§ 27-7.1-1.1. Definitions.
The following definitions shall apply for purposes of this chapter:
(1) “Accepted actuarial standards” means the standards adopted by the casualty actuarial society in its statement of principles regarding property and casualty insurance ratemaking, and the standards of practice adopted by the actuarial standards board.
(2) “Advisory organization” means any entity, including its affiliates or subsidiaries that assists insurers in ratemaking-related activities, and is licensed in accordance with the provisions of § 27-9-22.
(3) “Classification system” means the plan, system, or arrangement for recognizing differences in exposure to hazards among industries, occupations of operations of insurance policyholders.
(4) “Department” means the department of business regulation.
(5) “Developed losses” means losses (including loss adjustment expenses) adjusted using standard actuarial techniques, to eliminate the effect of differences between current payment or reserve estimates and those which are anticipated to provide actual ultimate loss (including loss adjustment expense) payments.
(6) “Director” means the director of the department of business regulation.
(7) “Expenses” means a workers’ compensation insurer’s determination of the expenses, other than loss expenses and loss adjustment expenses, associated with writing workers’ compensation insurance.
(8) “Experience rating” means a rating procedure utilizing past insurance experience of the individual policyholder to forecast future losses by measuring the policyholder’s loss in the same classification to produce a prospective premium credit, debt or unity modification.
(9) “Insurer” means any person writing coverage under the workers’ compensation laws of this state.
(10) “Loss trending” means any procedure for projecting developed losses to the average date of loss for the period during which the policies are to be effective, including loss ratio trending.
(11) “Prospective loss costs” means historical aggregate losses and loss adjustment expenses, including all assessments that are loss-based, projected through development to their ultimate value and through trending to a future point in time, ascertained by accepted actuarial standards. Prospective loss costs do not include provisions for profit or expenses other than loss adjustment expenses.
(12) “Pure premium rate” means that portion of the rate that represents the loss cost per unit of exposure including loss adjustment expense.
(13) “Rate or rates” means rate of premium, policy and membership fee, or any other charge made by an insurer for or in connection with a contract or policy of workers’ compensation and employer’s liability insurance, prior to application of individual risk variations based on loss or expense considerations, and does not include minimum premiums.
(14) “Special assessments” means insurers’ insolvency fund assessments, workers’ compensation administration fund assessments, capital assessments for the state compensation insurance fund, and other similar assessments. Special assessments shall not be considered as either expenses or losses, but shall be treated as separate costs by insurers’ and shall be assessed on their policyholders in accordance with rules set forth by an advisory organization and approved by the director.
(15) “Statistical plan” means the plan, system, or arrangement used in collecting data.
(16) “Supplementary rating information” includes any manual or plan of rates, classification, rating schedule, minimum premium, policy fee, rating rule, underwriting rule, statistical plan and any other similar information needed to determine the applicable premium for an individual insured and not inconsistent with the purposes of this act, as prescribed by the director.
(17) “Supporting information” means (i) the experience and judgment of the filer and the experience or data of other insurers or advisory organizations relied upon by the filer; (ii) the interpretation of any other data relied upon by the filer; and (iii) descriptions of methods used in making the rates, and any other information required by the director to be filed.
History of Section.
P.L. 1998, ch. 148, § 3.