REGULATION OF FORMS AND RATES FOR PROPERTY AND CASUALTY INSURANCE
Rate Regulation-General Provisions
412:16 Rate Filings.
I. This section shall not apply to:
(a) Financial guaranty.
(b) Employment practices liability.
(c) Commercial inland marine that is not written according to manual rates or rating plans.
(d) Directors and officers liability.
(e) Boiler and machinery.
(f) Commercial credit insurance products.
(g) Surety bonds.
(h) Mortgage guaranty.
(i) Fiduciary liability.
II. Every insurer shall file with the commissioner every manual, predictive model or telematics model or other model that pertains to the formulation of rates and/or premiums, minimum premium, class rate, rating schedule or rating plan and every other rating rule, and every modification of any of the foregoing which it proposes to use. Personal lines filings shall include underwriting rules used by insurers or a group of affiliated insurers to the extent necessary to determine the applicable rate and/or policy premium for an individual insured or applicant. An insurer may file its rates by either filing its final rates or by filing a multiplier and, if applicable, an expense constant adjustment to be applied to prospective loss costs that have been filed by an advisory organization on behalf of the insurer as permitted by RSA 412:23. Every such filing shall state the effective date, and shall indicate the character and extent of the coverage contemplated. Information contained in the underwriting rules that does not pertain to the formulation of rates and/or premiums shall be identified by the filer as proprietary and shall be kept confidential by the department and shall not be subject to the provisions of RSA 91-A.
III. Every insurer shall file or incorporate by reference to material that has been filed with or approved by the commissioner, at the same time as the filing of the rate, all supplementary rating and supporting information to be used in support of or in conjunction with a rate. The information furnished in support of a filing may include or consist of a reference to:
(a) The experience or judgment of the insurer or information filed by the advisory organization on behalf of the insurer as permitted by RSA 412:23;
(b) Its interpretation of any statistical data it relies upon;
(c) The experience of other insurers or advisory organizations; or
(d) Any other relevant factors.
IV. When a filing is not accompanied by the information upon which the insurer supports such filing, the commissioner may require such insurer to furnish the required information upon which it supports such filing. Until the requested information is provided, the filing shall not be considered complete and may be subject to possible disapproval pursuant to the provisions of RSA 412:19, II.
V. After reviewing an insurer's filing if the commissioner finds that the data upon which the filing is based is fully credible under acceptable actuarial standards and practices, the commissioner may require that the insurer's rates be based upon the insurer's own loss, special assessment and expense information. If the insurer's loss or allocated loss adjustment expenses information is not actuarially credible, as determined by the commissioner, the insurer may use or supplement its experience with information filed with the commissioner by an advisory organization or statistical agent.
VI. Insurers utilizing the services of an advisory organization or statistical agent shall provide with their rate filing, at the request of the commissioner, a description of the rationale for such use, including its own information and method of utilization of the advisory organization's or statistical agent's information.
VII. In a competitive market, every insurer, except as specified in this chapter, shall file with the commissioner the information specified in this section that it will use in this state.
(a) For all personal risk policies, the rates and supplementary rating information shall be filed with the commissioner at least 30 days before the effective date.
(b) For all commercial risk policies, except policies issued to a large commercial policyholder, and except as provided in this chapter, the rates and supplementary rating information that will be used in this state shall be filed for informational purposes only within 30 days of the effective date.
(c) For policies of insurance issued to large commercial policyholders, defined in RSA 412:3, XI, the filing requirements of this section shall not apply. Information relating to classifications, rules, and rates applicable to any policy issued to a large commercial policyholder pursuant to this paragraph shall be kept available by the insurer for inspection by the commissioner, upon request.
(1) All policies issued pursuant to the provisions of this section shall contain a conspicuous disclaimer printed in at least 10-point, bold-faced type that states that the policy applied for, including the rates, rating plans, resulting premiums, and the policy forms, are not subject to the rate and form requirements of this state and other provisions of the insurance law that apply to other commercial products and may contain significant differences from a policy that is subject to all provisions of the insurance law. Such notice shall set forth possible differences in policy conditions, forms, and endorsements, as compared to a policy that is subject to all of the provisions of the insurance law. The commissioner may prescribe the format and provisions of such notice. The disclosure notice will also include a policyholder's acknowledgment statement, to be signed and dated prior to the effective date of the coverage, and shall remain on file with the insurer.
(2) In procuring insurance, a large commercial policyholder shall certify that it meets the eligibility requirements set out in RSA 412:3, XI and specify the requirements that the policyholder has met. This certification is to be completed annually and remain on file with the insurer.
(3) A surplus lines broker seeking to obtain or provide insurance for a large commercial policyholder is not authorized to purchase insurance from any eligible unauthorized insurer without making a diligent search of authorized insurers as required by RSA 405:24.
(d) In a competitive market, if the commissioner finds, after a hearing that an insurer's rates require closer supervision because of the insurer's financial condition or unfairly discriminatory rating practices, the insurer shall file with the commissioner at least 30 days before the effective date, all such rates and supplementary rating information and supporting information as prescribed by the commissioner. Upon application by the filer, the commissioner may authorize an earlier effective date.
VIII. In a noncompetitive market, subject to the exceptions specified in RSA 412:16, IX and X, and RSA 412:28, each filing shall be on file for a waiting period of 30 days before it becomes effective, which period may be extended by the commissioner for an additional period not to exceed 60 days if written notice is given within such waiting period to the insurer or advisory organization which made the filing that additional time is needed for the consideration of the filing. Upon written application by the insurer, the commissioner may authorize a filing that has been reviewed to become effective before the expiration of the waiting period or any extension thereof. A filing shall be deemed to meet the requirements of this chapter unless disapproved by the commissioner within the waiting period or any extension thereof. Failure of the insurer or advisory organization to provide the requested information within the waiting period or the extension thereof shall be deemed a request to withdraw the filing from further consideration. Failure of the commissioner to act within the waiting period or the extension thereof shall result in the filing being deemed to meet the requirements of this chapter. Neither the insurer nor the commissioner may waive the timeliness requirements of the provisions in this section.
IX. The commissioner may, by written order, suspend or modify the requirement of filing as to any kind of insurance, subdivision or combination thereof, or as to classes of risks, for which the rates cannot practicably be filed before they are used. The commissioner may make such examination as deemed advisable to ascertain whether any rates affected by such order meet the standards set forth in RSA 412:15.
X. Upon the written application of the insured, stating his or her reasons therefor, filed with and approved by the commissioner, a rate in excess of or below that provided by a filing otherwise applicable may be used on any specific risk.
XI. A filing and any supporting information not considered proprietary pursuant to paragraph II shall be open to public inspection on or after the effective date.
XII. No insurer shall make or issue a contract or policy except in accordance with the filings that are in effect for the insurer as provided in this chapter.
XIII. A rate for a residual market in which insurers are mandated by law to participate shall not become effective until approved by the commissioner.
Source. 2003, 150:1. 2004, 156:4. 2008, 212:6, eff. June 16, 2008. 2016, 115:3-5, eff. July 19, 2016. 2017, 55:7, 8, eff. Aug. 1, 2017. 2019, 10:3, eff. July 9, 2019; 101:2, eff. Aug. 20, 2019.