North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 10 - PROPERTY AND CASUALTY DIVISION › Section .1100 - RATE FILINGS › Section 10 .1104 - NONFLEET PRIVATE PASSENGER AUTOMOBILE

Current through Register Vol. 39, No. 2, July 15, 2024
The information required by N.C.G.S.
				  58-36-15(h) for nonfleet
				  private passenger automobile rate filings shall be presented as follows:
Note: If data required by this Rule, other than that
				  specified in Subparagraph (3)(c), are not being collected or reported, or are
				  not readily available to insurers prior to January 1, 1991, then insurers shall
				  commence as of that date prospectively collecting and reporting such data. The
				  date for commencing prospectively collecting and reporting the data specified
				  in Subparagraph (3)(c) is January 1, 1992. Thereafter, such required data as
				  have accrued shall be included in each filing until enough data are available
				  to fully satisfy this Rule. If in addition to the full years of data specified
				  in any of the Subparagraphs below, more recent data of less than a full year
				  are available, such data shall also be provided. If updates to the information
				  specified in any of the Subparagraphs in this Rule become available before the
				  close of evidence relating to the filing, they shall also be provided.
(1) North Carolina earned premiums at the
				actual and current rate level; losses and loss adjustment expenses, each on
				paid and incurred bases without trending or other modification for the
				experience period, including the loss ratio anticipated at the times the rates
				were promulgated for the experience period:
(a) Include premium, loss, loss adjustment
				expense, expense, and exposure data from all companies writing North Carolina
				nonfleet private passenger automobile insurance. If the experience of any
				company that writes more than one percent of the North Carolina nonfleet
				private passenger automobile written premium has been excluded from any rate
				level, trend, loss development, or investment income calculation for any
				coverage, identify the coverage, the company and its market share and provide
				an explanation for its exclusion. Also estimate the aggregate market share of
				other companies whose experience is excluded from such calculations.
(b) Include data relating to increased limits
				factors and deductible credits if such factors have not been reviewed in the
				last two filings or reviews. Provide justification that the factors and credits
				contained in the filing are neither excessive, inadequate, nor unfairly
				discriminatory. Also provide all information related to their derivation,
				including the following:
(i) A description of
				all data reviewed and all worksheets used;
(ii) complete description of the methodology
				used to derive these factors and credits;
(iii) A description of alternative
				methodologies used or considered for use in the last three years;
(iv) A description of the criteria used to
				select a methodology;
(v) Specific
				details on the application of these criteria in the selection of a methodology
				for this filing;
(vi) Details on
				the application of the methodology to this filing.
(c) Clearly describe all adjustments to
				premiums, losses, loss adjustment expenses, and exposures included in the
				filing. Show the unadjusted amounts to which adjustments were made, identify
				the specific adjustments, provide details on the derivation and application of
				the adjustment factors, and describe all intermediate calculations. Where
				identical adjustments are applied to a set of similar data, an example of one
				of these adjustments is similar.
(d) For each coverage, include actual earned
				premiums and calculate earned premiums at present rates. Also indicate how such
				calculations were produced, supply supporting documentation for a sample of
				such calculations, and justify any aggregate factors used.
(e) Provide the latest written and earned
				premiums and market shares for the ten largest writers of North Carolina
				nonfleet private passenger automobile insurance.
(f) Provide composite loss and premium
				information from each of the latest two Annual Statements for the 50 largest
				writers of North Carolina nonfleet private passenger insurance, including the
				following:
(i) Underwriting and Investment
				Exhibit, Part 2, Lines 19 and 21;
(ii) Underwriting and Investment Exhibit,
				Part 3, Lines 19 and 21;
(iii)
				North Carolina Page 14, Lines 19.1, 19.2, and 21.1.
(g) Except in filings made by the North
				Carolina Reinsurance Facility, provide to the extent possible the following
				information on companies deviating from the nonfleet private passenger
				automobile rates of the North Carolina Rate Bureau for each of the latest five
				calendar years by line:
(i) A list of all
				companies writing at deviated rates;
(ii) he estimated premium written at deviated
				rates;
(iii) The estimated
				percentage of statewide premium written at deviated rates;
(iv) The amount of deviations in
				dollars;
(v) he average percentage
				deviation for companies writing at deviated rates;
(vi) The average percentage deviation for all
				companies.
(h) Except in
				filings made by the North Carolina Reinsurance Facility, provide the following
				information on companies issuing dividends on North Carolina nonfleet private
				passenger automobile policies for each of the latest five calendar years by
				line:
(i) A list of all companies issuing
				dividends;
(ii) The estimated
				premium of companies issuing dividends;
(iii) The estimated percentage of statewide
				premium written by companies issuing dividends;
(iv) The amount of dividends in
				dollars;
(v) he average percentage
				dividend issued by all companies issuing dividends;
(vi) The average percentage dividend issued
				by all companies.
(i)
				Provide the following information on losses and loss adjustment expenses:
(i) A comparison of the undeveloped and
				untrended private passenger automobile liability and physical damage losses and
				premium contained in the latest three Annual Statements and those contained in
				the filing. Identify the causes of the differences and provide approximate
				quantification of the effects of each cause;
(ii) For each rate level implemented in the
				latest three calendar years, the expected loss ratios that were anticipated in
				the implemented rates, by coverage;
(iii) For each accident year included in the
				filing, paid losses, case basis reserves, loss development, incurred allocated
				loss adjustment expense (if collected separately from losses), estimated
				incurred unallocated (or combined allocated and unallocated) loss adjustment
				expense, applied trend factors, and trended incurred losses and loss adjustment
				expenses, by coverage.
(j) Whenever North Carolina losses are
				separated into excess (catastrophe) and nonexcess (noncatastrophe) losses,
				provide a clear description and justification of the standard used to separate
				such losses. Include as many years of data as are available. If the number of
				years used differs from the number available, provide an explanation. Also
				provide an explanation if the data from which the excess loading is derived
				differs from that on which the rate level change is based.
(k) Territorial rate calculations shall
				include earned premiums, incurred losses, and the number of claims by territory
				for each of the years used to determine the territorial relativities.