1998 Regular Session
By: Senator(s) Ross, Kirby
Senate Bill 2809
(As Passed the Senate)
AN ACT TO AMEND SECTION 83-2-7, MISSISSIPPI CODE OF 1972, TO AUTHORIZE PROPERTY AND CASUALTY INSURERS TO EFFECT, ONE OR MORE TIMES A YEAR, A DECREASE IN RATES CURRENTLY APPROVED BY THE COMMISSIONER OF INSURANCE BY COMPLYING WITH CERTAIN FILING REQUIREMENTS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-2-7, Mississippi Code of 1972, is amended as follows:
83-2-7. (1) Except as provided in Section 83-2-9 and subsections (2) and (3) of this section, every insurer shall file with the commissioner all rates, supplementary rate information, policy forms and endorsements at least thirty (30) days prior to the proposed effective date which shall be stated in the filing. Rates, supplementary rate information, policy forms and endorsements need not be filed for inland marine risks which by general custom of the business are not written according to manual rules or rating plans. Upon the request of the commissioner, supporting information shall also be filed. Any filing made under this section is deemed to be approved unless disapproved by the Commissioner of Insurance within thirty (30) days after the date of filing.
(2) A filing of adjustments of rates for existing rating systems made under this section which does not involve a change in the relationship between such rates and the expense portion thereof or does not involve a change of the element of expenses which are paid as a percentage of premiums and does not involve a change in rate relativities among such classifications on any basis other than loss experience is effective on the date specified in the filing which shall not be less than thirty (30) days after the filing is made and shall be deemed to meet the requirements of this chapter.
Within thirty (30) days after receiving a filing, the commissioner may issue an order which delays the effective date of a filing under this section for not more than thirty (30) days after the date the order is issued if (a) the filing does not conform to generally accepted actuarial procedures; or (b) the amount of the rate adjustment is not justified by the supporting information. A delay order under this subsection shall specifically set forth the objections of the commissioner. The filing party may submit a corrected filing or supplemental information as appropriate. In the event that a corrected filing or supplemental information is not submitted, the filing is deemed to be withdrawn.
(3) An insurer may effect, one or more times a year, a decrease in rates currently approved by the commissioner by complying with the following filing requirements:
(a) The insurer by a rate filing shall notify the commissioner at least thirty (30) days prior to the date it wants to put into effect a decrease in rates currently approved for it by commissioner. In the rate filing, the insurer shall state the basis for the decrease in rates and its agreement that the decrease in rate filing shall remain in effect for at least three (3) months from the effective date. Within a 15-day period following the filing of a proposed decrease in rates, the commissioner will notify the insurer of the unacceptability of the filing for a decrease in rates. Notwithstanding any provision of this chapter to the contrary, the commissioner will only find unacceptable a decrease in rate filing if, in his opinion, the decrease in rates may have a tendency or capacity to imperil the financial condition of the filing insurer.
(b) The decrease in rate filing may be up to ten percent (10%) from the currently approved rates and shall apply to policyholders either by coverage or line of insurance.
(c) After a filing has been in effect for three (3) months or more, an insurer may automatically withdraw its decrease or a potion thereof by so notifying the commissioner at least thirty (30) days prior to the withdrawal date.
(4) No insurance company shall make or issue a contract or policy except in accordance with filings made with the commissioner, if such filings are required.
SECTION 2. This act shall take effect and be in force from and after July 1, 1998.