CHAPTER 701

PERSONAL AND COMMERCIAL RISK INSURANCE
RATING PRACTICES

Table of Contents

Sec. 38a-663. (Formerly Sec. 38-201a). Definitions.

Sec. 38a-688a. Rate filing re personal risk insurance. Powers of commissioner.


Sec. 38a-663. (Formerly Sec. 38-201a). Definitions. The following words and phrases, as used in sections 38a-663 to 38a-696, inclusive, shall have the following meanings unless the context otherwise requires:

(1) “Rating organization” means an individual, partnership, corporation, unincorporated association, other than an admitted insurer, whether located within or outside this state, who or that has as a primary object or purpose the making of rates, rating plans or rating systems. Two or more admitted insurers that act in concert for the purpose of making rates, rating plans or rating systems, and that do not operate within the specific authorizations contained in sections 38a-667, 38a-669, 38a-670 and 38a-672 shall be deemed to be a rating organization. No single insurer shall be deemed to be a rating organization.

(2) “Advisory organization” means every group, association or other organization of insurers, whether located within or outside this state, that assists insurers or rating organizations in rate-making by the collection and furnishing of loss or expense statistics, or by the submission of recommendations, provided the term shall not include actuarial, legal or other consultants.

(3) “Member” means an insurer that participates in or is entitled to participate in the management of a rating, advisory or other organization.

(4) “Subscriber” means an insurer that is furnished at its request (A) with rates and rating manuals by a rating organization of which it is not a member, or (B) with advisory services by an advisory organization of which it is not a member.

(5) “Wilful” and “wilfully” in relation to an act or omission that constitutes a violation of sections 38a-663 to 38a-681, inclusive, means with actual knowledge or belief that such act or omission constitutes such violation and with specific intent to commit such violation.

(6) “Market” means the interaction between buyers and sellers consisting of a product market component and a geographic market component, as determined by the commissioner in accordance with the provisions of subsection (b) of section 38a-687.

(7) “Noncompetitive market” means a residual market or a market for which there is a ruling in effect pursuant to section 38a-687, that a reasonable degree of competition does not exist.

(8) “Competitive market” means a market that has not been found to be noncompetitive pursuant to section 38a-687.

(9) “Personal risk insurance” means homeowners, tenants, private passenger nonfleet automobile, mobile manufactured home and other property and casualty insurance for personal, family or household needs except workers’ compensation insurance.

(10) “Commercial risk insurance” means insurance within the scope of sections 38a-663 to 38a-696, inclusive, that is not personal risk insurance.

(11) “Supplementary rate information” includes any manual or plan of rates, classification, rating schedule, minimum premium, rating rule, and any other similar information needed to determine the applicable rate in effect or to be in effect.

(12) “Supporting information” means (A) the experience and judgment of the filer and the experience or data of other insurers or organizations relied upon by the filer, (B) the interpretation of any statistical data relied upon by the filer, and (C) descriptions of methods used in making the rates, and other similar information required to be filed by the commissioner.

(13) “Residual market” means an arrangement for the provision of insurance in accordance with the provisions of section 38a-328, 38a-329 or 38a-670.

(1969, P.A. 665, S. 1; P.A. 82-353, S. 3; June Sp. Sess. P.A. 83-3, S. 1; P.A. 01-174, S. 12; P.A. 15-118, S. 55.)

History: P.A. 82-353 subdivided the section, amended the definition of “advisory organization” to exclude actuarial, legal and other consultants and defined “market”, “noncompetitive market”, “competitive market”, “personal risk insurance”, “commercial risk insurance”, “supplementary rate information”, “supporting information” and “residual market”; June Sp. Sess. P.A. 83-3 changed term “mobile home” to “mobile manufactured home” in Subdiv. (i); Sec. 38-201a transferred to Sec. 38a-663 in 1991; P.A. 01-174 substituted references to Sec. 38a-696 for Sec. 38a-697 in the introductory language and in Subdiv. (j) and made a technical change in Subdiv. (l); P.A. 15-118 redesignated existing Subdivs. (a) to (m) as Subdivs. (1) to (13) and made technical and conforming changes.

Sec. 38a-688a. Rate filing re personal risk insurance. Powers of commissioner. (a) Notwithstanding the requirements of sections 38a-389 and 38a-688 with respect to personal risk insurance with the exception of residual market rates, and on and after July 1, 2006, and until July 1, 2017, an insurer may file a rate with the Insurance Commissioner pursuant to this section and such rate shall take effect the date it is filed provided the rate provides for an overall state-wide rate increase or decrease of not more than six per cent in the aggregate and not more than a fifteen per cent increase in any individual territory for all coverages that are subject to the filing. Such percentage limits shall not apply on an individual insured basis. Not more than one filing may be made by an insurer pursuant to this section within any twelve-month period unless the filing, when combined with one or more filings made by the insurer within the preceding twelve months, does not result in an overall state-wide increase or decrease of more than six per cent in the aggregate and not more than a fifteen per cent increase in any individual territory for all coverages that are subject to the filing.

(b) A filing that does not meet the criteria set forth in subsection (a) of this section shall be subject to sections 38a-389 and 38a-688 unless the filing is otherwise exempt from said sections.

(c) A filing submitted pursuant to subsection (a) of this section shall be deemed to comply with the requirements of this chapter, except that the commissioner shall have the authority to determine whether the filing is inadequate or unfairly discriminatory. In the event the commissioner determines that the filing is inadequate or unfairly discriminatory, the commissioner shall issue a written order specifying in detail the reasons why the filing is inadequate or unfairly discriminatory. The order shall indicate a future date on which the filing shall no longer be effective. An order by the commissioner pursuant to this subsection that is issued more than thirty days after the date the rate is filed with the commissioner shall be prospective only and shall not affect any contract issued or made before the effective date of the order.

(d) No rate increase that meets the criteria set forth in subsection (a) of this section may be implemented with respect to an individual policy in effect on the date of the filing unless the increase is applicable no earlier than the date of policy renewal and the insurer provides notice of the increase to the insured pursuant to section 38a-323.

(P.A. 06-104, S. 2; P.A. 09-217, S. 1; P.A. 11-253, S. 1; P.A. 13-167, S. 1; P.A. 14-235, S. 32; P.A. 15-185, S. 1.)

History: P.A. 06-104 effective July 1, 2006; P.A. 09-217 amended Subsec. (a) to extend filing date from July 1, 2009, to July 1, 2011, effective July 8, 2009; P.A. 11-253 amended Subsec. (a) to extend filing date to July 1, 2013, effective July 13, 2011; P.A. 13-167 amended Subsec. (a) to extend filing date to July 1, 2015, to add limit of not more than 15 per cent increase in any individual territory, and to make a conforming change, effective June 21, 2013; P.A. 14-235 made a technical change in Subsec. (a); P.A. 15-185 amended Subsec. (a) to extend filing date to July 1, 2017, effective June 30, 2015.