SECTION 365:15-7-32. Use of "a" rates

(a)   An "a" rate is a rating rule or rate expressed as the symbol "a" or the words "refer to company" listed opposite a classification code on the manual rule and rate pages.

(1)   An insurer may not use an "a" rate if any advisory organization or any other insurer has established a manual rate based upon experience for the coverage.

(2)   Once an advisory organization or any insurer acquires sufficient experience to establish a manual rate for such coverage, then the coverage is no longer considered to be eligible for "a" rating.

(b)   An insurer shall file with the Commissioner a statement justifying the use of an "a" rating. The statement shall include the policies and procedures for underwriting and developing "a" rates and any formal guidelines established by the insurer for these situations. The filing shall include an acknowledgment that the coverage is no longer eligible for "a" rating once an advisory organization or an insurer acquires sufficient experience to establish a manual rate for such coverage. The justification statement shall be filed within thirty (30) days of the use of the rule and rate.

[Source: Added at 26 Ok Reg 1643, eff 7-14-09; Amended at 27 Ok Reg 1542, eff 7-14-10; Amended at 28 Ok Reg 1961, eff 7-14-11]