North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 10 - PROPERTY AND CASUALTY DIVISION › Section .1100 - RATE FILINGS › Section 10 .1105 - OTHER RATE BUREAU LINES

Current through Register Vol. 39, No. 2, July 15, 2024
The information required by N.C.G.S.
				  58-36-15(h) for rate filings
				  made by the North Carolina Rate Bureau affecting other than workers'
				  compensation or nonfleet private passenger automobile policies shall be
				  presented as follows:
Note: If the data required by this Rule are not currently
				  being collected or reported, or are not currently readily available, the
				  insurers shall commence prospectively collecting and reporting such data
				  beginning on January 1, 1993. If certain data are not regularly collected
				  through the statistical plan, a special call for such data to companies whose
				  aggregate written premium is at least two-thirds of the total North Carolina
				  written premium for the coverages affected by the filing may be substituted.
				  Thereafter, such required data as have accrued shall be included in each filing
				  until enough data are available to satisfy fully this Rule. If in addition to
				  the full years of data specified in any of the Subparagraphs in this Rule, 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 time the rates
				were promulgated for the experience period.
(a) Include premium, loss, and loss
				adjustment expense, and expense data from all companies writing a coverage
				affected by the filing. In addition, if exposures are used in the calculation
				of premiums at present rates, provide all available exposure data from these
				companies. If the experience of any of the 50 largest writers (based on North
				Carolina written premium) of such insurance has been excluded from any rate
				level, trend, loss development, relativity, or investment income calculations
				for that coverage, identify 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) In filings producing an overall rate
				level change for farmowners policies, use only the experience from coverages
				under the jurisdiction of the North Carolina Rate Bureau when calculating that
				change. Indicate if and how non-Bureau data has been segregated and if and how
				such data has affected any aspect of the filing (e.g., trend, expense
				provisions, etc.).
(c) Clearly
				describe all adjustments to premiums, losses, loss adjustment expenses,
				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 sufficient.
(d) 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 the
				calculations, and justify all aggregate factors used.
(e) Provide the latest written and earned
				premiums and market shares for the ten largest writers (based on North Carolina
				written premium) of the coverages affected by the filing.
(f) In filings producing an overall rate
				level change for either homeowners or farmowners policies, provide composite
				loss and premium information from each of the latest two Annual Statements for
				which aggregate data are available for the 50 largest writers (based on North
				Carolina written premium) of the coverages affected by the filing, including
				the following:
(i) Underwriting and
				Investment Exhibit, Part 2;
(ii)
				Underwriting and Investment Exhibit, Part 3A;
(iii) North Carolina Page 14 (for all such
				companies).
For homeowners filings, provide the information on line 4;
				  for farmowners filings, the information on line 3.
(g) In filings affecting either homeowners or
				farmowners policies, provide to the extent possible the following information
				on companies deviating from the homeowners or farmowners rates of the North
				Carolina Rate Bureau for each of the latest five calendar years:
(i) A list of all companies writing at
				deviated rates;
(ii) The 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) The average percentage
				deviation for companies writing at deviated rates;
(vi) The average percentage deviation for all
				companies.
(h) In
				filings affecting either homeowners or farmowners policies, provide to the
				extent possible the following information on companies issuing dividends on
				North Carolina homeowners or farmowners policies for each of the latest five
				calendar years:
(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) The average percentage
				dividend issued by companies issuing dividends;
(vi) The average percentage dividend issued
				by all companies.
(i) In
				filings producing an overall rate level change, provide the following
				information on losses and loss adjustment expenses, separately for liability
				and property losses, for each year of loss experience used in calculating that
				change:
(i) Paid losses and number of paid
				claims;
(ii) Case basis reserves
				and number of outstanding claims;
(iii) Applied loss development
				factor;
(iv) Loss adjustment
				expense factor;
(v) Applied trend
				factor;
(vi) Trended incurred
				losses and loss adjustment expenses;
(vii) The expected loss ratios that were
				anticipated in the rates in effect during that year.
(j) If data from monoline coverages is used
				in the determination of package rate levels or vice versa, provide to the
				extent possible the following information:
(i) A clear description of the differences
				between the types of data;
(ii) A
				description of which causes of loss are included or excluded;
(iii) Information on whether any companies
				have been excluded from either monoline or package data;
(iv) Comparable loss data for all years
				included in the filing, if available. (For example, if monoline experience
				before a certain date supplements package experience after that date, also
				include the monoline experience after that date.)
(k) 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 possible. If the number of years
				included differs from the number available, indicate the years excluded and
				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.
(l) In filings producing an
				overall rate level change, provide loss data by cause of loss in as much
				statistical detail as is available for each year used in calculating that
				change and describe any adjustment procedures or factors applied to the
				separated data.