplementary rate information it uses to determine the
				final premium of any insured employer.
(6) Filing of Rates Effective January 1,
				1994. All insurers writing Workers' Compensation insurance in this state shall
				file their rates in effect on January 1, 1994, along with all supplementary
				rate information. Insurers shall file these rates and supplementary rate
				information not later than thirty (30) days after their effective
				date.
(7) Filing of Rates Effective
				After January 1, 1994. All insurers filing rates after January 1, 1994, shall
				file these rates, along with all supplementary rate information, not later than
				thirty (30) days after their effective date. Nothing in this provision shall
				prevent insurers from making these filings at any time prior to the effective
				date of the filings.
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