§ 10-4-404.5 — Rating plans - property and casualty type II insurers - rules

Colorado § 10-4-404.5

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Property and Casualty Insurance

Text

(1)
The commissioner may promulgate rules for type II insurers that establish
reasonable standards for rating plans, including experience rating plans, schedule
rating plans, and expense reduction plans, and that are designed to modify rates in
the development of premiums for individual risks insured in the property and
casualty insurance market. Such rules may permit recognition of expected
differences in loss and expense characteristics and shall be designed so that such
plans are reasonable and equitable in their application and are not unfairly
discriminatory. Such rules shall not prevent the development of new rating methods
that would otherwise comply with this part 4. The rules may establish maximum
charges against and credits to the experience rating of an insured that may result
from the application of a rating plan. The rules may encourage the use of loss
control programs, safety programs, and other methods of risk management and
may require insurers to maintain documentation of the basis for the charges and
credits applied under any plan. The rules may also require the rating plans to
include merit rating to the extent feasible.

(2) This section shall not apply to insurers providing coverage for exempt
commercial policyholders, as defined pursuant to section 10-4-1402 and rules
adopted by the commissioner pursuant to that section.

Legislative History

Source: L. 88: Entire section added, p. 402, � 1, effective April 29. L. 99: Entire section amended, p. 387, � 4, effective January 15, 2000.