Contact Person:

Illinois Department of Insurance

320 West Washington Street

Gayle Neuman

Review Requirements Checklist

Springfield, IL 62767-0001

217-524-6497

 

 

gayle.neuman@illinois.gov

 

Effective as of 8/25/06

 

 

 

 

Line(s) of Business

 

Code(s)

 

 

 

 

___MEDICAL MALPRACTICE

11.0000

***This checklist is for rate/rule

 

 

 

___Claims Made

11.10000

     filings only.

 

 

 

___Occurrence

11.2000

     See separate form checklist.

 

 

 

 

 

 

 

 

Line(s) of Insurance

Code(s)

Line(s) of Insurance

Code(s)

Line(s) of Insurance

Code(s)

___Acupuncture

11.0001

___Hospitals

11.0009

___Optometry

11.0019

___Ambulance Services

11.0002

___Professional Nurses

11.0032

___Osteopathy

11.0020

___Anesthetist

11.0031

___Nurse – Anesthetists

11.0010

___Pharmacy

11.0021

___Assisted Living Facility

11.0033

___Nurse – Lic. Practical

11.0011

___Physical Therapy

11.0022

___Chiropractic

11.0003

___Nurse – Midwife

11.0012

___Physicians & Surgeons

11.0023

___Community Health Center

11.0004

___Nurse – Practitioners

11.0013

___Physicians Assistants

11.0024

___Dental Hygienists

11.0005

___Nurse – Private Duty

11.0014

___Podiatry

11.0025

___Dentists

11.0030

___Nurse – Registered

11.0015

___Psychiatry

11.0026

___Dentists – General Practice

11.0006

___Nursing Homes

11.0016

___Psychology

11.0027

___Dentists – Oral Surgeon

11.0007

___Occupational Therapy

11.0017

___Speech Pathology

11.0028

___Home Care Service Agencies

11.0008

___Ophthalmic Dispensing

11.0018

___Other

11.0029

 

 

Illinois Insurance Code Link

Illinois Compiled Statutes Online

 

Illinois Administrative Code Link

Administrative Regulations Online

 

Product Coding Matrix Link

Product Coding Matrix

 

NAIC Uniform Transmittal Form

50 IL Adm. Code 929

 

NAIC Uniform Transmittal Form

If insurers wish to use the NAIC Uniform Transmittal form in lieu of a cover letter/explanatory memorandum, the Department will accept such form, as long as all information required in the “Cover Letter & Explanatory Memorandum” section below are properly included.

NAIC Self-Certification Pilot Program

Newsletter Article regarding Department's Participation

 

Self-Certification form

If an authorized company officer completes the Self-Certification form, and submits such form as the 1st page of the filing, the Department will expedite review of the filing ahead of all other filings received to date.  The Department will track company compliance with the laws, regulations, bulletins, and this checklist and report such information to the NAIC.

Location of Standard within Filing Column

See checklist format below.

To expedite review of your filing, use this column to indicate location of the standard within the filing (e.g. page #, section title, etc.) 

Description of Review Standards Requirements Column

See checklist format below.

These brief summaries do not include all requirements of all laws, regulations, bulletins, or requirements, so review actual law, regulation, bulletin, or requirement for details to ensure that forms are fully compliant before filing with the Department of Insurance.

 

 

FILING REQUIREMENTS FOR FORM FILINGS

 

 

REFERENCE

 

DESCRIPTION OF REVIEW STANDARD REQUIREMENT

 
LOCATION OF STANDARD WITHIN FILING

See separate form filing checklist.

 

To assist insurers in submitting compliant medical liability rate/rule filings as a result of newly-passed PA94-677 (SB475), the Department has created this separate, comprehensive rate/rule filing checklist for medical liability filings.

 

Please see the separate form filing checklist for requirements related to medical liability forms.

 

GENERAL FILING REQUIREMENTS FOR ALL RATE/RULE FILINGS

 

 

 

LINE OF AUTHORITY

 

 

 

Must have proper Class and Clause authority to conduct this line of business in Illinois.

215 ILCS 5/4

List of Classes/Clauses

To write Medical Liability insurance in Illinois, companies must be licensed to write:

  1. Class 2, Clause (c)

 

RATES AND RULES REQUIRED TO BE FILED

 

 

 

Rates/Rules Must be Filed Separately from Forms

 

 

 

Insurers shall make separate filings for rate/rules and for forms/endorsements, etc.

 

 

The laws and regulations for medical liability forms/endorsements and the laws for medical liability rates/rules are different and each must be reviewed according to its own set of laws/regulations/procedures.  Therefore, insurers are required to file forms and rates/rules separately.

 

For requirements regarding form filings, see separate form filing checklist.

 

New Insurers

 

 

 

New insurers must file their rates, rules, plans for gathering statistics, etc. upon commencement of business.

 

  

 

 

215 ILCS 5/155.18

 

50 IL Adm. Code 929

“New Insures” are insurers who are:

 

·         New to Illinois.

·         New writers of medical liability insurance in Illinois.

·         Writing a new Line of Insurance listed on Page 1 of this checklist,

 

New insurers must file the following:

 

a)  Medical liability insurance rate manual, including all rates.

b)  Rules, including underwriting rule manuals which contain rules for applying rates or rating plans,

c)  Classifications and other such schedules used in writing medical liability insurance. 

d)  Statement regarding whether the insurer:

 

·         Has its own plan for the gathering of medical liability statistics; or

·         Reports its medical liability statistics to a statistical agent (and if so, which agent).

 

The Director, at any time, may request a copy of the insurer’s statistical plan or request the insurer to provide written verification of membership and reporting status from the insurer’s reported statistical agency.

 

Insurers are instructed to review all requirements in this checklist, including the requirements for applicable actuarial documentation, as well as all medical liability laws and regulations, to ensure that the filing contains all essential elements before submitting the filing to the Department.

 

Amendments to Initial Rate/Rule Filings

 

 

 

After a new insurer has filed the rates/rules/information described above, insurers must file rates/rules, or advise of changes to statistical plans, as often as they are amended.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

After a new insurer has filed the rates/rules/information described above, insurers must file rates/rules/rating schedules (as described above for new business) as often as such filings are changed or amended, or when any new rates or rules are added.

Any change in premium to the company's insureds as a result of a change in the company's base rates or a change in its increased limits factors shall constitute a change in rates and shall require a filing with the Director.

Insurers shall also advise the Director if its plans for the gathering of statistics has changed, or if the insurer has changed statistical agents.

 

The Director, at any time, may request a copy of the insurer’s statistical plan or request the insurer to provide written verification of membership and reporting status from the insurer’s reported statistical agency.

 

Insurers are instructed to review all requirements in this checklist, including the requirements for applicable actuarial documentation, as well as all medical liability laws and regulations, to ensure that the filing contains all essential elements before submitting the filing to the Department.

 

EFFECTIVE DATES OF RATE/RULE FILINGS

 

 

 

Illinois is “file and use” for medical liability rates and rules.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

A rate/rating plan/rule filing shall go into effect no earlier than the date the filing is received by the Department of Insurance, Property & Casualty Compliance Section, except as otherwise provided in Section 155.18.

 

ADOPTIONS OF ADVISORY ORGANIZATION FILINGS

 

 

 

Insurer must file all rates and rules on its own behalf.

50 IL Adm. Code 929

Although Rule 929 allows for insurers to adopt advisory organization rule filings, advisory organizations no longer file rules in Illinois.

 

COPIES, RETURN ENVELOPES, ETC.

 

 

 

Requirement for duplicate copies and return envelope with adequate postage.

50 IL Adm. Code 929

Insurers that desire a stamped returned copy of the filing or submission letter must submit a duplicate copy of the filing/letter, along with a return envelope large enough and containing enough postage to accommodate the return filing.

 

COVER LETTER & EXPLANATORY MEMORANDUM

 

 

 

Two copies of a submission letter are required, and the submission letter must contain the information specified.

"Me too" filings are not allowed.

Use of NAIC Uniform Transmittal form is acceptable as long as all required information is included. 

215 ILCS 5/155.18

 

50 IL Adm. Code 929

 

Company Bulletin 88-53

 

Actuarial Certification Form

 

NAIC Uniform Transmittal Form

All filings must be accompanied by a submission letter which includes all of the following information:

 

1) Exact name of the company making the filing.

 

2) Federal Employer Identification Number (FEIN) of the company making the filing.

 

3)  Unique filing identification number – may be alpha, numeric, or both.  Each filing number must be unique within a company and may not be repeated on subsequent filings.  If filing subsequent revisions to a pending filing, use the same filing number as the pending filing or the revision(s) will be considered a new filing.

 

4)  Identification of the classes of medical liability insurance to which the filing applies (for identifying classes, refer to Lines of Insurance shown on Page 1 of this checklist, in compliance with the NAIC Product Coding Matrix).

 

5)  Notification of whether the filing is new or supersedes a present filing.  If filing supersedes a present filing, insurer must identify all changes in superseding filings, and all superseded filings, including the following information:

 

·         Copy of the complete rate/rule manual section(s) being changed by the filing with all changes clearly highlighted or otherwise identified.

·         Written statement that all changes made to the superseded filing have been disclosed.

·         List of all pages that are being completely superseded or replaced with new pages.

·         List of pages that are being withdrawn and not being replaced.

·         List of new pages that are being added to the superseded filing.

·         Copies of all manual pages that are affected by the new filing, including but not limited to subsequent pages that are amended solely by receiving new page numbers.

 

6) Effective date of use.

 

7) Actuarial certification (see Actuarial Certification section below).  Insurers may use their own form or may use the sample form developed by the Department.

 

8)  Statement that the insurer, in offering, administering, or applying the filed rate/rule manual and/or any amended provisions, does not unfairly discriminate.

 

Companies under the same ownership or general management are required to make separate, individual company filings. Company Group ("Me too") filings are unacceptable.

If insurers wish to use the NAIC Uniform Transmittal form in lieu of a cover letter/explanatory memorandum, the Department will accept such form, as long as all information required in this section is properly included.

 

FORM RF-3 Summary Sheet

 

 

 

For any rate change, duplicate copies of Form RF-3 must be filed, no later than the effective date.

50 IL Adm. Code 929

 

Form RF-3 Summary Sheet

For any rate level change, insurers must file two copies of Form RF-3 (Summary Sheet) which provides information on changes in rate level based on the company’s premium volume, rating system, and distribution of business with respect to the classes of medical liability insurance to which the rate revision applies.  Such forms must be received by the Department’s Property & Casualty Compliance Section no later than the stated effective date of use.

 

Insurers must report the rate change level and premium volume amounts on the “Other” Line and insert the words “Medical Liability” on the “Other” descriptive line.  Do not list the information on the "Other Liability" line.

 

If the Medical Liability premium is combined with any other Lines of Business (e.g. CGL, commercial property, etc.), the insurer must report the effect of rate changes to each line separately on the RF-3, indicating the premium written and percent of rate change for each line of business. 

 

The RF-3 form must indicate whether the information is "exact" or "estimated."

 

PAYMENT PLANS

 

 

 

Quarterly premium payment installment plan required as prescribed by the Director.

215 ILCS 5/155.18

A company writing medical liability insurance in Illinois shall offer to each of its medical liability insureds the option to make premium payments in quarterly installments as prescribed by and filed with the Director.  Such option must be offered in the initial offer of the policy or in the first policy renewal occurring after January 1, 2006.  Thereafter, the insurer need not offer the option, but if the insured requests it, must make it available.  Such plans are subject to the following minimum requirements:

 

·         May not require more than 40% of the estimated total premium to be paid as the initial payment;

 

·         Must spread the remaining premium equally among the 2nd, 3rd, and 4th installments, with the maximum set at 30% of the estimated total premium, and due 3, 6, and 9 months from policy inception, respectively;

 

·         May not apply interest charges;

 

·         May include an installment charge or fee of no more than the lesser of 1% of the total premium or $25;

 

·         Must spread any additional premium resulting from changes to the policy equally over the remaining installments, if any.  If there are no remaining installments, the additional premium may be billed immediately as a separate transaction; and

 

·         May, but is not required to offer payment plan for extensions of a reporting period, or to insureds whose annual premiums are less than $500.  However, if offered to either, the plan must be made available to all within that group.

 

DEDUCTIBLES

 

 

 

Deductible plans should be filed if offered.

215 ILCS 5/155.18

A company writing medical liability insurance in Illinois is encouraged, but not required, to offer the opportunity for participation in a plan offering deductibles to its medical liability insureds. Any such plan shall be contained in a filed rate/rule manual section entitled “Deductibles Offered” or substantially similar title.  If an insurer uses a substantially similar title, the Rate/Rule Submission Letter or NAIC Uniform Transmittal form must indicate the name of the section that applies.

 

DISCOUNTS

 

 

 

Premium discount for risk management activities should be filed if offered.

215 ILCS 5/155.18

A company writing medical liability insurance in Illinois is encouraged, but not required, to offer their medical liability insureds a plan providing premium discounts for participation in risk management activities. Any such plan shall be contained in a filed rate/rule manual section entitled “Risk Management Activities Discounts” or substantially similar title.  If an insurer uses a substantially similar title, the Rate/Rule Submission Letter or NAIC Uniform Transmittal form must indicate the name of the section that applies.

 

CLAIMS MADE REQUIREMENTS

 

 

 

Extended reporting period (tail coverage) requirements.

215 ILCS 5/143(2)

Company Bulletin 88-50

 

When issuing claims-made medical liability insurance policies, insurers must include the following specific information in their rate/rule manuals:

 

·         Offer of an extended reporting period (tail coverage) of at least 12 months.  The rate/rule manual must specify whether the extended reporting period is unlimited or indicate its term (i.e. number of years).***

 

·         Cost of the extended reporting period, which must be priced as a factor of one of the following:***

 

o        the last 12 months' premium.

o        the premium in effect at policy issuance.

o        the expiring annual premium.

 

·         List of any credits, discounts, etc. that will be added or removed when determining the final extended reporting period premium.

 

·         Insurer will inform the insured of the extended reporting period premium at the time the last policy is purchased. The insurer may not wait until the insured requests to purchase the extended reporting period coverage to tell the insured what the premium will be or how the premium would be calculated.

 

·         Insurer will offer the extended reporting period when the policy is terminated for any reason, including non-payment of premium, and whether the policy is terminated at the company's or insured's request.

 

 

·         Insurer will allow the insured 30 days after the policy is terminated to purchase the extended reporting period coverage.***

 

***If the medical liability coverage is combined with other professional or general liability coverages, the medical liability insurer must meet all of the above requirements, except those indicated with ***, in which case, the insurer must: 

 

·         Offer free 5-year extended reporting period (tail coverage) or

·         Offer an unlimited extended reporting period with the limits reinstated (100% of aggregate expiring limits for the duration)

·         Cap the premium at 200% of the annual premium of the expiring policy; and

·         Give the insured a free-60 day period after the end of the policy to request the coverage.

 

GROUP MEDICAL LIABILITY

 

 

 

Group medical liability insurance is not specifically allowed under the Illinois Insurance Code. 

50 IL Adm. Code 906

 

Part 906 of the Illinois Administrative Code prohibits writing of group casualty (liability) insurance unless specifically authorized by statute.  The Illinois Insurance Code does not specifically authorize the writing of group medical liability insurance.

 

CANCELLATION & NONRENEWAL PROVISION REQUIREMENTS

 

 

 

If rate/rule manuals contain language pertaining to cancellation or nonrenewal, must comply with all cancellation/nonrenewal laws.

See Medical Liability Forms Checklist for Specific Information about Illinois Cancellation & Nonrenewal Laws and Regulations,

If a rate or rule manual contains language pertaining to cancellation or nonrenewal of any medical liability insurance coverage, such provisions must comply with all cancellation and nonrenewal provisions of the Illinois Insurance Code, including but not limited to the following:  143.10, 143.16, 143.16a, 143.17a.  See Medical Liability Forms Checklist for Specific Information about Illinois Cancellation & Nonrenewal Laws and Regulations,

 

ACTUARIAL REVIEW REQUIREMENTS

 

 

 

Rates shall not be excessive, inadequate, or unfairly discriminatory.

215 ILCS 5/155.18

In the making or use of rates pertaining to all classes of medical liability insurance, rates shall not be excessive, or inadequate, nor shall they be unfairly discriminatory.

 

Rate and rule manual provisions should be defined and explained in a manner that allows the Department to ascertain whether the provision could be applied in an unfairly discriminatory manner.  For example, if a rate/rule manual contains ranges of premiums or discounts, the provision must specify the criteria to determine the specific premium/discount an insured or applicant would receive.

 

The Director may, by order, adjust a rate or take any other appropriate action at the conclusion of a public hearing.

 

PRICING

 

 

 

Insurers shall consider certain information when developing medical liability rates.

215 ILCS 5/155.18

Consideration shall be given, to the extent applicable, to past and prospective loss experience within and outside this State, to a reasonable margin for underwriting profit and contingencies, to past and prospective expenses both countrywide and those especially applicable to Illinois, and to all other factors, including judgment factors, deemed relevant within and outside Illinois.

Consideration may also be given in the making and use of rates to dividends, savings or unabsorbed premium deposits allowed or returned by companies to their policyholders, members or subscribers.

The systems of expense provisions included in the rates for use by any company or group of companies may differ from those of other companies or groups of companies to reflect the operating methods of any such company or group with respect to any kind of insurance, or with respect to any subDepartment or combination thereof.

 

Minimum Premium Rules

 

 

 

Insurers may group or classify risks for establishing rates and minimum premiums.

215 ILCS 5/155.18

Risks may be grouped by classifications for the establishment of rates and minimum premiums.

 

“A” RATED RISKS

 

 

 

Individual Risk Rating

 

 

 

Risks may be rated on an individual basis as long as all provisions required in Section 155.18 are met.

215 ILCS 5/155.18

Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any difference among risks that have a probable effect upon losses or expenses. Such classifications or modifications of classifications of risks may be established based upon size, expense, management, individual experience, location or dispersion of hazard, or any other reasonable considerations, and shall apply to all risks under the same or substantially the same circumstances or conditions. The rate for an established classification should be related generally to the anticipated loss and expense factors or the class.

 

RISK CLASSIFICATION

 

 

 

Risks may be grouped by classifications.

215 ILCS 5/155.18

Risks may be grouped by classifications for the establishment of rates and minimum premiums.

 

Rating decisions based solely on domestic violence.

215 ILCS 5/155.22b

No insurer may that issues a property and casualty policy may use the fact that an applicant or insured incurred bodily injury as a result of a battery committed against him/her by a spouse or person in the same household as a sole reason for a rating decision.

 

Unfair methods of competition or unfair or deceptive acts or practices defined.

215 ILCS 5/424(3)

It is an unfair method of competition or unfair and deceptive act or practice if a company makes or permits any unfair discrimination between individuals or risks of the same class or of essentially the same hazard and expense element because of the race, color, religion, or national origin of such insurance risks or applicants.

 

Procedure as to unfair methods of competition or unfair or deceptive acts or practices not defined.

215 ILCS 5/429

Outlines the procedures the Director follows when he has reason to believe that a company is engaging in unfair methods of competition or unfair or deceptive acts or practices.

 

Territorial Definitions

 

 

 

Rate/rule manuals must contain correct and adequate definitions of Illinois territories.

215 ILCS 5/155.18

When an insurer’s rate/rule program includes differing territories within the State of Illinois, rate/rule manuals must contain correct and adequate definitions of those territories, and that all references to the territories or definitions are accurate, so the Department does not need to request additional information.

 

ACTUARIAL SUPPORT INFORMATION REQUIRED

 

 

 

ACTUARIAL CERTIFICATION

 

 

 

Actuarial certification must accompany all rate filings and all rule filings that affect rates.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

 

Actuarial Certification Form

Every rate and/or rating rule filing must include a certification by an officer of the company and a qualified actuary that the company’s rates and/or rules are based on sound actuarial principles and are not inconsistent with the company’s experience.

 

Insurers may use their own form or may use the sample form created by the Department.

 

ACTUARIAL OR STATISTICAL INFORMATION

 

 

 

Director may request actuarial and statistical information.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

The Director may require the filing of statistical data and any other pertinent information necessary to determine the manner of promulgation and the acceptability or unacceptability of a filing for rules, minimum premiums, rates, forms or any combination thereof.

 

If the Director requests information or statistical data to determine the manner the insurer used to set the filed rates and/or to determine the reasonableness of those rates, as well as the manner of promulgation and the acceptability or unacceptability of a filing for rules, minimum premiums, or any combination thereof, the insurer shall provide such data or information within 14 calendar days of the Director’s request.

 

Explanatory Memorandum

 

 

 

Insurers shall include actuarial explanatory memorandum with any rate filing, as well as any rule filing that affects the ultimate premium.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include actuarial explanatory memorandum with any rate filing, as well as any rule filing that affects the ultimate premium.  The explanatory memorandum shall contain, at minimum, the following information:

 

·         Explanation of ratemaking methodologies.

·         Explanations of specific changes included in the filing.

·         Narrative that will assist in understanding the filing.

 

Summary of Effects Exhibit

 

 

 

Insurers shall include an exhibit illustrating the effect of each change and calculation indicating how the final effect was derived.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include an exhibit illustrating the effect of each individual change being made in the filing (e.g. territorial base rates, classification factor changes, number of exposures affected by each change being made, etc.), and include a supporting calculation indicating how the final effect was derived.

 

Actuarial Indication

 

 

 

Insurers shall include actuarial support justifying the overall changes being made.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include actuarial support justifying the overall changes being made, including but not limited to:

 

·         Pure premiums (if used).

·         Earned premiums.

·         Incurred losses.

·         Loss development factors.

·         Trend factors.

·         On-Level factors.

·         Permissible loss ratios, etc.

 

Loss Development Factors and Analysis

 

 

 

Insurers shall include support for loss development factors and analysis.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include actuarial support for loss development factors and analysis, including but not limited to loss triangles and selected factors, as well as support for the selected factors.

 

Ultimate Loss Selections

 

 

 

Insurers shall include support for ultimate loss selections.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include support for ultimate loss selections, including an explanation of selected losses if results from various methods differ significantly.

 

Trend Factors and Analysis

 

 

 

Insurers shall include support for trend factors and analysis.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include support for trend factors and analysis, including loss and premium trend exhibits demonstrating the basis for the selections used.

 

On-Level Factors and Analysis

 

 

 

Insurers shall include support for on-level factors and analysis.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include support for on-level factors and analysis, including exhibits providing on-level factors and past rate changes included in calculations.

 

Loss Adjustment Expenses

 

 

 

Insurers shall include support for loss adjustment expenses.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include support for loss adjustment expenses, including exhibits providing documentation to support factors used for ALAE and ULAE.  If ALAE is included in loss development analysis, no additional ALAE exhibit is required.

 

Expense Exhibit

 

 

 

Insurers shall include an expense exhibit.

 

Insurers may use expense provisions that differ from those of other companies or groups of companies.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include an exhibit indicating all expenses used in the calculation of the permissible loss ratio, including explanations and support for selections.

 

The systems of expense provisions included in the rates for use by any company or group of companies may differ from those of other companies or groups of companies to reflect the operating methods of any such company or group with respect to any kind of insurance, or with respect to any subDepartment or combination thereof.

 

Investment Income Calculation

 

 

 

Insurers shall include an exhibit for investment income calculation.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include an exhibit demonstrating the calculation for the investment income factor used in the indication.

 

Profit and Contingencies Calculation

 

 

 

Insurers shall include an exhibit for profit and contingencies load.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall include an exhibit illustrating the derivation of any profit and contingencies load. 

 

Credibility Standard Used

 

 

 

Insurers shall include the number of claims being used to calculate the credibility factor.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers should include the number of claims being used to calculate the credibility factor. If another method of calculating credibility is utilized, insurers should include a description of the method used.

 

Other Actuarial Information Required

 

 

 

Insurers must include the information described in this section.

 

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers shall also include the following information:

 

·         All actuarial support/justification for all rates being changed, including but not limited to changes in:

 

o        Base rates;

o        Territory definitions;

o        Territory factor changes;

o        Classification factor changes;

o        Classification definition changes;

o        Changes to schedule credits/debits, etc.

 

·         Exhibits containing current and proposed rates/factors for all rates and classification factors, etc. being changed. 

 

·         Any exhibits necessary to support the filing that are not mentioned elsewhere in this checklist.

 

Schedule Rating

 

 

 

Insurers must include the described information described at right.

215 ILCS 5/155.18

 

50 IL Adm. Code 929

Insurers should include appropriate actuarial justification when filing schedule rating plans and/or changes to schedule rating plans.